"The Restrictive policies under the colonial government adversely affected the structure, composition and volume of India's foreign trade." Justify the above statement with valid explanation. Explain the main objectives and impacts of land settlement policies implemented under the British government rule.

Question

Accepted Answer

I **justify** that restrictive policies adversely affected India's foreign trade. Justification:

**Impact on Structure:**
- India became exporter of primary products and importer of finished goods
- Monopoly control maintained by British Government

**Impact on Composition:**
- Raw materials exported at cheap rates
- Finished goods imported at higher prices

**Impact on Volume:**
- More than half of trade restricted to Britain
- Limited trade with other countries

**Tariff Barriers:**
- Duties imposed on imports to make them costlier
- Protect domestic producers from international competition
- Example: Import duties on foreign goods

**Non-Tariff Barriers:**
- Quotas and import licensing
- Restrict quantity of imports/exports
- Example: Import licensing requirements