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Indian economy During Colonialism

Mani Krishna

Indian land had been invaded and ruled by many outsiders, amongst which the British regime was considered very important. British East India Company entered India in 1757 through the Battle of Plassey and the Crown took the complete administration during 1858. Politically, India was under the British rule for around two centuries and the Indian economy was significantly influenced during their rule. Indian culture and administration too underwent a major transition during British rule.

 

Other invaders, prior to British, created a feeling of differentiation between Indian citizens and themselves as a separate class. However, British identified themselves as citizens of India. Thanks to this attitude, British followed an administrative set up in India to develop their motherland at the expense of India.

 

Further, the spread of colonialism of the British in South East Asia also led to another problem. They transported Indians to other neighbouring countries like Sri Lanka as labourers to work in their plantations. However, when they left this sub-continent, they left several of these issues unsolved. Still today, these Indian labourers in Sri Lanka face an identity crisis. In Sri Lanka they are considered as Indians; and in India these labourers are considered as Sri Lankans.

 

Economic activities of their colonies including India were tuned to the interests of Great Britain. During British rule, Indian handicrafts contribution declined and the economy was ruralized. British also introduced new land mechanism to enable them to gain more land revenue in order to suit their imperialistic needs. They adopted an industrial process transition through colonial capitalism.

 

The colonial imperialistic attitude of the British rule has yielded India an unique economic problem, that is, modernisation with under-development. Though British provided peace in this country, they failed to extend property. The only remarkable economic fruit British rulers left for India was in the field of Indian transport system, especially that of railways and roadways. However, this benefit was only incidental. The ultimate motive of all the enterprise during British rule was to serve the benefit of the Great Britain and not that of India. Thus, when British left India in 1947, Indian economy depicted a paradoxical dual picture of modernisation and under-development.