The devastating effects of British rule on Indian economy

Nauman Nazir
3 min readFeb 9, 2022

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Majority of intellects in Pakistan firmly believe the British raj — when the Britain ruled over India from 1857 to 1947 — was a flourishing period. Their views depict their lack of knowledge about history. Not knowing that the affects of British rule on Indian economy was very negative!

Britain destroyed every aspect of Indian culture and economy, especially those which are related to Muslims.

India was more prosperous than it was during and before the British Raj. In this article, we will explain how Britain looted India, what were the affects of British rule on the Indian economy, and how she destroyed its economy, architecture, education, religion & culture.

Britain in India:

Britain set its foot in India in 1600 C.E. Akbar’s son, Jahangir, was ruling India during that time. Whether Jahangir was a corrupt and irresponsible ruler is a different story. History proved that allowing Britain to form trade with India and its company — the East India Company — to enter the land was his biggest blunder.

Britain Destroying Indian Industry:

At the time Britain step foot on India, the country was taking part with 23% of global GDP.

By the end of the eighteenth century, Britain was shifting its method of earning from the land to the industry. India was a mouth-watering economy then. She was a country which was as manufactured as it was agricultural. For Britain’s industry and economy to work effectively, it was important for it to deindustrialize India.

A first look at the history gives clear thought of the British’s motive to loot all the riches of the land. As an implication, it was mandatory for Britain to make India its colony. Jawaharlal Nehru, India’s first Prime Minister, stated this observation in his book, the discovery of India.

Affects on poverty:

Britain applied every policy to destroy Indian industry and decay its agriculture. The idea was to lower her status from a manufacturing country to an agricultural country. They (the British) not only looted the land’s treasures but also the word ‘loot’ in Hindi dictionary along with the word’s genuine spirit.

Poverty was on the rise in India because of British despotic policies. Britain was successful in lowering India to the point she is today.

Britain sought to destroy the Indian economy

Colonial Britain tried its every effort to destroy Indian economy. The imposed tariffs and duties on Indian products aided her in achieving those goals.

  • Britain left India with less than 4% share of global GDP.
  • India became world’s biggest purchaser of Britain’s finished goods
  • Indian share in global exports dropped to less than 2% from 27%.
  • India was exporting raw material and importing finished goods from Britain.
  • Violence and racism was reality of colonialism.
  • Railways and roads were built to serve the British.
  • British aid to India was 0.4% of its total GDP.

Indians were purchasing products from Britain at higher prices for the products they were producing at lower costs.

Pakistan follows similar practice. They locally produce goods at lower rates and buy goods after those are given a brand-name at very higher prices.

Interestingly, Pakistani people brag about using ‘foreign goods’ and look down upon local people because they use ‘home-made products.

Destroying Indian Culture:

- Ethnic, racial & religious tension directly resulted from the British rule.

- Most of the Islamic schools-of-thoughts are formation of the era of the British raj.

- British soldiers engraved their names on historical monuments, such as the Red Fort of Lahore, to ruin the archeological remains.

Should the people of then India, which have now decomposed into Pakistan, India and Bangladesh, demand reparation? I believe Britain should return the treasures they looted along with an apology.

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Nauman Nazir
Nauman Nazir

Written by Nauman Nazir

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A writer who have been professionally writing since 2015 for blogs. Nauman is a post graduate in marketing. He likes to write on lifestyle and technology.

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