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Consider the following statements. 
1. Cheap and machine-made imports were reduced in the Indian market after the Charter Act of 1813 which abolished the monopoly of the company to trade with China 
2. On the other hand, Indian products found it more and more difficult to penetrate the European markets
Which of these statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both of them
  • d)
    Neither of them
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Consider the following statements. 1. Cheap and machine-made imports ...
Cheap and machine-made imports flooded the Indian market after the Charter Act of 1813, allowing one-way free trade for British citizens. On the other hand, Indian products found it more and more difficult to penetrate the European markets.
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Most Upvoted Answer
Consider the following statements. 1. Cheap and machine-made imports ...
Explanation:

Statement 1:
- The Charter Act of 1813 did indeed abolish the monopoly of the East India Company to trade with China.
- This led to a reduction in cheap and machine-made imports in the Indian market as the Company's monopoly was no longer in place.

Statement 2:
- Indian products faced increasing difficulty in penetrating the European markets during this time.
- The industrial revolution in Europe led to the rise of machine-made goods which often outcompeted Indian products in terms of price and quality.
- Additionally, protectionist measures such as high tariffs were implemented in European countries to protect their own industries, making it even harder for Indian products to enter these markets.
Therefore, statement 2 is correct while statement 1 is incorrect. This shows the impact of global economic changes on the trade dynamics between India and Europe during the 19th century.
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Consider the following statements. 1. Cheap and machine-made imports were reduced in the Indian market after the Charter Act of 1813 which abolished the monopoly of the company to trade with China 2. On the other hand, Indian products found it more and more difficult to penetrate the European marketsWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) Neither of themCorrect answer is option 'B'. Can you explain this answer?
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