Answer: 

Introduction:

The economic policies of the British in India from the mid-eighteenth century till independence had a profound impact on India’s economy and society. These policies were primarily shaped by the interests of the British Empire and aimed at fulfilling its economic and political objectives.

Enroll now for UPSC Online Course

Body:

Listed below are various facets of economic policies of the British in India from mid-eighteenth century till independence:

• Revenue administration:
  • The British introduced various land revenue systems in India, such as the Permanent Settlement, Ryotwari, and Mahalwari systems.
  • While these systems aimed to streamline revenue collection, they often resulted in the exploitation of farmers and the concentration of wealth among a few landholders.
  • High revenue demands and rigid collection methods led to famines, rural indebtedness, and the impoverishment of the peasantry.
• Trade and commerce:
  • British economic policies promoted the export of raw materials from India to Britain and the import of British manufactured goods to India.
  • This led to the transformation of India’s economy from a self-sufficient, diversified economy to a colonial economy dependent on the British.
• Deindustrialization:
  • Indian handicrafts and small-scale industries could not compete with machine-made British goods, leading to widespread unemployment and the decline of local industries.
  • This process of deindustrialization severely undermined the economic self-sufficiency of India.
• Railways:
  • While the railways contributed to the integration of the Indian market and improved transportation, their primary purpose was to serve British economic interests.
  • Moreover, the railways were financed through Indian resources, adding to the drain of wealth from India.
• Drain of wealth:
  • This included the repatriation of profits by British companies, salaries and pensions of British officials, and interest payments on loans taken for infrastructure projects like railways.

Conclusion:

These policies resulted in the impoverishment of the Indian peasantry, deindustrialization, and a drain of wealth, which severely hampered India’s economic development. While there were some positive outcomes, such as the development of infrastructure, these benefits were largely outweighed by the detrimental consequences of British economic policies.