AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Answer: B
European companies secured monopoly rights over trade and shifted commerce to new colonial ports (Bombay, Calcutta), causing credit networks to collapse and export volumes through Surat to slump from ₹16 million to ₹3 million by the 1740s.
Source: Chapter 4, Section 3.1 – The Age of Indian Textiles
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The passage directly states: "European companies gradually gained power — first securing concessions, then monopoly rights to trade. This resulted in a decline of the old ports of Surat and Hoogly… exports fell dramatically, credit began drying up." The specific trade figures (₹16 million → ₹3 million) are key evidence examiners expect. Options A (earthquake) and D (demand decline) are not mentioned in the text; Option C (voluntary move for lower duties) is also unsupported. Always anchor your MCQ justification in textbook facts.