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Q.

The value of imports from India was ____ than the value of British exports to India.


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Detailed Solution

The value of imports from India was less than the value of British exports to India.
Britain's trade surplus in India assisted in paying off the so-called "home charges." A trade surplus is a situation in which the value of exports is greater than imports. In the 19th century, British manufacturers took over the Indian market as food, grain and raw material exports from India to Britain and the rest of the world increased. 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. This is also known as a multilateral settlement system; it allows one country's deficit with another country to be settled by its surplus.
 
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