Which of the following statements are correct ? 1. British 'trade surplus' with India in the nineteenth century meant that the value of British exports to India was much higher than the value of British imports from India. 2. India played a crucial role in the late-nineteenth-century world economy by helping Britain balance its deficits. 3. Britain grew opium in India and exported it to China and, therefore, for a while after the 1820s, opium became India's single largest export. 4. The nineteenth century saw export of Indian raw materials decline, and that of manufactured goods increase. Select the answer using the code given below :

The official correct answer is Option D (1, 2, and 3 only). Here is the breakdown:

• Statement 1 is correct: During the 19th century, Britain maintained a 'trade surplus' with India, meaning the value of British manufactured exports to India far exceeded the value of imports from India.
• Statement 2 is correct: This surplus was used to settle Britain's trade deficits with other countries (multilateral settlement) and to pay 'Home Charges,' including pensions and interest on debt.
• Statement 3 is correct: The British forced opium cultivation in India for export to China to finance tea imports. By the mid-19th century, opium was a leading Indian export.
• Statement 4 is incorrect: The 19th century was marked by 'de-industrialization.' India transitioned from being an exporter of manufactured textiles to an exporter of raw materials (cotton, indigo) and an importer of finished British goods.