Economic Effects of British Rule in India :
- The British Rule in India ruined Indian industry and trade. With the growth of cotton industry in England following the Industrial Revolution and with growing restrictions on imports into Europe, the British Government followed a policy of destroying the Indian Industry. It made India as the largest importer of foreign goods though it was one time chief exporter.
- Cash Assessment of Land Revenue. Agricultural production was no longer for use in the villages only as much of it was sent to the market for sale. This helped fanners to pay their revenue in cash to the Government. The actual tiller/fanner was in fact left with no surplus. His life became miserable. He was very often heavily in debt and in the clutches of the money-lender, who, eventually, came to control the land and its produce.
- The Drain of India’s wealth. British took huge wealth from India in different ways. They exploited India by unequal trade by forcing us to sell raw material to them at cheaper rates and purchase the finished product at dearer rates. They imposed heavy taxes on our exports and relaxed duties in imports from Britain. They forced our peasants to cultivate cash crops and refused them the due price of those products.