The correct option is 2 and 3 only.
Explanation
The economic policies pursued by the colonial government in India were primarily concerned with the protection and promotion of the economic interests of Britain rather than the development of the Indian economy. These policies fundamentally transformed the nature of India's external trade.
Statement-wise Analysis
- Statement 1 is Incorrect: The restrictive policies had a profound impact on the structure of India's foreign trade. India, which was historically known for its finished goods and handicrafts, was reduced to a supplier of raw materials and an importer of finished industrial products.
- Statement 2 is Correct: The composition of trade was adversely affected. India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, and jute, and an importer of finished consumer goods like cotton, silk, and woollen clothes, as well as light machinery produced in British factories.
- Statement 3 is Correct: The colonial government maintained monopoly control over India's exports and imports. This monopoly, combined with high tariffs on Indian goods entering Britain and free entry for British goods into India, restricted the natural growth and volume of India's foreign trade, confining more than half of it to Britain alone.
Key Takeaway: Colonial trade policies transformed India into a net exporter of raw materials and a net importer of finished goods, adversely affecting the structure, composition, and volume of foreign trade.