Economic Impact of Colonialism

Core concept

Colonial policies favoured British industries, importing cheap manufactured goods like textiles while exporting raw materials from India, harming traditional Indian craftspeople.

How it works

Indian farmers were often forced to grow cash crops like indigo and cotton for export, rather than food crops, which sometimes led to famines and food shortages.

Why it matters

Heavy taxation and revenue systems, like the Permanent Settlement, often burdened farmers, leading to debt and poverty in rural India.

Key detail

While some infrastructure like railways was built, it was primarily designed to serve British economic interests, like transporting raw materials to ports, rather than benefiting Indian development broadly.