The question consists of two statements, namely, Assertion (A) and Reason (R). Use them to choose the correct alternative.

Assertion (A): During the British rule, India’s exports exceeded the imports leading to surplus of balance of trade.

Reason (R): The surplus of balance of trade was used for growth and development of India.

To evaluate the correctness of the assertion and reason, let us analyze the economic conditions in India during the British colonial rule:

Assertion (A): During the British rule, India’s exports exceeded the imports leading to surplus of balance of trade.
This statement is true. During the colonial period, India was a major exporter of primary products (such as raw silk, cotton, wool, sugar, indigo, and jute) and an importer of finished consumer goods. India's export trade generated a large export surplus, meaning the value of India's exports was greater than its imports.

Reason (R): The surplus of balance of trade was used for growth and development of India.
This statement is false. Although India had a substantial export surplus, this surplus did not lead to any flow of gold or silver into the country, nor was it used for the economic growth or developmental activities of India. Instead, the export surplus was drained out of the country to serve British interests. It was used to make payments for the administrative expenses incurred by the colonial government in Britain, expenses on wars fought by the British government, and import of invisible items (services). This phenomenon is famously known as the "Drain of Wealth" from India.

Since Assertion (A) is true but Reason (R) is false, the correct option is "A is true and R is false".