Q1. Why did Britain impose heavy import duties on Indian textile goods in the early 19th century?
- To encourage Indian textile exports to European markets
- To eliminate duties and establish equal trade relations
- To protect British manufacturers from cheaper Indian textiles
- To promote Indian industrial development under British rule
Correct Option: 3. To protect British manufacturers from cheaper Indian textiles.
Explanation: Indian textiles like calicos and muslins were cheaper and superior to British-made goods. To protect its domestic textile industry, Britain imposed heavy import duties (e.g., 67.5% on calicos). This unfair trade policy limited Indian access to British markets and shielded British manufacturers from competition.
Q2. According to H.H. Wilson, what was the reason behind Britain’s prohibitory trade policies against Indian textiles
- Indian goods were of inferior quality
- British mills couldn’t compete without protection
- Indian rulers demanded higher tariffs
- Indian traders requested export restrictions
Correct Option: 2. British mills couldn’t compete without protection.
Explanation: Wilson admitted that Indian goods could undercut British textiles by 50–60%. Therefore, prohibitory duties were necessary to protect nascent British industries, which would have otherwise collapsed.
Q3. What was the primary nature of India’s exports after 1813?
- Manufactured goods
- Agricultural tools
- Raw materials and plantation products
- Machinery and finished textile
Correct Option: 3. Raw materials and plantation products.
Explanation: India, after being deindustrialized, was reduced to a supplier of raw cotton, silk, foodgrains, indigo, and tea, serving British industrial needs.
Q4. How did the opium trade reflect the exploitative nature of British commercial policy?
- Britain banned it globally
- Indian opium was used in British medicine
- British officials supported opium rehabilitation in India
- Opium was promoted in China despite a ban, but banned in Britain
Correct Option: 4. Opium was promoted in China despite a ban, but banned in Britain.
Explanation: Even after China banned opium, the British continued to export it from India for profit, while strictly banning its import into Britain, showing blatant economic exploitation.
Q5. What is meant by the term “Drain of Wealth” in the context of British India?
- Outflow of India’s wealth without equivalent return
- Increase in Indian imports
- Migration of Indian labor to Britain
- Loss of natural resources due to industrialization
Correct Option: 1. Outflow of India’s wealth without equivalent return.
Explanation: India’s wealth was exported to Britain in the form of revenue, salaries, and profits, without any material or economic benefit to India, unlike previous rulers who spent resources within the country.