What was the condition of India's foreign trade before 1947?
Ava Robinson
Updated on February 22, 2026
India's foreign trade was largely determined by the strategic needs of the British colonial powers prior to its independence in 1947 Like other colonies, India too was a supplier of raw materials and agricultural commodities to Britain and other industrial countries and it used to import the manufactured goods from
Consequently, what was the condition of foreign trade at the time of independence?
The state of India's foreign trade on the eve of Independence was as follows: (a) Net Exporter of Raw Material and Importer of Finished Goods. India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc.
One may also ask, what was India's balance of trade before independence? Balance of Trade in India averaged -2752.60 USD Million from 1957 until 2020, reaching an all time high of 790 USD Million in June of 2020 and a record low of -20210.90 USD Million in October of 2012.
Beside above, what was the condition of Foreign Trade under the British rule?
During this period, Britain held the monopoly of over India's imports and exports. Therefore, most of the foreign trade was restricted only to Britain and other was while the rest half was allowed to trade with other countries like Ceylon (Sri Lanka), China, and Persia (Iran).
What is India's foreign trade policy?
India's Foreign Trade Policy (FTP) provides the basic framework of policy and strategy for promoting exports and trade. It is periodically reviewed to adapt to the changing domestic and international scenario.
Related Question Answers
What did the British import from India?
Economic impact of British imperialismIn the seventeenth century, India was a relatively urbanised and commercialised nation with a buoyant export trade, devoted largely to cotton textiles, but also including silk, spices, and rice. The subject of the economic impact of British imperialism on India remains disputable.
What is demographic condition of Indian economy?
Answer: India's demographic conditions during the British rule depict our economy as stagnant and backward. Due to high birth rate and high death rate the population growth was stagnant before 1921 the Infant Mortality Rate was also very high of about 218 per thousand which today stands at 47.57 per thousand.How did India perform in foreign trade post independence?
Though the balance of trade was favourable, but it concealed a low level of industrialisation in the country. After independence, the pattern, of India's foreign trade has undergone medical changes mainly as a result of industrial progress during five year plans.What caused food shortage in India after partition?
The main cause of food shortage in India after partition was that the food surplus areas of West Punjab and Sindh went to Pakistan. The British followed a typical colonial pattern of trade in India, where it was made to serve their interests.What was the condition of foreign trade in India on the eve of Independence?
The state of India's foreign trade on the eve of independence was as follows: Net Exporter of Raw Material and Importer of Finished Goods. India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc.What were the benefits of British rule in India?
The British view tended to portray British rule as a charitable exercise - they suffered India's environment (eg climate, diseases) in order to bring to India good government and economic development (eg railways, irrigation, medicine). Modern admirers of British rule also note these benefits.What are the effects of foreign trade class 10?
Effects of foreign trade are as follows:- Chinese have started exporting Chinese plastic toys to India.
- Buyers in India now have the option of choosing between Indian and Chinese toys.
- Because of the cheaper prices and new designs, Chinese toys have become more popular in the Indian markets.
What was the condition of Indian economy at the time of independence?
When India declared its independence in 1947, its GDP was a mere 2.7 lakh crore accounting for a paltry 3 per cent of the world's total GDP. In 2018, India leapfrogged France to become the fifth largest economy in the world, now behind only the United States, China, Japan, and Germany.Why did the British want India to export raw materials?
The British used colonial India as a source of raw materials and a market for their manufactured goods. Britain loved to use her colonies (including America) as markets for her manufactured goods, in part because she could sell them there without dealing with foreign tariffs.How was India's foreign trade managed before the British came?
As much as half of the foreign trade was restricted to Britain. Before colonial period, India was exporting manufactured goods which enjoyed worldwide demand. Additionally, the opening of Suez Canal intensified this control of Britishers over Indian foreign trade.Which was the most important commodity exported from India in the 17th century?
Indigo tradeWhich industry was ruined under the British rule?
The traditional handicrafts industries were ruined under the British rule.Why did India export trade decline in the 19th century?
Answer. Answer:Bcs in the 19th century India was turned into a colonial empire. Britishers levied high taxes on exported goods whereas british goods was imported tax free or with nominal tax. as a result of this the industries in India started declining in 19 the century.What were the two main drawbacks of the industrial sector during colonial rule?
There was very minimal appreciation of the labor forces and compensation of the employees by the colonial regime therefore the workers motivation was very low, with low motivation the workers input will definitely go down low input will obviously lead to lower rates of industrials potential output therefore hinderedWhat are the main reason for stagnation in agriculture sector during British rule was?
Land tenure systems : The stagnation in the agricultural sector was caused mainly because of the various systems of land-settlement that were introduced by the colonial government. Particularly under the Zamindari system, the profit accruing out of the agriculture sector went to Zamindars instead of the cultivators.What did India export in the 19th century?
The most important agricultural commodities for India in the first half of the 19th century were opium, raw cotton, raw silk, and sugar, and they were a growing fraction of India's exports. By 1811, they accounted for 57 percent of India's exports by value compared to 33 percent for cotton piecegoods (Chaudhuri 1983).What do you mean by drain of wealth?
The transfer of wealth from India to England for which Indian got no proportionate economic return, is called the Drain of Wealth. Till the Battle of Plassey, the European traders used to bring gold into India to buy Indian cotton and silk.Which country has maximum foreign trade with India?
Largest trading partners with India| Rank | Country | Imports |
|---|---|---|
| 1 | China | 68.06 |
| 2 | United States | 25.7 |
| 3 | United Arab Emirates | 19.45 |
| 4 | Saudi Arabia | 20.32 |
What is India's trade deficit with China?
India's trade deficit with China shrunk to $5.8 billion in the April-June 2020-21 period from $13.1 billion in the same period last fiscal as a result of the Centre's efforts to increase exports and reduce imports from the neighbouring country, Commerce & Industry Minister Piyush Goyal has said.What does China import from India?
In the FY 2019-20 Indian export to China stands at $16.6 billion.Hemant Singh.
| Exported Products | 2018-19 (Rs.cr) | 2017-18 (Rs.cr) |
|---|---|---|
| 1.Organic Chemical | 22760 | 13578 |
| 2.Mineral fuels | 20031 | 9731 |
| 3.Cotton | 12444 | 6476 |
| 4.Ores | 8572 | 8124 |
Does India import more than export?
Exports and importsIndia exports approximately 7500 commodities to about 190 countries, and imports around 6000 commodities from 140 countries. India exported US$318.2 billion and imported $462.9 billion worth of commodities in 2014.
What does India export to the world?
Searchable List of India's Most Valuable Export Products| Rank | Indian Export Product | 2019 Value (US$) |
|---|---|---|
| 1 | Processed petroleum oils | $42,212,861,000 |
| 2 | Diamonds (unmounted/unset) | $21,909,135,000 |
| 3 | Medication mixes in dosage | $14,529,723,000 |
| 4 | Jewelry | $13,369,370,000 |
Which countries have trade surplus?
Top 18 economies with the largest surplus| Rank | Economy | CAB (million US dollars) |
|---|---|---|
| 1 | Germany | 296,600 |
| 2 | Japan | 195,400 |
| 3 | China | 164,900 |
| 4 | Netherlands | 80,880 |
Why is foreign trade important for countries like India?
Answer: Foreign trade has got an important place in the economic development of a country. Thirdly, foreign trade helps the people to get different varieties of goods both in quantities terms and qualitative terms. Fourthly, foreign trade helps a developing country like India in its economic development.What does India import the most?
India main imports are: mineral fuels, oils and waxes and bituminous substances (27 percent of total imports); pearls, precious and semi-precious stones and jewelry (14 percent); electrical machinery and equipment (10 percent); nuclear reactors, boilers, machinery and mechanical appliances (8 percent); and organicIs India a trade surplus?
With sharp contraction in trade deficit, India's current account balance recorded a surplus of $19.8 billion (3.9 per cent of gross domestic product, or GDP) in the first quarter (Q1) of 2020-21 (FY21).Which is latest foreign trade policy?
The Government of India, Ministry of Commerce and Industry announced New Foreign Trade Policy on 01st April 2015 for the period 2015-2020, earlier this policy known as Export Import (Exim) Policy.Which port is more important for Indian Trade?
The JNPT, also known as Nhava Sheva port, is the busiest container port in India with an annual traffic of 5 million TEU.What are the main objectives of foreign trade policy?
Objectives of EXIM Policy of IndiaTo encourage stable economic expansion by offering access to necessary capital goods, raw materials, intermediate products, consumables, installations, and elements essential for providing services and expanding production.
Who controls foreign trade?
The U.S. Constitution, through the Commerce Clause, gives Congress exclusive power over trade activities between the states and with foreign countries. Trade within a state is regulated exclusively by the states themselves.What are the recent trends in India's foreign trade?
Significant expansion in trade over two and a half decadesDuring the last 25 years, India's exports have increased more than 17 times, from US$ 18.1 billion in 1990- 91 to US$ 309 billion in 2014-15, and India's imports have increased 19 times, from US$ 23.5 billion in 1990-91 to US$ 447 billion in 2014-15.
Who Provides Loan for foreign trade in ancient India?
loans for foreign trade in Ancient India is government.How many countries are involved in foreign trade?
Largest countries by total international trade| Rank | Country | Total international trade of goods and services (billions of USD) |
|---|---|---|
| – | World | 42,065 |
| – | European Union | 5,425 |
| 1 | United States | 4,921 |
| 2 | China | 4,342 |
