Consider the following statements in context with general trends in British Era Economy of India:
1. India’s Foreign Trade both in Volume as well as Value decreased
2. The Drain of Wealth from India was mainly due to decreased exports
3. The population generally migrated from Rural areas to urban areas
Which among the above statements is / are correct?
None of the given three statements is correct in this question. The first statement which says that India’s Foreign Trade both in Volume as well as Value decreased is incorrect, because the trade in volume as well as value had increased. The British has used the data to negate the theory of economic drain propounded by Indians such as Dada Bhai Naoroji.
The second statement which says that Drain of Wealth from India was mainly due to decreased exports , is also incorrect because the exports had increased. And even the increased exports contributed to the Economic Drain because, these increased exports did not add anything in the material value of the country. The exports proceeds were used to pay the debts and meet the expenditures. The Third statement which says that population generally migrated from Rural areas to urban areas is also wrong. This is because in British Era, the handicraft industries in the Urban areas got decayed and the population Pressure on land increased and more and more people moved to rural area leading to more ruralization of India.
This question is a part of GKToday's Integrated IAS General Studies Module