Indicate the volume and direction of trade at the time of independence.

The volume of foreign trade includes the quantities of goods and services which w ere being exported and imported. The direction of trade refers to the countries which were involved during British rule. The volume and direction of India’s foreign trade at the time of independence is as follows: During the regime of colonial government, India became an exporter of primary goods like raw silk, cotton, wool, sugar, raw jute etc., and an importer of finished consumer goods like ‘ cotton, silk and woolen clothes and capital goods like light machineries produced by the factories at Britain. Britain had maintained monopoly over India’s exports and imports. As a result, more than half of India’s foreign trade was restricted to Britain, while the rest was allowed with a few other countries like China, Srilanka, Iran, etc. The opening of the Suez Canal further intensified British control over India’s foreign trade.