Briefly discuss the main features of international trade during the British rule.

Question

Accepted Answer

The main features of international trade during the British rule are as follows:

1. Exporter of primary products and importer of finished goods: Under the colonial rule, India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo and jute, and an importer of finished consumer goods like cotton, silk and woollen clothes and capital goods like light machinery.

2. Britain's monopoly control: More than half of India's foreign trade was restricted to Britain. The opening of the Suez Canal in 1869 further intensified British control over India's foreign trade by providing a direct and cheaper trade route.

3. Surplus trade but only to benefit the Britishers: Due to huge exports of primary goods, the balance of trade showed a surplus. But this surplus was not used as an investment for future growth; it was spent by the Britishers to fight wars to expand their territory. Accordingly, there was a huge drain of Indian wealth.