Modern India Chapters

1. Expansion of British Power (Bengal, Mysore, Punjab etc.)2. Economic Impact of British Rule3. Socio Religious Movements in 19th 20th Centuries4. Freedom Struggle I5. The Revolt of 18576. Moderate Phase7. Extremist Phase8. The Gandhian Era

Economic Impact of British Rule in India

The British colonial rule had a deep and lasting impact on the Indian economy. The policies followed by the British government transformed India into a supplier of raw materials and a consumer of British goods.

1. Deindustrialization

The British policies led to the decline of traditional Indian industries, especially the handicraft sector.

  • Indian goods were heavily taxed in Britain while British goods entered India duty-free.
  • Artisans and weavers lost their livelihood due to machine-made British imports.

2. Commercialization of Agriculture

  • Farmers were forced to grow cash crops like indigo, cotton, opium instead of food grains.
  • This shift led to frequent famines and food insecurity.

3. Land Revenue Systems

  • Permanent Settlement: Introduced by Lord Cornwallis in Bengal (1793), fixed land revenue permanently, leading to exploitation.
  • Ryotwari System: Introduced in Madras and Bombay by Thomas Munro.
  • Mahalwari System: Introduced in North-West provinces by Holt Mackenzie.

4. Drain of Wealth

A term used by Dadabhai Naoroji to describe how British extracted India's wealth and sent it to England.

  • Profits from trade, salaries of British officials, and taxes were transferred abroad.
  • India became poor while funding the Industrial Revolution in Britain.

5. Stagnation of Indian Economy

  • No major investment in Indian industries or infrastructure for public welfare.
  • The railway was built to exploit resources and move troops, not for economic benefit of Indians.

Previous Year Questions

  • SSC CGL 2021: Who first raised the concept of 'Drain of Wealth'?
  • → Dadabhai Naoroji
  • RRB NTPC 2019: The Permanent Settlement was introduced in which region?
  • → Bengal
  • HSSC 2020: What was the primary motive of building railways in British India?
  • → To transport raw materials and troops
  • SSC CHSL 2020: Who introduced the Ryotwari system?
  • → Thomas Munro
  • UPSC Prelims 2018: Which sector was the worst affected by British industrial policies?
  • → Handicrafts and cottage industries
  • RRB ALP 2018: Commercialization of agriculture led to?
  • → Famines and reduced food grain production
  • SSC GD 2021: Mahalwari system was mainly practiced in?
  • → North-Western Provinces
  • HSSC JE 2019: Dadabhai Naoroji's famous work on British economic exploitation?
  • → Poverty and Un-British Rule in India
  • SSC MTS 2019: Which cash crop became important under British policies?
  • → Indigo
  • RRB Group D 2020: What was the effect of British land revenue policies?
  • → Peasants became landless and indebted

Conclusion

The British rule left India economically crippled. While it created a unified administrative structure and infrastructure like railways, the primary aim was exploitation of India's wealth and resources for British benefit.

StartPreparation