CA Foundation · Business Economics · Indian Economy
Which of the following is regarded as a major feature of British colonial economic policy that harmed India's traditional handicraft industries?
Colonial policy allowed British manufactures into India at low or no duty while placing heavy duties on Indian handicraft exports. This tariff discrimination, along with competition from cheap machine-made goods, ruined traditional industries like textiles, and India became an exporter of raw materials and importer of finished goods.
- AHeavy protective tariffs on imports of British manufactured goods
- BFree import of British manufactures combined with discriminatory duties on Indian handicraft exportsCorrect
- CState investment in village cottage industries
- DBan on export of raw cotton from India
Explanation
Colonial policy imposed heavy duties on Indian finished goods entering Britain while allowing cheap British machine-made goods into India. This caused decline of handicrafts such as textiles. Protective tariffs on British imports were not imposed, and raw materials were in fact exported.
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