Economic Impact of British Rule in India - MIND MAP | Drishti IAS English

Summary

This 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.