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By the end of the 18th century, India's exports exceeded its imports. This was due to:
- a)free trade policy adopted by Britishers to promote Indian products.
- b)investments made by British government in infrastructure which led to surplus production.
- c)increased awareness among Indian peasants about world market.
- d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.
Correct answer is option 'D'. Can you explain this answer?
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By the end of the 18th century, India's exports exceeded its imports....
- The drain of wealth from Bengal began in 1757 when the Company’s servants began to carry home immense fortunes extorted from Indian.rulers, zamindars, merchants and the common people. They sent home nearly £ 6 million between 1758 and 1765. This amount was more than four times the total land revenue collection of the Nawab of Bengal in 1765. This amount of drain did not include the trading
- profits of the Company which were often no less illegally derived. In 1765 the Company acquired the Diwani of Bengal and thus gained control over its revenues.
- The Company later began to purchase Indian goods of the revenue of Bengal and to export them. These purchases were known as ’Investments’. Thus, through ’Investments’ to Bengal’s revenue was sent to England. For example, from 1765 to 1770, the Company sent out nearly £4.million worth of goods of about 33 percent of the net revenue of Bengal. By the end of the 18th century, the drain constituted nearly 9 per cent of India’s national income.
- The actual drain was even more, as a large part of the salaries and other incomes of English officials and the trading fortunes of English merchants also found their way into England. The drain took the form of an excess of India’s exports over its imports, for which India got no return.
Most Upvoted Answer
By the end of the 18th century, India's exports exceeded its imports....
By the end of the 18th century, India's exports exceeded its imports. This was primarily due to the East India Company's practice of purchasing Indian goods from the revenue of Bengal and exporting them. This answer will provide a detailed explanation of why option 'D' is the correct answer.
The East India Company's practice of purchasing Indian goods:
- The East India Company was a British trading company that had a monopoly over trade in India during the 18th century.
- The company established a strong presence in Bengal, which was known for its prosperous textile industry and other goods such as indigo, saltpetre, and opium.
- The company used the revenue it collected from Bengal to purchase Indian goods at a relatively low cost from local producers and traders.
- This practice allowed the company to export these Indian goods to other parts of the world, including Europe and China, where they were in high demand.
Impact of the East India Company's practice:
- The East India Company's practice of purchasing Indian goods had a significant impact on India's trade balance.
- The company's control over Bengal, which was one of the wealthiest provinces in India, allowed it to access a wide range of high-quality Indian goods.
- The company's extensive trade network and maritime power enabled it to export these goods to other markets, resulting in a surplus in India's exports.
- The revenue generated from the export of Indian goods helped the company sustain its operations and expand its influence in India.
Other factors contributing to India's export surplus:
While the East India Company's practice of purchasing Indian goods played a crucial role in India's export surplus, other factors also contributed to this phenomenon.
- India had a long history of trade and commerce, with well-established trade routes connecting it to various parts of the world.
- Indian goods, such as textiles, spices, and precious metals, were highly sought after in international markets.
- The availability of abundant natural resources and skilled artisans further contributed to India's export capacity.
In conclusion, by the end of the 18th century, India's exports exceeded its imports primarily due to the East India Company's practice of purchasing Indian goods and exporting them. This practice allowed the company to access a wide range of high-quality Indian goods and export them to international markets. While other factors like India's rich trading history and availability of resources also played a role, the East India Company's practice was the key driver behind India's export surplus during this period.
The East India Company's practice of purchasing Indian goods:
- The East India Company was a British trading company that had a monopoly over trade in India during the 18th century.
- The company established a strong presence in Bengal, which was known for its prosperous textile industry and other goods such as indigo, saltpetre, and opium.
- The company used the revenue it collected from Bengal to purchase Indian goods at a relatively low cost from local producers and traders.
- This practice allowed the company to export these Indian goods to other parts of the world, including Europe and China, where they were in high demand.
Impact of the East India Company's practice:
- The East India Company's practice of purchasing Indian goods had a significant impact on India's trade balance.
- The company's control over Bengal, which was one of the wealthiest provinces in India, allowed it to access a wide range of high-quality Indian goods.
- The company's extensive trade network and maritime power enabled it to export these goods to other markets, resulting in a surplus in India's exports.
- The revenue generated from the export of Indian goods helped the company sustain its operations and expand its influence in India.
Other factors contributing to India's export surplus:
While the East India Company's practice of purchasing Indian goods played a crucial role in India's export surplus, other factors also contributed to this phenomenon.
- India had a long history of trade and commerce, with well-established trade routes connecting it to various parts of the world.
- Indian goods, such as textiles, spices, and precious metals, were highly sought after in international markets.
- The availability of abundant natural resources and skilled artisans further contributed to India's export capacity.
In conclusion, by the end of the 18th century, India's exports exceeded its imports primarily due to the East India Company's practice of purchasing Indian goods and exporting them. This practice allowed the company to access a wide range of high-quality Indian goods and export them to international markets. While other factors like India's rich trading history and availability of resources also played a role, the East India Company's practice was the key driver behind India's export surplus during this period.
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By the end of the 18th century, India's exports exceeded its imports. This was due to:a)free trade policy adopted by Britishers to promote Indian products.b)investments made by British government in infrastructure which led to surplus production.c)increased awareness among Indian peasants about world market.d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.Correct answer is option 'D'. Can you explain this answer?
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By the end of the 18th century, India's exports exceeded its imports. This was due to:a)free trade policy adopted by Britishers to promote Indian products.b)investments made by British government in infrastructure which led to surplus production.c)increased awareness among Indian peasants about world market.d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about By the end of the 18th century, India's exports exceeded its imports. This was due to:a)free trade policy adopted by Britishers to promote Indian products.b)investments made by British government in infrastructure which led to surplus production.c)increased awareness among Indian peasants about world market.d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for By the end of the 18th century, India's exports exceeded its imports. This was due to:a)free trade policy adopted by Britishers to promote Indian products.b)investments made by British government in infrastructure which led to surplus production.c)increased awareness among Indian peasants about world market.d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.Correct answer is option 'D'. Can you explain this answer?.
By the end of the 18th century, India's exports exceeded its imports. This was due to:a)free trade policy adopted by Britishers to promote Indian products.b)investments made by British government in infrastructure which led to surplus production.c)increased awareness among Indian peasants about world market.d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about By the end of the 18th century, India's exports exceeded its imports. This was due to:a)free trade policy adopted by Britishers to promote Indian products.b)investments made by British government in infrastructure which led to surplus production.c)increased awareness among Indian peasants about world market.d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for By the end of the 18th century, India's exports exceeded its imports. This was due to:a)free trade policy adopted by Britishers to promote Indian products.b)investments made by British government in infrastructure which led to surplus production.c)increased awareness among Indian peasants about world market.d)the East India Company's practise of purchasing Indian goods from the revenue of Bengal and exporting them.Correct answer is option 'D'. Can you explain this answer?.
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