Question : The question consists of two statements, namely, Assertion (A) and Reason (R). Use them to choose the correct alternative.
Assertion (A): During British rule, India's exports exceeded the imports leading to a surplus of balance of trade.
Reason (R): The surplus of the balance of trade was used for the growth and development of India.
Option 1: Both A and R are true, and R is the correct explanation of A
Option 2: Both A and R are true, but R is not the correct explanation of A
Option 3: A is false but R is true
Option 4: A is true and R is false
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Correct Answer: A is true and R is false
Solution : The correct option is A is true, and R is false.
During British rule, India had periods where its exports exceeded imports, creating a trade surplus. However, this surplus was not primarily used for the growth and development of India. Instead, the British colonial administration often used this surplus to finance their interests and cover the costs of maintaining the colonial infrastructure and administration. India's economic surplus was largely drained out of the country to support the British Empire rather than being reinvested for India's growth and development.
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