How did Britain's trade surplus from India help her to balance its other trade deficits?


(i) In 19th century British manufactures flooded Indian markets.
(ii) The value of British exports to India was much higher than the value of British imports from India.
(iii) Britain thus had a tradeturplus with India. Britain used this surplus to balance its trade deficits with other countries, that is with countries from which Britain was importing more than it was selling to.