AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Under colonial rule, Indian merchants were barred from trading with Europe in manufactured goods and were restricted to exporting raw materials like raw cotton, opium, and wheat. They were also gradually edged out of the shipping business. European Managing Agencies controlled large sectors of Indian industries, and Indian businessmen were not allowed to join European chambers of commerce.
Source: Chapter 4, Section 4.1 – The Early Entrepreneurs
The examiner expects two clear reasons — trade restrictions (barred from manufactured goods trade) and exclusion from business decision-making (European Agencies, chambers of commerce). Mentioning raw material exports shows understanding of colonial economic exploitation. Avoid going into weavers' issues — this question is specifically about merchants and businessmen.