British India's Economic Policy

Choose the Correct Answer

Correct Answer : Option a

Explanation
Statement 1 is correct: British economic policies turned India into a source of raw materials and a market for British goods. The Charter Act of 1813 allowed duty-free British imports, causing a surge in demand. This devastated Indian artisans and weavers, whose handmade products couldn’t compete with the cheaper, machine-made British goods flooding the market.

Statement 2 is not correct: Though exploitative, British policies didn’t stagnate India’s foreign trade; instead, they redirected it to benefit Britain. India began exporting raw materials instead of finished goods, while British-manufactured products dominated imports. Trade volume stayed high, but the shift harmed India’s economy by reducing self-sufficiency and weakening traditional industries.

Statement 3 is correct: The British focused on cash crops like indigo, cotton, and opium, reducing food crop cultivation, causing shortages and triggering famines. Agricultural commercialization served British economic goals, neglecting the dietary needs of Indians. This shift undermined food security, leaving the population vulnerable to hunger and dependent on market-driven farming priorities.