Foreign Trade in Colonial India MCQs
Foreign Trade in Colonial India – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Indian Economy on the Eve of Independence
Topic: Foreign Trade in Colonial India
Board: CBSE Board Examinations
Subject: Economics
Section: Indian Economy on the Eve of Independence
Topic: Foreign Trade in Colonial India
Board: CBSE Board Examinations
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation. Each question includes detailed explanations for clear conceptual understanding.
1. India’s foreign trade during colonial rule was controlled by:
Answer: B
The British government monopolised India’s trade policies to serve its own economic interests.
The British government monopolised India’s trade policies to serve its own economic interests.
2. The nature of India’s exports was mainly:
Answer: C
India exported raw materials like cotton, jute, and indigo for British industries.
India exported raw materials like cotton, jute, and indigo for British industries.
3. Major imports into India included:
Answer: B
Finished British goods flooded Indian markets, harming local industries.
Finished British goods flooded Indian markets, harming local industries.
4. India’s trade surplus was used to:
Answer: B
Export surplus financed British administrative and war expenses.
Export surplus financed British administrative and war expenses.
5. This transfer of surplus is called:
Answer: B
Wealth generated in India was transferred to Britain without adequate returns.
Wealth generated in India was transferred to Britain without adequate returns.
6. India’s major trading partner was:
Answer: B
Britain dominated India’s foreign trade structure.
Britain dominated India’s foreign trade structure.
7. Export of food grains led to:
Answer: B
Despite shortages, grains were exported, worsening famines.
Despite shortages, grains were exported, worsening famines.
8. Trade policies were framed to benefit:
Answer: C
Colonial trade supported Britain’s industrialisation.
Colonial trade supported Britain’s industrialisation.
9. India imported mainly:
Answer: B
Machine‑made textiles replaced Indian handlooms.
Machine‑made textiles replaced Indian handlooms.
10. Colonial foreign trade resulted in:
Answer: B
Wealth outflow weakened India’s economy.
Wealth outflow weakened India’s economy.
11. India’s export basket lacked:
Answer: B
Industrial underdevelopment limited finished exports.
Industrial underdevelopment limited finished exports.
12. British used India as a:
Answer: B
India supplied raw materials and bought British goods.
India supplied raw materials and bought British goods.
13. Home Charges refer to:
Answer: B
Administrative and pension payments sent to Britain.
Administrative and pension payments sent to Britain.
14. Trade surplus did NOT benefit:
Answer: C
Surplus was drained abroad.
Surplus was drained abroad.
15. Major export crop was:
Answer: A
Indigo was exported for dye industries.
Indigo was exported for dye industries.
16. Direction of trade was:
Answer: B
Britain dominated India’s trade routes.
Britain dominated India’s trade routes.
17. Export earnings financed:
Answer: B
India funded imperial wars.
India funded imperial wars.
18. Foreign trade structure was:
Answer: B
Designed to exploit colonial resources.
Designed to exploit colonial resources.
19. Trade monopoly rested with:
Answer: A
Colonial authorities controlled trade flows.
Colonial authorities controlled trade flows.
20. Overall impact on India’s economy:
Answer: C
Foreign trade policies weakened domestic growth.
Foreign trade policies weakened domestic growth.