Question:
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The primary cause of India's recurring balance of payment surplus with Britain during the colonial periods was ‘Home-charges'. Reason R: ‘Home-charges' included expenses such as pension to British officers, interest on India's Public debt held in Britain and salaries paid in England.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The primary cause of India's recurring balance of payment surplus with Britain during the colonial periods was ‘Home-charges'. Reason R: ‘Home-charges' included expenses such as pension to British officers, interest on India's Public debt held in Britain and salaries paid in England.
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In colonial Indian economy, Home Charges were payments made to Britain and were an important part of the economic drain from India.
Updated On: May 22, 2026
- Both A and R are correct and R is the correct explanation of A
- Both A and R are correct but R is NOT the correct explanation of A
- A is correct but R is not correct
- A is not correct but R is correct
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The Correct Option is A
Solution and Explanation
Concept: During the colonial period, India had to make several payments to Britain. These payments were called Home Charges.
Step 1: Understand Home Charges.
Home Charges included pensions to British officials, interest payments on public debt held in Britain, salaries paid in England, and other administrative expenses. \[ \text{Home Charges} = \text{Payments made from India to Britain} \]
Step 2: Check Assertion A.
India often had an export surplus with Britain, but this surplus was used to pay Home Charges. Therefore, Assertion A is correct.
Step 3: Check Reason R.
Reason R correctly describes the components of Home Charges. These charges created a continuous financial drain from India to Britain.
Step 4: Check whether R explains A.
Reason R explains Assertion A because the need to pay Home Charges was an important reason behind India's recurring balance of payment surplus with Britain. Therefore, both A and R are correct and R is the correct explanation of A.
Step 1: Understand Home Charges.
Home Charges included pensions to British officials, interest payments on public debt held in Britain, salaries paid in England, and other administrative expenses. \[ \text{Home Charges} = \text{Payments made from India to Britain} \]
Step 2: Check Assertion A.
India often had an export surplus with Britain, but this surplus was used to pay Home Charges. Therefore, Assertion A is correct.
Step 3: Check Reason R.
Reason R correctly describes the components of Home Charges. These charges created a continuous financial drain from India to Britain.
Step 4: Check whether R explains A.
Reason R explains Assertion A because the need to pay Home Charges was an important reason behind India's recurring balance of payment surplus with Britain. Therefore, both A and R are correct and R is the correct explanation of A.
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