What was the importance of the Indian trade for the British?
1. Trade Surplus – Britain had a Trade Surplus with Indian. Britain used this Surplus to balance its trade deficit with other countries.
2. Home Charges – Britain’s trade Surplus in India also helped to pay the so called home charges that included private remittance home by British officials and traders, interest payments on India’s external debt and pensions of British officials in India.
3. Major Supplier of cotton – India remained a major supplier of raw cotton to British which was required to feed the cotton textile industry of Britain.
4. Supplier if indenture workers – Many indenture workers from Bihar, U.P., central India migrated to other countries to work in mines and plantations.
