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Question 15.
Indicate the volume and direction of India’s trade at the time of independence.
At the time of independence in 1947, India’s foreign trade reflected the colonial pattern of economic exploitation. Both the volume and direction of trade were shaped to suit British interests rather than India’s development needs.
In terms of volume, India’s foreign trade had expanded over time, but this growth did not benefit the Indian economy adequately. India generally showed an export surplus, but this surplus was used to finance the drain of wealth through salaries, pensions, interest payments, and profits remitted to Britain, instead of being invested in India.
Regarding the direction of trade, Britain occupied a dominant position. About half of India’s foreign trade was conducted with the United Kingdom. Other trading partners included China, Ceylon (Sri Lanka), Persia (Iran), and some countries of Southeast Asia, but their share was relatively small.
India mainly exported primary products such as raw cotton, jute, tea, coffee, and foodgrains, while importing manufactured goods, machinery, and capital equipment from Britain.
Conclusion
Thus, at the time of independence, India’s trade volume was significant but exploitative in nature, and the direction of trade was heavily tilted towards Britain, reinforcing India’s role as a supplier of raw materials and a market for finished goods.