| Assertion [A] British rulers followed discriminatory tariff policy wherein Indian imports were made tariff free and heavy tariffs were imposed on the export of Indian handicrafts. |
| Reason [R] This facilitated trade and resulted in huge inflows of funds in India. |
A) Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A]
B) Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A]
C) Assertion [A] is true, but Reason [R] is false
D) Assertion [A] is false, but Reason [R] is true
Correct Answer: C
Solution :
Imposition of tariff resulted in high prices of Indian handicrafts which could not withstand increased competition of machine made goods produced in Britain.
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