UPPSC 2017 GS-I Modern Indian History
Question

Consider the following statements and select the correct answer from the codes given below the statements:

Assertion [A]: Generally, India had a favorable balance of trade during the British rule.
Reason [R]: The drain of wealth took the form of unrequited exports.

Answer & Solution

Answer: (Detailed Solution Below)

Option A: Both [A] and [R] are true and [R] is the correct explanation of [A]

Detailed Solution:

The correct answer is “Both [A] and [R] are true and [R] is the correct explanation of [A]”.

During British rule, India generally had a favorable balance of trade, meaning that its exports exceeded its imports.

The drain of wealth from India took the form of unrequited exports, where goods and resources were exported without equivalent returns, as a significant portion of the profits and earnings were transferred out of India to Britain.

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