BRITISH ECONOMIC POLICY AND ITS

IMPACT ON INDIA
INTRODUCTION
 The economic policies imposed by the British crippled
the Indian Economy.
 The British conquerors were entirely different from the
previous conquerors. Through laws and administrative,
economic and fiscal policies, the British Government in
England and Company’s Administration in India used
their powers to the advantage of British manufacturers
and to the detriment of the Indian socio- political and
economic fabric.
PHASES OF ECONOMIC POLICIES IN INDIA
 The Mercantilist Phase (1757- 1813)

 The Industrial Phase (1813- 1858)

 Finance Colonialism (1860 and after)

 DISRUPTION OF ECONOMY
 RUIN OF VILLAGE TRADE AND CRAFT
 IMPOVERISHMENT OF THE PEASANTRY
 RUIN OF OLD ZAMINDARS
 STAGNATION AND DETERIORATION OF
AGRICULTURE
 DEVELOPMENT OF MODERN INDUSTRIES
IMPACT OF BRITISH POLICIES ON INDIAN ECONOMY

 RUIN OF FLOURISHING TRADE AND

INDUSTRY
 EXPLOITED INDIANS IN ALL FIELDS
 THE INDIAN ECONOMY REMAINED
NEITHER TRADITIONAL NOR MODERN
 OCCURRENCE OF FAMINES
DRAIN OF WEALTH THEORY
 DADA BHAI NAOROJI AND R. C. DUTT
CITED THIS THEORY FOR THE FIRST TIME
 DRAIN OF WEALTH REFERS TO A PORTION
OF NATIONAL PRODUCT OF INDIA WHICH
WAS NOT AVAILABLE FOR CONSUMPTION
OF HER OWN PEOPLE
CONSTITUENTS OF THE DRAIN
 HOME CHARGES

 REMITTANCES

 FOREIGN TRADE