Colonial Rule and Its Effects on India's Rural Economy
Read this article, which takes a much longer-term historical view of
India's contributions to the global economy. In particular, it covers
how British colonial rule may have "broken" the economy in ways that
have yet to be repaired.
Abstract
India had been an economic superpower for more than 1500 years, contributing between 25% to 30% of the world's GDP, but productivity had stagnated due to poor education and a lack of technology. Beginning in 1600, India's contribution to the world GDP began declining. During Mughal rule, India had a rich economy with the largest standing army in the world. The Mughal rulers were fabulously wealthy, but during British colonial rule, India's agricultural production became plantation-oriented and commercially-based. India's traditional handicrafts and handlooms industry declined.
Once a major producer of fine textiles, India became a supplier and exporter of raw cotton and opium, indigo, tea, coffee, cotton, spices, and other commodities. The Indian rural economy, which had monopolized fine muslin cloth production for more than 1500 years, deteriorated and India was forced to import cheap Manchester mill-produced cloth. The industrialized nations became wealthy due to slaves, modern technology, and colonialism. India's population grew sharply, but its share in the world's GDP fell appreciably.
The British built major irrigation systems in India to stave off periodic starvation and ensure the movement of export commodities. After 1857, they invested in road, rail, postal, and telegraph facilities to allow their troops to move faster. Famines were reduced, but the basic structure of the Indian rural economy had been irreversibly broken – the peasants became poorer due to the rapid de-industrialization of India. Lower land revenues did not help. As a colonial super-power, the British ensured that all changes enhanced their trade interests. Colonial exploitation of India's resources eventually succeeded in pauperizing India. The South Asian economies have yet to recover from the effects of colonial rule and need to make massive changes to counter the baneful effects of colonial rule on their rural economies.
Keywords
Agricultural Production, British colonial rule, Cottage Industries, Colonialism, De-industrialization, Famines Opium, Gross Domestic Product (GDP), India, Mughal rule, Rural Economy, South Asia, Superpower, Trade.
Source: Krishna. G. Karmakar, https://esciencepress.net/journals/index.php/JSAS/article/view/494
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