Question

What was the economic impact of the British policies in India?

Answer 1

Instructions:

1. Mention about the decline in Indian cottage industries becoming a market for British industry made goods.
2. India became an exporter of raw materials for the British industries in England.
3. Wealth Drain from India as stated by Dadabhai Naoroji.

Solution:

• After 1757, the English East India company set up a monopolistic rule over Indian trade and production.
• Indian weavers had to buy raw materials at a higher price.
• The British Commerce policy was favourable to the British interests only.
• India became a market for British industrial goods.
• India also became a supplier of raw materials for Britain.
• With free trade introduction, Indian cottage industries disappeared.
• As per Dadabhai Naoroji, “Wealth drain resulted in poverty”.
• The British made profit by investing money in India.

• This obstructed the development of Indian industries