Question

Identify the impacts of British colonial policies on Indian economy.

• A. Deindustrialisation of Indian Economy
• B. Unfavourable Foreign Trade
• C. Lack of Irrigation facilities and resources
• D. Both a and b

Answer 1

The correct option is D Both a and b

The colonial rule transformed India's agriculture sector to a mere supplier of raw materials for the British industries. This not only affected the production of the agricultural sector but also ruined the small manufacturing units like handicrafts and cotton industries. There was very minimal appreciation of the labor forces and compensation of the employees by the colonial regime therefore the workers motivation was very low, with low motivation the workers input will definitely go down low input will obviously lead to lower rates of industrials potential output therefore hindered .

The economic policies followed by the British led to the rapid transformation of India’s economy into a colonial economy whose nature and structure were determined by the needs of the British economy.