British Economic Policy in India

British Economic Policy in India Impact: India’s Shift from Monopoly to Free Market (1813-1858) #

This phase started with the Charter Act of 1813 when the British lost the monopoly of trading in India. This phase continued till the British crown took direct control of territories in India in 1858. The mode of exploitation during this phase was Trade, thus it is also termed Colonialism of free trade. In this phase, India became a market for British manufactured goods, especially Textiles. At the same time, the export of raw materials from India also increased. 

Key Aspects: British Economic Policy in India Free Trade Phase Impact on India’s Economy #

The important features of this phase of British Economic Policy in India are as follows: 

• Integration of India with World Economy: With the introduction of the free trade policy, the Indian economy was integrated with the British and World Capitalist economy. 
• Transformation of Agrarian structure: The permanent Settlement and Ryotwari system of revenue collection were introduced which changed the agrarian structure of India.
• Last mile reach: Efforts were made to make British goods reach the interior villages and to make the movement of agricultural goods from villages smooth.
• Introduction of Modern Education: To provide cheap labour for the British administration, steps were taken to introduce modern education in India.
• Commercialization of agriculture: The decline of handicraft industries and commercialization of agriculture caused poverty, unemployment, and recurring incidence of famine.

Conclusion #

This phase turned India into a market for cheap British textiles and a supplier of raw materials for industries in Europe. It was another step by the Britishers for the economic plunder of India.