British Colonial Rule · 2020. 7. 13. · British Colonial Rule The famous Kohinoor diamond has been doing rounds in the news. It was a prized possession of pre-colonial India which

British Colonial Rule

The famous Kohinoor diamond has been doing rounds in the news. It

was a prized possession of pre-colonial India which the British took

with them on their way back home. The talks of taking it back have

caused a stir in the recent past. However, it forms a very small fraction

of what our colonizers took away. As a consequence, our country was

in a grim state when they left. This forms the basis that governs our

current policies and future prospects. 

The Pre-Colonial State

Before the advent of colonial rule, India was a self-sufficient and

flourishing economy. Evidently, our country was popularly known as

the golden eagle. India had already established itself on the world map

with a decent amount of exports. Although primarily it was an

agrarian economy, many manufacturing activities were budding in the

pre-colonial India.

Indian craftsmanship was widely popular around the world and

garnered huge demands. The economy was well-known for its

handicraft industries in the fields of cotton and silk textiles, metal and

precious stone works etc. Such developments lured the British to

paralyze our state and use it for their home country’s benefits.

Browse more Topics under Indian Economy On The Eve Of Independence

● Agricultural Sector

● Industrial Sector

● Foreign Trade

● Demographic Condition

● Occupational Structure

● Infrastructure

India: The British Colony

( Source:

Wikipedia)

The British came to India with the motive of colonization. Their plans

involved using India as a feeder colony for their own flourishing

economy back at Britain. This exploitation continued for about two

centuries, till we finally got independence on 15 August 1947.

Consequently, this rendered our country’s economy hollow. Hence, a

study of this relationship between the colonizers and its colony is

important to understand the present developments and future prospects

of India.

The colonial rule is marked with periods of heavy exploitation. The

British took steps that ensured development and promotion of the

interests of their home country. They were in no way concerned about

the course of Indian economy. Such steps transformed our economy

for the worse- it effectively became a supplier of raw materials and a

consumer of finished goods.

The colonial kings robbed India of education, opportunities etc.

reducing Indians to mere servants. Undoubtedly, they never tried to

estimate colonial India’s national and per capita income. Some

individuals like – Findlay Shirras, Dadabhai Naoroji, William Digby,

V.K.R.V. Rao and R.C. Desai tried to estimate such figures.

Although the results were inconsistent, the estimates of V.K.R.V. Rao

are considered accurate. Notably, India’s growth of aggregate real

output was less than 2% in the first half of the twentieth century

coupled with a half percent growth in per capita output per year. By

and large, India faced a herculean task to recover from the blows that

two centuries of colonial rule landed on its economy.

Solved Example for You

Q: Name some individuals who tried to estimate colonial India’s per

capita income.

Ans: Some individuals like – Findlay Shirras, Dadabhai Naoroji,

William Digby, V.K.R.V. Rao and R.C. Desai tried to estimate such

figures. Although the results were inconsistent, the estimates of

V.K.R.V. Rao are considered accurate. An estimate was the best that

could be calculated. The estimate was that colonial India’s growth of

output was less than 2%.

Agricultural Sector

Did you know that the deaths due to starvation alone during British

rule are estimated to be between 15 to 29 million? Such numbers

indicate the adversities of colonial India. The pre-colonial India was

primarily producing two crops– rice and wheat. Despite this, it was

self-sufficient and sustainable. The incidence of colonization forced

changes in the agricultural sector such as commercialization. 

The Pre-Colonial Scenario of Agricultural Sector

During the pre-British era, a major part of India’s population was

dependent on agriculture. The farming technologies and irrigation

facilities were not satisfactory. However, agriculture in villages was

self-sustaining and independent.

The village communities either purchased or consumed the raw

materials and articles directly. Consequently, starvations and famines

were rare if not frequent. Of course, agricultural practices remained

primitive, but the villages functioned independently and were

self-sufficient. All of this went for a toss when the Britishers set feet

on the Indian subcontinent.

The Colonial Saga

Britishers were keen on establishing a monopoly in India. They saw

India as a means to drive their home country towards a state of

unmatched power. Colonisers drew out every ounce of Indian resource

and every drop of Indian blood for their selfish motives. Such was the

state of exploitation.

During the British rule also the Indian economy remained agrarian.

Rough estimates claim that about 85% of the economy derived their

livelihood directly or indirectly from agriculture. Though, unlike the

pre-colonial India, the feature of self-sufficiency vanished in the

colonial state. This led to various famines which the colonizers paid

no heed to provided it didn’t affect their profit margins. Effectively,

the agricultural sector continued to experience deterioration and

stagnation, particularly marked by low levels of agricultural

productivity.

Stagnation of Agricultural Sector during British Rule

The Indian agricultural sector, which supported almost the entire

economy, went towards stagnation. There was a negligible

introduction of reforms to ensure an increase in productivity. On the

contrary, the Britishers continued to extract profits which broke the

knees of Indian agricultural sector.

The major cause of this sorry state of Indian agriculture was the

various land settlement systems of the colonial government. The

highlight of this was the zamindari system which was practiced in the

then Bengal presidency. Under this, the majority of profits went to the

zamindars instead of the cultivators, ultimately filling up the pockets

of their colonial bosses.

Just like their colonial masters, the zamindars did nothing to improve

the state of agriculture. They were only concerned with collecting rent

despite the economic condition and the plight of the cultivators.

However, the revenue settlement policy particularly fuelled this

ruthless nature adopted by the zamindars. Under this, the rent can be

paid until a fixed date, failing which their colonial masters would take

away all their rights.

Other Factors

Agricultural technologies remained primitive with no efforts to

improve conditions from the British side. Even after the introduction

of fertilizer technology farmers used natural manure, which resulted in

low yields. This coupled with lack of proper irrigation facilities

aggravated the misery.

The motive behind agricultural activities shifted from

self-sustainability to commercialization focused upon the increase of

profits of colonials. As a result, there was an increase in the yield of

cash crops, but it helped the farmers in no way. Farmers were now

mass producing cash crops instead of food crops, which were

ultimately used for the benefit of British industries. These cash crops

include cotton, jute, oilseeds, sugarcane, tobacco etc.

Additionally, at the time of partition, a large portion of fertile and

highly irrigated land went to Pakistan, especially the jute producing

areas that went with East Pakistan (now Bangladesh). Hence, the jute

industry received a heavy setback. By and large, the Britishers further

added to the plight of Indian agricultural system and left with an

enormous task ahead of us.

Solved Question for You

Q: What was the main interest of the zamindars?

a. Collect Rent

b. Improve farmlands

c. Insure farmers from losses

d. All of the above

Ans: The correct option is “A”. The only interest the Zamindars had

was to collect the rent from the farmers. They did not particularly care

about the welfare of the farm or the farmer.

Industrial Sector

Are you aware of the fact that Britishers should be thankful to us for

their Industrial revolution? Notably, this industrial sector revolution

was given birth by de-centralizing the long-standing cloth production

industry of pre-colonial India. Indians were forced to import British

goods, which eventually gave support to their industries. 

The Pre-Colonial Industrial Sector in India

Before the rise of the British empire in India, it was known for its

handicraft industry. Evidently, this industry enjoyed worldwide

demand and was held in a high regard. Indian craftsmanship was

applauded in all parts of the world. The textile industry was among the

most important urban handicraft industry. Articles made up of wool,

cotton and silk were famous both inside and outside the country’s

boundaries.

Additionally, various metal industries, stone carving, marble work,

shipbuilding and tanning and leather industries were taking shape.

These industries potentially accelerated India’s growth, establishing it

on the world map. However, the British Raj took every step to ensure

that this wasn’t the case.

Industrial Sector under British Rule

On setting foot in India, the Britishers were looking to cripple out the

blooming industrial phase. With this in mind, they eyed the aforesaid

industries. In effect, they chalked out a plan to decentralize these

flourishing industries. This de-centralization served two purposes.

Firstly, Indian export volume was made dominant with raw materials

directed to Britain. Effectively, from a prominent exporter of

manufactured handicraft items, India was reduced to a mere exporter

of raw materials. Secondly, this ensured that there was a low level of

local supply to meet Indian demands for finished goods. Hence, India

was forced to turn towards British to meet its demands.

Furthermore, the downfall of aforesaid industries gave rise to

large-scale unemployment. Interestingly, colonials shrewdly erased

this unemployment, identically born as a result of their policies, by

offering employment for working in tea, coffee, indigo plantations and

jute industries, completely owned by the colonials. At the same time,

increased local demand was being profitably met by the British

imports.

During the second half nineteenth century, the modern industry began

taking shape in India at a very slow pace. The notable ones are cotton

and jute textile industries. However, the cotton industries confined to

western parts of India were controlled by Indians. Whereas, the jute

textile industries, controlled by foreigners, were limited to the Eastern

part (Bengal).

Further, some other industries started coming up after the second

world war for example- sugar, paper, cement, steel, and iron industry.

Notably, 1907 saw the incorporation of the Tata Iron and Steel

Company (TISCO).

Other Factors

Also, there was a dearth of capital goods industries. These industries

are responsible for producing machines which in turn produce

consumption goods. In essence, these are essential from the

manufacturing point of view. Although there was an establishment of

some units, the slow development could never fill the void of the

textile industry.

This coupled with minimal operation of the public sector ( railways,

power generation, communications, ports and some other

departmental undertakings) defined the sorry state of Indian industrial

sector under the British.

The Colonials continued pacifying their interests by setting up

industries like jute, tea, coffee plantations etc. taking advantage of a

rich geographical diversity of their colony. Conclusively, the British

exploitation spread rapidly to all sectors of India and the industrial

sector was among the ones worst affected.

A Solved Example for You

Q: Which of the following formed the backbone of Indian industrial

sector before colonization:

A. Steel and Iron

B. Cement

C. Urban handicrafts

D. None of the above

Ans: The correct answer is ‘C’. Pre-colonial India was known for

excellent craftsmanship and saw high demands for outputs from the

urban handicraft industry.

Foreign Trade

Before the colonial period, India was a big player in the foreign trade.

Having established itself well on the world map, pre-colonial India

was blooming with opportunities. At the beginning of 19th century,

the share of India in the world economy was around 20% which was

steadily increasing. By the time British left India the share was

reduced to around 4%. Thus the colonial rule paralyzed the foreign

trade also by a large proportion. 

Foreign Trade in the 17th and 18th Century

Pre-colonial India enjoyed a worldwide market for its manufactured

products. The excellent levels of craftsmanship were held in high

regard and enjoyed a global reputation. Notable ones are handicrafts

and textile industries. Shawls and carpets from Kashmir and Amritsar,

silk sarees of Benaras and silk cloth of Nagpur are some examples.

Pre-British India also excelled in the artistic handicraft industry which

includes jewellery made of gold and silver, brass, copper and bell

metal wares, marble work, carving works in ivory, wood, stone,

artistic glassware etc. All of the above-mentioned items including

cinnamon, pepper, opium, indigo etc. constituted a major proportion

of exports from India. Effectively, India was exporting high quality

manufactured goods to European countries and owned a respectable

share in the world economy.

The Colonisation Effect on Foreign Trade

The Britishers aimed at diverting this large volume of trade for their

benefits. In the light of British era, the foreign trade of India with rest

of the world was cut off by the help of restrictive policies of

commodity production, trade and tariff. As much as half of the foreign

trade was restricted to Britain.

Before colonial period, India was exporting manufactured goods

which enjoyed worldwide demand. Under the colonial rule, India was

reduced to a supplier of raw materials like jute, cotton, indigo, wool,

sugar etc. and importer of finished consumer goods like silk and

woollen clothes and light machinery manufactured in the factories of

Britain. Additionally, the opening of Suez Canal intensified this

control of Britishers over Indian foreign trade.

The remaining volume of foreign trade was allowed with a handful of

countries namely China, Ceylon (Sri Lanka) and Persia (Iran).

Interestingly, even this trade was heavily monitored by the colonials.

As a matter of fact, there was a large generation of export surplus

under the British Raj.

At the same time, this export came at the cost of low productions of

essential goods like clothes, food grains, kerosene etc. Resources were

heavily being used to produce items for export, leading to an acute

shortage of civil goods.

Additionally, there was no flow of gold or silver as a result of this

surplus. Ironically, this export surplus never made its way to India. It

was used to make payments for an office set up in Britain, war

expenses of the British and import of invisible items. Such brutalities

eventually led to the dawn of a rising foreign trade aspect of India.

A Solved Question for You

Q: How was the export surplus used?

a. To make payments to a British office and war

b. Import of invisible items

c. The welfare of Indian Industry

d. Both a and b

Ans: The correct option is “D”. Britishers never meant to use the

surplus for Indian interests. It was used to make payments for an

office set up in Britain, to meet war expenses and import invisible

items.

Demographic Condition

The motive behind colonization was to reduce India to a feeder

economy. Evidently, death, famines and misery was a common feature

of colonial India. Did you know the first official census by British was

recorded in as late as 1881? This was because the Britishers were least

interested in Indian demography. Notably, the demographic data

collected since 1881 clearly indicates the plight of Indian colony. 

Demographic Condition in Colonial India

As discussed, the colonial government took no interest in conducting a

census in India before 1881. In such a state, this job was taken up by

some individuals like Findlay Shirras, Dadabhai Naoroji, V.K.R.V.

Rao etc.

However, the demographic data collected was not consistent and

accurate. Notably, the estimates of V.K.R.V. Rao are considered the

best. It was not until 1881 that the colonials were interested in

studying Indian demography.

The colonial rule is characterized by two centuries of exploitation.

Mostly, the policies and steps taken aimed at fulfilling British

interests. Indian citizens were treated as slaves and servants. Under

their colonial masters, they were deprived of even basic human

amenities.

Thus hunger and deaths became a feature of colonial India. These

coupled with famines and influenza epidemic proved to be disastrous.

Evidently, the life expectancy in India hit an all-time low under the

colonial rule.

The Official Demographic Data

The first census revealed unevenness in Indian population growth.

Thereafter, a census was carried out every 10 years. Before 1921 India

was in the first stage of demographic transition. The second stage of

transition began in 1921. However, at this stage, both population

growth rate and the total population was very high.

Literacy levels were around 16 percent. Furthermore, the female

literacy rate was 7 percent. This means that a majority of the Indian

population was illiterate with even worse conditions for women. The

Colonials took no steps to change the scenario. On the contrary, they

emphasized on snatching education away from Indian slaves reducing

them to mere servants.

Colonial India was fighting to fill its empty stomach. This plight was

further aggravated by the scarcity of public health facilities. A hunger

stricken state was thus also a victim of rampant air and water-borne

diseases. Consequently, life expectancy was recorded to be 32 years!

Then again mortality rates were skyrocketing, with infant mortality

rate at 218 per thousand.

There are no official records about poverty. Though it can be clearly

concluded that widespread poverty was a common sight. Thus Indian

population had to live in abject poverty, constant fear of diseases,

starvation, and death. In a nutshell, the Indian demographic profile

during colonial rule was horrible for human standards.

A Solved Example for Reference

Q: When was the first official census of colonial India recorded?

a. 1799

b. 1830

c. 1890

d. 1881

Ans: The correct option is “D”‘. The first official census conducted by

the British government in India was in 1881, and this was also done

after much delay.

Occupational Structure

“I do not hesitate to say that half our agricultural population never

know from year’s end to year’s end what it is to have their hunger

fully satisfied.” This is the exact statement given by Sir C.A. Elliot, a

lieutenant governor of then Bengal presidency, to the British

government. This is the most compelling evidence of unemployment

and poverty in British hit India. Such words from the mouth of a

colonial official itself make us realize the adversities of British rule.

Let us take a look at the occupational structure before independence. 

Employment in India before Colonisation

Pre-British India was sprawling with opportunities. Popularly known

as the golden eagle, it was among the most important contributors to

the world economy. Pre-colonial India saw traders from all around the

world. Urban handicraft industry was a highlight of the then industrial

sector. But various other industries, although sparse, were arriving on

the scene. The sprawling industrial sector promised a bright future.

This gave birth to a number of employment alternatives.

People found employment in the industrial sector (dominated by the

urban handicrafts) and agricultural sector. Skilled craftsmen formed

the majority of these workers. Evidently, India was known for its

excellent craftsmanship. Additionally, individual villages were

self-sufficient and the village communities directly consumed these

outputs.

Some other occupations were- tending cattle, weaving, goldsmith,

pottery, washermen, carpentry, cobblers, surgeons etc. Sadly, all these

affirmations went away with the dust since the advent of the East

India Company.

Browse more Topics under Indian Economy On The Eve Of Independence

● British Colonial Rule

● Agricultural Sector

● Industrial Sector

● Foreign Trade

● Demographic Condition

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Occupational Structure of Colonial India

The colonial exploitation forced India to transform from a country of

combined agricultural and manufacturing activities to a colony

fulfilling Britain’s interests. The Colonials carried out a

decentralization of the Indian industries. This forced India to become a

mere exporter of raw materials to Britain.

The Indian economy under colonial rule became primarily agrarian.

The workforce was diverted towards tea, indigo and coffee

plantations. People left with no other option after the downfall of

industrial sector either flocked to these plantations or were forced by

the colonials to do so. Evidently, the agricultural sector accounted for

the largest share of the workforce which was around 70-75%. The

manufacturing and the services sectors accounted for only 10 and

15-20 percent respectively.

Also, there were increasing regional variations under the British rule.

There was a decline in the workforce on agriculture in the parts of the

then Madras Presidency, West Bengal and Maharashtra coupled with

an increase in the workforce on manufacturing and services sector. At

the same time, there was an increase in the workforce in agriculture

for Orissa, Rajasthan, and Punjab.

By and large, there was a drastic change in the occupational structure

after the advent of colonization. The selfish interests of colonials

completely transformed the volume of the workforce.

A Solved Example For You

Q: The share of the agricultural sector in the Indian workforce under

colonial rule was:

A. 70-75%

B. 50%

C. 10-20%

D. 90%

Ans: The correct option is ‘A’. The Indian economy became agrarian

with 70-75% of workforce depending on the agricultural sector for

livelihood. And this trend continued even post independence. But now

our dependence on agriculture is slowly decreasing.

Infrastructure

If we start noting the pros and cons of British rule over India, the

negatives column would definitely outgrow the positives. However,

the infrastructure development, especially the railways, will certainly

be one positive if not all. Ironically, as was with all colonial moves,

the idea of railways again gained momentum to strengthen the British

monopoly which was already on a high. Evidently, between 1860 and

1940, total railways route miles increased from 838 to 41,852.

Infrastructure in Pre-colonial India

The state of infrastructure during the pre-British India was very poor.

The transportation and communication lines were below average. In

fact, most of the villages lacked connectivity by pucca roads.

Consequently, natural dusty tracks were the roads predominant in

India. However, such roads spelt misery during monsoons as they

became muddy and difficult to traverse.

Additionally, during natural calamities, these roads became

unfunctional as a result of which various areas became inaccessible

and were cut-off. Animal-drawn carriages were the most common

mode of transport. This meant it would generally take a lot of days to

travel to other places. Hence the movement of passengers and freights

was very inefficient and slow.

Water transport was not very popular except in some parts of North

India where rivers were navigable. In a nutshell, the pre-colonial state

of infrastructure in India was far below satisfactory and the Britishers

were responsible for most of our infrastructure development.

Infrastructure Development in British India

In their long history of two centuries of exploitation, Britishers did

everything to drain Indian wealth and support their home country. The

poor state of infrastructure was a major hurdle to this process.

Transportation of materials from the countryside to ports was

inefficient and time-consuming. In fact, various routes became

inaccessible due to an absence of permanent roads. Development of

infrastructure was thus a necessity to empower colonial motives.

Hence, the development of telegraphs, roads, railways, ports, ports

and water transport was aimed at British empowerment rather than

providing basic amenities to people.

Browse more Topics under Indian Economy On The Eve Of Independence

● British Colonial Rule

● Agricultural Sector

● Industrial Sector

● Foreign Trade

● Demographic Condition

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The Various Aspects of Infrastructure Development

The roads in pre-colonial India were not fit for modern transport and

acted as a major hurdle for colonial administration. As a

countermeasure, various British officials called for the development of

roads. The roads which were built facilitated mobilization of the

British army and eased out the movement of raw materials from the

countryside to the nearest railway station to ultimately a port on it’s

their way towards Britain. However, the Britishers did not want to

spend money for development in a colony. Thus a shortage of funds

always prevailed.

The introduction of a railway system in 1950 completely revamped

the infrastructure. It is considered as a bright side to the colonial rule

if it had one. Initially, the government searched for British private

companies keen to invest in this plan. But companies refrained from

such an investment.

After certain negotiations, the Indian railway system started taking

shape. Eventually, at the beginning of 20th century, the colonial

government bought all the railway tracks and entered into the process

of direct investment. This development helped in breaking the

geographical and cultural barriers in India. People could now

undertake long-distance travel easily.

But again this led to commercialization of agriculture, profits from

which never reached Indian people. This accelerated the exploitation

of Indian resources. Consequently, the negative side outweighed the

social benefits Indians gained from the introduction of railways.

The British also introduced inland waterways and sea lanes, telegraph

and improved postal service. However, most of the canals became

uneconomical and eventually inoperational. The government

exclusively used telegraph facility to maintain law and order.

The postal service was an essential facility for the general public.

However, it remained inadequate due to lack of development. For the

most part, infrastructural developments undertaken by colonials

ensured fulfilment of selfish motives.

A Solved Example for You

Q: Why did the colonial government invest in a railway system?

a. To help break geographical barriers

b. To ease transportation of raw materials

c. Mobilisation of army

d. Both ‘b’ and ‘c’

Ans: The correct option is “D”. The Britishers had very greedy

motives to develop railways in India. They ultimately only looked

after their own needs of transporting raw materials and mobilization of

their army with ease.