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History & Civics

Why did India's foreign trade decline during the British rule?

British Policies & Impact

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Answer

India's foreign trade declined during British rule due to several factors:

  1. Competition from British goods: Indian artisans couldn't compete with cheap British-made cloth, which flooded the market and led to the collapse of traditional industries.
  2. Unfavorable trade policies: The British imposed heavy duties on Indian exports, while their goods entered India duty-free, making Indian products uncompetitive.
  3. Focus on raw materials: India was made a supplier of raw materials for British industries, while British goods dominated Indian markets, limiting India's industrial growth.
  4. Impact of railways: The British-built railways helped their goods reach even remote areas of India, further displacing local industries and reducing foreign trade.

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