Q: Examine critically the various facets of economic policies of the British in India  from mid-eighteenth century till independence. 2014 | 10

Introduction

From the mid-eighteenth century to independence, British economic policies in India aimed primarily at serving imperial interests. While modern infrastructure and institutions were introduced, these policies resulted in deindustrialisation, agrarian distress, and economic dependency.

Main Body

Various facets of economic policies of the British

1. Land revenue policies such as Permanent Settlement, Ryotwari, and Mahalwari were introduced to ensure a steady colonial income. 
• They led to the rise of absentee landlords, heavy taxation, and peasant indebtedness, weakening traditional agrarian structures.
2. Trade and industrial policies converted India into a supplier of raw materials and a consumer of British goods. 
• Restrictive tariffs and free import of British manufactures destroyed Indian handicrafts and textile industries, causing large-scale unemployment.
3. Drain of wealth occurred through home charges, profits, pensions, and interest on public debt. 
• eg : The Poverty And Unbritish rule in India 
4. Infrastructure like railways, ports, and telegraphs connected markets and aided administration but were primarily built to extract raw materials and move troops efficiently. 
• The guarantee system for railway investment burdened Indian finances further.
5. Monetary and fiscal systems were modernised but served colonial trade interests. Indian peasants and small traders had limited access to credit, and taxation remained regressive with little reinvestment in welfare.
6. Commercialisation of agriculture promoted cash crops for export such as indigo, cotton, and jute. 
• This increased vulnerability to market fluctuations and aggravated famine conditions due to neglect of food crops.
7. Industrial policy lacked protective measures for Indian enterprise. 
• Only under nationalist pressure in the early twentieth century did limited industrial development begin in sectors like textiles and steel.

Conclusion

British economic policies left India impoverished and underdeveloped. They created modern infrastructure but subordinated the Indian economy to British needs, resulting in structural distortions that persisted even after independence.