AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Early 19th Century – Shift in Export Pattern:
Historically, India exported fine cotton textiles to Europe. With British industrialisation, tariffs were imposed on Indian cloth entering Britain, and Indian textiles lost international markets too. The share of cotton textile exports fell from ~30% (1800) to below 3% (1870s). India shifted from exporting manufactures to exporting raw materials — raw cotton's share rose from 5% (1812) to 35% (1871); opium and indigo also became major exports.
India's Role in Multilateral Trade:
Britain had a trade surplus with India. This surplus helped Britain balance its trade deficits with other countries, making India central to the 19th-century multilateral settlement system. It also funded 'home charges' — remittances, pensions, and debt interest paid by India to Britain.
Impact of the Great Depression:
India's exports and imports nearly halved (1928–1934); wheat prices fell 50%. Peasants suffered most — revenues were not reduced, debts mounted, and lands were mortgaged. Bengal jute growers were devastated. India began exporting gold, helping Britain's recovery but not Indian peasants. Rural unrest led Gandhi to launch the Civil Disobedience Movement (1931). Urban dwellers with fixed incomes fared better; industrial investment grew due to tariff protection.
Source: Chapter 3, Sections 2.6 and 3.5
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