A) Monopolizing the trade of raw goods wherever possible and selling them at high rates
B) Forcing Indian craftsman to produce quality products in fixed quantity and at fixed price
C) Free trade policy
D) Elimination of Indian traders from competition by every means
Correct Answer: C
Solution :
[c] From 1757 to 1857, the British followed various economic policies to enhance trade privileges and more importantly to exploit Indian economic resources. The first phase or the mercantile phase (1757-1813) was one when the East India Company completely monopolized trade and used its political power to dictate terms to the artisans of Bengal who were forced to sell their products at cheaper rates. The essence of mercantile capitalism was buying cheap and selling at higher prices, which the Company successfully achieved in these years. The second phase was that of Industrial Capitalism or Free trade (1813-1857). The Industrial revolution in England completely transformed Britain's economy and its relations with India. In this phase, India became the chief exporter of raw materials to British industries and also served as the main market to manufacture British goods. The industrial needs were the basic guide of British commercial policy. The Indian goods faced tough competition from machine made goods in this phase. The third and final phase of British plunder is called the era of Financial Capitalism. The British introduced roadways, railways, post and telegraph into India for their own commercial and political needs. As a result of the various investments made, the burden of public debt on India in-creased. India became a colony of the British in the true sense. Wealth drained from India played an important role in financing British capitalist development.
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