Read the following statements carefully. 1 Statement 1: During British rule in India, the export surplus was utilised to…
Read the following statements carefully. 1
Statement 1: During British rule in India, the export surplus was utilised to import invisible items from Britain.
Statement 2: Indians paid for the expenses incurred by an office set up by the colonial government in Britain.
In the light of the above statements, choose the correct option from the following:
Both Statements 1 and 2 are true.
(C) Both Statements 1 and 2 are true.
Explanation:
Statement 1 is True
During British rule, India had export surplus, but the earnings were used to pay for:
- Administrative expenses,
- War expenses,
- Import of invisible items from Britain.
Statement 2 is also True
The colonial government maintained an office in Britain called the India Office, and its expenses were paid by Indian revenues.
These payments formed part of the economic drain from India to Britain.
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