Economic Impact of British Rule in India - MIND MAP | Drishti IAS English
Summary
TLDRThis episode of the Mind Map program explores the economic impact of British rule in India, detailing the phases of economic exploitation, including commercial capitalism, industrial capitalism, and financial capitalism. It discusses the impoverishment of peasants, deterioration of agriculture, destruction of industries, and the late development of modern industry. The video also highlights critics like Raja Ram Mohan Roy, Dadabhai Naoroji, and G. Subramanya who opposed British economic policies, and concludes with practice questions on economic critics of colonialism in India.
Takeaways
- 🏛️ The British Empire's establishment in India led to a transformation of its economy into a colonial one, with the Indian economy's nature and structure determined by British economic needs.
- 🛑 The economic exploitation of India by the British occurred in three phases: commercial capitalism, industrial capitalism, and financial capitalism, each with distinct objectives and impacts.
- 💸 Commercial capitalism involved the British acquiring a monopoly on trade with India, leading to large-scale wealth extraction and the exploitation of Indian weavers and artisans.
- 🏭 Industrial capitalism, starting with the Charter Act of 1813, aimed to use India as a market for British manufactured goods and a source of raw materials, causing a sharp increase in raw material exports.
- 🚂 Financial capitalism marked an era of foreign investments in India, with the construction of railways, banking, post, telegraph services, coal mining, and shipping initiated during this period.
- 📉 British policies resulted in the impoverishment of peasants due to high rents, illegal dues, and exploitative tax collection methods, leading to the deterioration of agriculture.
- 🌾 The commercialization of agriculture led to the cultivation of specialized crops for national and international markets, but the increased production did not benefit cultivators and was monopolized by Europeans.
- 🏗️ The destruction of Indian industries like textiles, shipbuilding, and steel to promote British machine-made products resulted in de-industrialization and large-scale unemployment.
- 🚢 The Charter Act of 1813 enabled one-way free trade, flooding Indian markets with cheap British imports and making it difficult for Indian products to compete in European markets.
- 🏭 The lack of industrialization in India, despite the loss of traditional livelihoods, led to de-industrialization while Europe experienced the Industrial Revolution, impacting Indian artisans and handicraftsmen.
- 🗣️ Critics of British economic policies in India, such as Raja Ram Mohan Roy, Dadabhai Naoroji, and G. Subramanya, highlighted the negative impacts of colonial policies on India's economy and the drain of wealth from the country.
Q & A
What was the primary objective of the British during the period of commercial capitalism in India?
-The primary objective of the British during the period of commercial capitalism was to acquire a monopoly of trade with India against all other European trading companies.
How did the Charter Act of 1813 change the economic relationship between Britain and India?
-The Charter Act of 1813 marked the beginning of industrial capitalism and colonialism of free trade, where India was to serve as a market for British manufactured goods and a source of raw materials like cotton and food grains.
What were the main features of the financial capitalism stage in India?
-The financial capitalism stage was characterized by the expansion of British investments in India, including the construction of railways, banking, post, and telegraph services, coal mining, and shipping.
How did the British policies contribute to the impoverishment of peasants in India?
-British policies such as the permanent settlement, ryotwari system, and mahalwari system restructured the old agrarian system to extract maximum profit, leading to the impoverishment of peasants who faced high rents, illegal dues, and exploitative tax collection.
What was the impact of British policies on the agricultural sector in India?
-British policies led to the deterioration of agriculture, with increased burdens on the sector without any development or modernization. This resulted in stagnation and a perpetually low level of productivity.
How did the commercialization of agriculture affect the Indian farmers?
-The commercialization of agriculture led to the cultivation of specialized crops for sale in national and international markets. However, this did not benefit the cultivators, who instead faced exploitative means of product action.
What was the effect of British policies on Indian industries?
-British policies led to the destruction of Indian industries such as textiles, shipbuilding, and steel, promoting British machine-made products and causing large-scale unemployment and a heavy drain of wealth.
Why did the modern industry in India develop late during the British rule?
-The loss of traditional livelihoods was not accompanied by a process of industrialization in India, leading to de-industrialization at a time when Europe was experiencing the Industrial Revolution, which acted as a major setback for Indian artisans and craftsmen.
Who were some of the main critics of British economic policies in India?
-Some of the main critics of British economic policies included Raja Ram Mohan Roy, Dadabhai Naoroji, R.C. Dutt, and G. Subramanya Aiyar, who highlighted the negative impacts of British rule on India's economy and society.
What was the 'drain of wealth' theory proposed by Dadabhai Naoroji?
-The 'drain of wealth' theory proposed by Dadabhai Naoroji stated that Britain was draining India's wealth and resources, which were not available to Indians for consumption, leading to India's economic backwardness.
Outlines
📚 Economic Impact of British Rule in India
This segment delves into the profound economic changes India underwent under British colonial rule. It begins with the establishment of the British Empire, which significantly altered India's economic, social, and political landscape. The British policies steered India's economy towards a colonial model, with its structure and nature being dictated by British economic needs. The script outlines three distinct phases of economic exploitation: commercial capitalism, where the British aimed to monopolize trade with India; industrial capitalism, marked by the Charter Act of 1813, where India became a market for British manufactured goods and a source of raw materials; and financial capitalism, characterized by foreign investments and the construction of infrastructure in India. The paragraph also discusses the detrimental economic impacts of British policies, including the impoverishment of peasants, deterioration of agriculture, commercialization of agricultural practices, destruction of indigenous industries, and the one-way free trade that flooded Indian markets with cheap British goods.
🔍 Critique of British Economic Policies in India
The second paragraph focuses on the critique of British economic policies in India, highlighting the voices of prominent Indian critics such as Raja Ram Mohan Roy, Dadabhai Naoroji, and G. Subramanya. These critics argued that British rule led to the de-industrialization of India, with the destruction of industries like textiles, shipbuilding, and handicrafts, causing widespread unemployment and a significant outflow of wealth. The paragraph also discusses the late development of modern industry in India due to the loss of traditional livelihoods without a corresponding industrialization process, which was a major setback for Indian artisans and craftsmen. The critics pointed out that India's economic backwardness was a direct outcome of the colonization of its economy. The segment concludes with a mention of practice questions related to the economic critics of colonialism in India and an invitation to examine the various facets of British economic policies critically.
Mindmap
Keywords
💡Economic Impact
💡Commercial Capitalism
💡Industrial Capitalism
💡Financial Capitalism
💡Impoverishment of Peasants
💡Deterioration of Agriculture
💡Commercialization of Agriculture
💡De-industrialization
💡One-way Free Trade
💡Late Development of Modern Industry
💡Economic Critics
Highlights
Introduction to the economic impact of British rule in India, detailing the transformation of India's economy into a colonial one.
Phases of economic exploitation: Commercial capitalism marked by British efforts to monopolize trade with India.
The impact of British policies on Indian weavers and artisans due to increased export of Indian textiles.
Industrial capitalism phase, starting with the Charter Act of 1813, aimed at making India a market for British goods.
Financial capitalism characterized by British investments in India, including railways, banking, and mining.
Economic impact of British policy: Impoverishment of peasants due to exploitative agricultural practices.
Deterioration of agriculture under British rule, with increased burden and lack of modernization.
Commercialization of agriculture leading to the growth of specialized crops for international markets.
Destruction of Indian industries like textiles and shipbuilding to promote British machine-made products.
One-way free trade policy post-1813, allowing cheap British imports to flood Indian markets.
Late development of modern industry in India due to the de-industrialization caused by British policies.
Criticism of British economic policies by Indian reformers like Raja Ram Mohan Roy and Dadabhai Naoroji.
Drain of wealth theory by Dadabhai Naoroji, highlighting Britain's extraction of India's wealth.
G. Subramanya's argument on India's economic backwardness as a result of colonialization.
Comprehensive nationalist critique of British rule by leaders like Gopal Krishna Gokhale and Surendra Nath Banerjee.
Practice questions on economic critics of colonialism in India, including a prelim's question on notable critics.
Mains question examining the various facets of British economic policies in India from the mid-18th century to Independence.
Transcripts
foreign
[Music]
welcome to mind map program today's
topic of discussion is economic impact
of British rule in India first of all we
will discuss about the introduction
phases of economic exploitation economic
impact of British policy major critics
of British economic policies and
practice question
first of all let's have a look at the
introduction of the topic the
establishment of the British Empire in
India transformed India's economic
social and political scenario in the
economic context the British policies
led to Rapid transformation of India's
economy into a Colonial economy the
nature and structure of Indian economy
was determined by the needs of the
British economy the result of this
subordination of the Indian economy to
the interest of British trade and
Industry were many and varied
now phases of economic exploitation
first is commercial capitalism this
period is also known as period of
merchant capitalism the basic objective
of britishers during this period was to
acquire Monopoly of trade with India
against all other European trading
companies in this phase there was
large-scale reign of wealth from India
there was no large-scale import of
British manufacturers into India rather
there was an increase in export of India
textiles this had huge impact on the
Weavers and other Artisans as they were
exploited and were also forced to
produce for the company NeXT is
industrial capitalism the stage is also
termed as colonialism of free trade it
started with the Charter Act of 1813 and
continued till 1860s India was to serve
as a market for the ever increasing
output of British manufactured goods
especially textiles at the same time the
new capitalist in England needed from
India exports of raw materials
especially cotton and food grains the
export of raw materials was increased
sharply to meet the dividends of the
company and profits of British merchants
rapid expansion of Industries coupled by
intensive commercialization of
Agriculture for producing raw materials
for the British Industries was the main
feature of industrial capitalism next is
financial capitalism the third stage is
often described as the era of foreign
investments and international
competition for colonies the changing
Dynamics in the world affairs such as
revolution in the means of
transportation emergence of other
countries which challenged British
Supremacy Etc impacted the British
policies this resulted in expansion of
British investment in India the
construction of Railways banking post
and Telegraph Services coal mining
shipping were initiated during this
period
now moving on to economic impact of
British policy first is impoverishment
of Peace entry the comment was only
interested in maximization of rents and
in securing its share of Revenue
policies like permanent settlement
settlement and mahalwari system were
introduced which restructed the old
agrarian system their main aim was to
extract maximum profit and since the
rural population was highly dependent on
agriculture its destruction also led to
impoverishment of peasants peasants also
had to deal with high rents illegal dues
beggar exploitative means of tax
collection under developed agricultural
methods Etc all this led to extreme
exploitation of the peasants who
suffered under the triple burden of
government zamindar and the money
lenders next is deterioration of
Agriculture with exploitative policies
the burden on the agriculture increased
despite which no development or
modernization was done for the sector
the cultivated had neither the means nor
any incentive to invest in agriculture
apart from that since many other
industries were destructed which
resulted in overcrowding of Agriculture
thus due to all these reasons there was
no development and stagnation in the
agricultural sector which led to
perpetually low level of productivity
commercialization of Agriculture with
consolidation of power in the British
hands the agricultural sector became
highly commercialized certain
specialized crops began to be grown for
sale in National and even International
markets products like cotton jute oil
seeds sugarcane tobacco are some
examples perhaps the commercialization
phase reached its peak with introduction
of Plantation of tea coffee Indigo and
rubber the plantation industry was
completely monopolized by the Europeans
even when the production was increased
rapidly it did not benefit the
cultivators rather they had to face
exploitative means of product action
destruction of Industries Indian
industries were steadily destroyed to
promote British machine made products
the destruction of Industries like
textile shipbuilding and steel industry
is an example of the
de-industrialization of India after
agriculture cotton textile industry was
the biggest sector for providing
employment in India but the
discriminatory policies and constant
competition with British goods led to
its decline the flourishing shipbuilding
industry of Surat Malabar Bengal and
masulipatnam was crushed handicraft
industry also received a setback after
1835 when it had to compete with the
British machine made products all these
eventually led to large-scale
unemployment Exodus of population
destruction of indigenous craft and
heavy drain of wealth one-way free trade
the Charter Act of 1813 allowed one-way
free trade for British citizens as a
result cheap and machine made Imports
flooded Indian markets it was different
difficult for the native producers to
compete with British made products in
the local markets on the other hand
Indian products found it even more
difficult to penetrate the European
markets tariffs of nearly 80 percent
were imposed on Indian textiles and
Indian cloth also after 1820 Indian
exports were barred from the European
markets next is late development of
modern industry the loss of traditional
livelihood was not accompanied by a
process of industrialization in India
this resulted in de-industrialization of
India at a time when Europe was
witnessing Industrial Revolution this
acted as a major setback for Indian
Artisans and handicraftsmen when they
were already facing loss of patronage
and unemployment
now let's discuss about major critics of
British economic policies since the
beginning of the British rule their
economic policies were highly criticized
people like Raja Ram Mohan Rai dadabhai
naroji arshidad G subramanya were some
of the main critics of British economic
policies in the early 1830s Raja ramohan
Roy spoke against Colonial economic
policies and practices he was critical
of the tribute paid to Britain and was
concerned about the situation of
self-cultivating peasants later the
other by naroji spoke about the impact
of British policies on Indian economy in
1867 he propounded the drain of wealth
theory in which he stated that the
Britain was completely draining India RC
that also promoted the same Theory by
keeping it as a major theme of his book
economic history in India the reign of
wealth was a portion of India's wealth
and economy that was not available to
Indians for consumption Bhaskar pandoran
argued that the destruction of the
Indian genus industry in Maharashtra was
in India as a whole resulted in poverty
and misery of The Artisans g subramanya
a year was another critic of British
economic policies in his book some
economic aspects of British rule in
India 1903 he argued that India's
economic backwardness was an outcome of
the colonialization of the Indian
economy more comprehensive nationalist
critic of British rule in India emerged
from Mahadev gobindranade gopal Krishna
gokhale jeevi Joshi
and Surendra Nath Banerjee
now it's time for the practice questions
first is prelim's question who of the
following was or were economic critic or
critics of colonialism in India one the
other by naroji two g subramanya a year
three arcidat select the correct answer
using the code given below one only one
and two only two and three only or one
two and three and our Mains question
examine critically the various facets of
economic policies of the British in
India from mid 18th century till
Independence so that's all for today
stay tuned for the next episode thanks
for watching
[Music]
thank you foreign
[Music]
[Music]
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