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Q.

Britain’s trade surplus in India also helped pay the so-called ____.


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Detailed Solution

Britain’s trade surplus in India also helped pay the so-called home charges.
The levies or fees used by British officials or persons living in India during British rule are known as home charges. Britain's trade surplus in India also contributed to the payment of so-called "home charges," which comprised private remittances home by British officials and traders, interest payments on India's foreign debt, and pensions for British officials in India. Britain had a "trade surplus" with India. Britain used this surplus to balance its trade deficits with other countries, i.e., countries from which Britain imported more than it sold. A multilateral settlement system allows one country's deficit to offset its surplus with a third country. India played an essential role in the late-nineteenth-century global economy by assisting Britain in balancing its deficits.
 
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