'Composition of foreign trade of any country tells us about the nature of commodities that are exported and imported.' What can you state about the composition of foreign trade at the time of Independence?

Question

Accepted Answer

India's foreign trade under the British rule followed a typical colonial pattern, which was made to serve the interests of the British:

1. India exported raw materials to the home country of the British for their expanding industries.

2. India was also developed as a market for the finished goods of the British industries.

Thus, India was reduced to being a source of food for the British, a supplier of raw materials for the British industries and a market for their finished products. The composition of trade was, therefore, that of an exporter of primary products and an importer of finished manufactured goods.