Q. During the colonial period India’s exports surpluses were used to settle the trade deficit of:
(a) Germany
(b) Japan
(c) China
(d) Britain
Ans: (d) Britain
Explanation: The correct answer is (d) Britain.
During the colonial period, India’s exports surpluses were primarily used to settle the trade deficit of Britain. India was a major supplier of raw materials to British industries, and its agricultural and industrial products were exported to Britain in large quantities. These exports generated revenue for the British economy and helped offset Britain’s trade deficit with other countries.
The British colonial administration in India implemented policies that promoted the extraction of resources and wealth from India to benefit the British Empire. This included the export of raw materials and finished goods from India to Britain, while British manufactured goods were imported into India. The trade surplus generated by India’s exports was used to meet the trade deficit of Britain, contributing to the economic imbalance between the two countries.
Therefore, the correct answer is (d) Britain.
