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Q.

[[1]] is a situation under which the value of exports is more than imports.


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Detailed Solution

The trade surplus is a situation under which the value of exports is more than imports. In the 19th century, British manufacturers took over the Indian market. Food grain and raw material exports increased from India to Britain and the rest of the world. The value of imports from India was less than the value of British exports to India. Britain acquired a “trade surplus” with India, which was used to balance the trade deficit with other countries by Britain.
 
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