Question

Why was the Indian economy developing at a lower pace under the British Colonial Rule?

• A. The British couldn't develop India due to numerous wars
• B. The British were concerned with the development of their home country and used India only as a resource haven.
• C. The British were concerned with the development of other countries the British ruled
• D. None of the Above

Answer 1

The correct option is B The British were concerned with the development of their home country and used India only as a resource haven.

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.