IMPACT ON INDIAN ECONOMY

DRAIN OF WEALTH The systematic policy of ferring the economic resources of India to Britain i.J erished the country. The officials of the British I government were paid out of the Indian exchequel money went out of India. There was a heavy tax t on the Indian people because large sums had to b annually as interest on loans contracted by the Gove~ of India. UnemploY}llent increased in India. It was first time in India's history that the balance of trade t unfavourable towards India.

DE-INDUSTRIALISATION The British caused 1 dous harm to the traditional handicraft industry decayed beyond recovery. Heavy customs dutiE imposed on Indian goods. The British officials ! preference for European goods. This provided an. to the demand for European goods and contribute decline of Indian handicrafts. The availability of n made goods in abundance at a comparatively low H greatly contributed to the decline of Indian handicri failure of the British Government to offer any protE indigenous industry also contributed to the de Indian handicrafts because they could not compt machine-made goods produced in bulk, and Consequently cheaper. With the subjugation of Indian princely 51 patronage to the handicraft industry ceased to exist.

RURALISATION Indian economy tended to more and more agricultural with the disintegratio traditional industries. The increase in the number 01 in agriculture. did not mean increase in agricultural tion but impoverishment of the rural masses; then industrial alternative. This accounted for the famines and increasing poverty in the 19th and quarter of the 20th century. India merely became a of raw material for industrial Britain.