Modern India-Economic Impact of British Rule

Modern India-Economic Impact of British Rule

The term “Economic Impact of British Rule”, refers to the worsening economic condition of India. This was witnessed when Britishers involved India and economically drowned the whole nation.

In view of the British Raj that introduced the colonisation in different territories in India left a severe impact on different aspects of India. The empirical aggression of the Britishers and their strong political control affected the economy of India to a greater extent. One of the sole political and empirical aims of the Britishers was to economically drain India and take possession of the financial richness of India. The greediness and power-hunger of the Britishers have led them to demolish the financial prosperity of India and utilise the abundant assets like lands, trade networks, locations that are naturally rich.

The beginning of Economic instability in the British Rule

The British Rule in India has led to various terrible economic consequences that have been considered quite alarming. After conquering the major territories of India and attaining central power in the governing system of India, the Britishers developed several policies for their own advantages that would help them in the attainment of valuable possession and economy of India. The Britishers developed systematic programs and procedures for exploiting the economic richness of India. In addition, “Economic Impact of British Rule” succeeded in making India an economic colony for industrial England. The Britishers forced India to commercialise the agricultural sectors and only permitted growing certain raw materials and cash crops that will be beneficial for the industries of Britain. Moreover, these malpractices resulted in enhanced pressure on agricultural and other landforms and the agricultural sector was over-burdened resulting in upsetting the economic set-up of the distinct villages in India. These actions soon made India known as a net importer rather than a net exporter. In fact, the trade was monopolised in India with different trade policies and procedures that were planned by the Britishers. These selfish initiatives have critically harmed and damaged the economic structure and base of India. The Britishers ruling through a certain period introduced new policies, that would be helpful for succeeding their deeds of financial exploitation of India. The British rulers presented a wide range of commercial crops like coffee, tea, opium, indigo, jute, cotton, rather than food crops for their greedy intentions. The concept concerning transferability of land was also introduced by Britishers as a form of crippling the economy of India. As a part of their cruel intention, these initiatives adhered to by the Britishers demolished the economical riches of India.

The direct economic impact of British Rule

The wrongdoing of the Britishers, concerning continuous economic exploitation and selfish attempt to develop the British revenue through obtaining the economic sources, has genuinely impacted the Indian economy. The revenue systems introduced by the Britishers enabled the rich peasant, Mahajan, Zamindar, or money lenders to take possession of the lands of poor farmers. Some of the British rulers have introduced merciless means to collect taxes from every sector of civilians and the tax volume was sky-high. “Economic Impact of British Rule” was observed through the few conditions in India, like high taxation, the drain of valuable materials and wealth to Great Britain, indigenous industries decay as well as backward agrarian structure which resulted in the agricultural stagnation. These horrific incidents were all part of the “Economic Impact of British Rule”. In addition, the economic policies established by the Britishers prevented the economic progression of India and led the common civilians of India towards extreme poverty. Thus, through these manners, the colonial economy of India stagnated at a low level of the economy. The traditional economy was wholly disrupted by the newly introduced economic policies by the British rulers. These newly developed economic policies only made the Britishers richer but the financial development confronted many challenges through the implementation of these policies. The carrying away the wealth of India and exploiting the resources of India as part of the tribute was a grave “Economic Impact of British Rule”. In this concern, the quick and sudden collapse in the handicrafts industry of India in both rural and urban regions of India has weakened the economic condition of the artisans and craftsmen. The invasion of the Britishers and the British-made policies led to the destruction of Indian industries like cotton textile, handicrafts, and artisan industries. Moreover, the development of the Indian railway made it easy for the British manufacturers to uproot the Indian industries situated in the rural and urban regions. This completely brought havoc to the core economic development of India and this was in fact a potential “Economic Impact of British Rule”. The rise of the new landlordism and demolition of old Zamindars significantly changed the economic wealth of India that was associated with the lands. The attainment of geographical location with natural resources for their own benefits has also collapsed the internal resources of India. This was indeed a strong and quick blow by the Britishers to the economic prosperity of India. These heinous attempts of the Britishers have impacted the economic and monetary base of India in various ways. 


The British Rule in India through their attempt to commercialise the different economically rich industries of India has destroyed the economy in India. The British invasion has demonstrated new rules and policies for acquiring the wealth of India in a variety of ways. From introducing the land settlement acts to financial exploitation, Britishers have paralysed the Indian Economy.