GENERAL KNOWLEDGE

Detailed explanation-1: -Britain retained its monopoly control and ruled over India’s imports and exports. Half of India’s foreign trade was only authorised to Britain and the rest half was allowed to trade with other countries like Ceylon (Sri Lanka), China, and Persia (Iran).

Detailed explanation-2: -At the time of independence, India was a major exporter of raw material such as raw silk, cotton, wool, sugar, indigo, jute, etc. At that time, India used to import finished consumer goods such as cotton, silk and light machinery from factories of Britain.

Detailed explanation-3: -British ruined the Indian economy by imposing a policy of one-way free trade on India after 1813 this allowed British manufacturers, especially cotton textiles, to export goods to Indian markets at a nominal fee.