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Q1. What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
Focus of colonial economic policies
The economic policies followed by the British colonial government in India were not aimed at developing the Indian economy. Their primary focus was to protect and promote the economic interests of Britain. India was deliberately reshaped into:
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a supplier of raw materials (like cotton, jute, indigo, silk), and
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a market for finished industrial goods manufactured in Britain.
In short, the colonial economy was designed to serve the needs of Britain’s industrial growth rather than India’s own development.
Impacts of these policies
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De-industrialisation of India
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Traditional handicraft and cottage industries declined sharply due to competition from cheap British manufactured goods.
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No strong modern industrial base was allowed to develop in their place, leading to large-scale unemployment.
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Agricultural stagnation
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Agriculture remained backward and stagnant despite employing the majority of the population.
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Exploitative land revenue systems (like the zamindari system), low investment, poor technology, and focus on cash crops worsened farmers’ conditions.
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Drain of wealth
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India consistently generated an export surplus, but this surplus was used to pay for British administrative costs, wars, and other expenses abroad.
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There was no corresponding inflow of gold or capital into India, resulting in a continuous drain of Indian wealth.
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Distorted foreign trade structure
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India exported primary products and imported finished consumer and capital goods.
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Britain enjoyed monopoly control over India’s foreign trade, limiting India’s economic autonomy.
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Low level of economic development
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Growth rates of national and per capita income were extremely low.
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Poverty, unemployment, and inequality became widespread.
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In essence, colonial economic policies led to the underdevelopment of the Indian economy, making it dependent, stagnant, and vulnerable by the time of independence