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Q.

[[1]] benefited from the trade surplus it had with India.


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Detailed Solution

Britain benefited from the trade surplus it had with India.
The UK's trade surplus with India helped cover the so-called "home charges." A trade surplus exists when imports outpace exports in value. In the 19th century, British manufacturers dominated the Indian market as food grain and raw material exports from India to Britain and the rest of the world increased. India imported goods at a lower cost than Britain exported to India. Britain built up a "trade surplus" with India to compensate for its economic deficit with other countries. This arrangement, also known as a multilateral settlement system, permits one country's surplus to offset another's deficit.
 
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