Q. With reference to the socio – economic conditions on the eve of British conquest, which of the following statements is/are correct?
1. There were forced revenue collections from peasants.
2. India’s imports were higher than exports.
Select the correct answer using the code given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Even though the agricultural produce supported the rest of the society, a peasant’s own reward was miserably inadequate.  

  • They were forced to pay exorbitant amounts to the state, the zamindars, the jagirdars, and the revenue-farmers. But this worsened under British rule. 
  • On account of being self-sufficient in handicrafts and agricultural products, India did not import foreign goods on a large scale.  
  • On the other hand, its industrial and agricultural products were in good demand in foreign markets.  
  • Hence its exports were more than its imports; trade was balanced by import of silver and gold. India was known as a sink of precious metals. 

Source: Spectrum Modern India.