British Policy in India

British Policy in India: Transforming India’s Socio-Economic Landscape #

The policies of the British Empire made several changes in the Socio-Economic fabric of Indian society. Unlike previous invaders, the Britishers changed the very nature of the Indian market i.e. the Indian economy became heavily dependent on the demands and interests of the British Economy.

The Economic Impact Of British Policy In India: Mixed Economic Shifts in Colonial India #

The economic impact of British policy in India was mixed. On the one hand, the British introduced new technologies and industries to India, which helped to modernize the economy.

• Loss of Industries: The Charter Act of 1813 paved the way for One way free trade for British Citizens. Heavy tariffs were imposed on Indian textiles in Europe. This made Indian handicrafts uncompetitive in the International market. This caused the loss of the traditional handicraft industry in the Indian market. 
• Delayed Modern industrial development: The development of modern industries in India did not take place till the second half of the nineteenth century. The first cotton mill was established in 1853 and the first jute mill in 1855.
• Ruralization: The loss of traditional handicraft work and the absence of any other source of livelihood forced artisans to move back to the village. The artisans started looking towards agriculture to sustain their livelihood, increasing pressure on the land.
• The impoverishment of peasants: The newly introduced land revenue system by the British pushed peasants further into the vicious circle of poverty. The high tax burden on the peasants under the Permanent Settlement, Mahalwari, and Ryotwari systems made them vulnerable at the hands of the Moneylenders. 
• Commercialisation of Agriculture: The policies introduced by the British focused on the production of cash crops like cotton, jute, oilseeds, etc. It resulted in the shift of farmers from the production of indigenous crops to commercial crops which negatively impacted the Indian Economy and livelihood of farmers.
• Introduction of new lending class: New land revenue systems like Permanent settlement gave birth to a new lending community. The new community had no traditional ties with the land and needed more motivation to invest in the increased agricultural production. 
• Increased incidences of famine: The British economic policies caused reoccurrences of famine. The first of these famines occurred in western Uttar Pradesh in 1860-61 and cost over 2 lakhs of lives. These famines indicated the extent of poverty and starvation in India during this period.

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Conclusion #

British policies had a significant impact on the Indian Economy. The negative effect of such policies outnumbered the positive impacts. The unjust tax policy and decline of industries led to the collapse of the Indian market.