(A)OR(B)

“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.

The restrictive policies under the colonial rule, adversely affected India’s foreign trade. India was made an exporter of primary products like cotton, jute, silk, and sugar, and an importer of finished goods and machinery from Britain. Furthermore, Britishers exercised monopoly control, over half of India’s foreign trade directed towards them, while limited trade was allowed with other countries like China, Ceylon and Persia. The opening of the Suez Canal further strengthened British control, worsening the structure, composition and volume of India’s foreign trade.

The main objectives of land settlement policies under the British rule were to create a systematic and efficient mechanism for tax collection and to maximise revenue. This revenue was targeted to meet administrative expenses and financing the military needs of the colonial government.

The implementation of these policies worsened the condition of Indian farmers, leading to their exploitation and distress. As a result, agricultural productivity remained low and the sector faced stagnation, resulting in widespread poverty and social unrest.