Economic Impacts of Colonial Rule in India

In this video we will learn how because of British colonialism, Indian economy faced stagnation and decline, which later on became a major challenge for development of the Independent India.

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Transcript:

Economic Impacts of Colonial Rule in India Amit Sengupta (video transcript)
(0:00) To understand any problem we need a historical perspective. Only then it makes sense as to what caused, what happened, and what can be done. India’s colonial experience provides that perspective. In this video we are going to look at colonial impact on broad sectors of the economy and social classes.

(0:17) Since the 18th century, the world economy has been influenced by two major forces. One is the Industrial Revolution, and the second one is Colonialism. And it is because of these two forces, the world was divided into developed and developing economies.

Industrial revolution took place in western Europe, especially Britain. And the impact due to this revolution is unmatched. It led to increase in productivity of labor, and prosperity, mainly because machines changed people’s way of life, as well as the methods of manufacture. However, the benefits of this revolution did not reach the regions of Asia, Africa, and Latin American. It is simply because of colonialism. These regions became impoverished after they became colonies. So, Industrial Revolution and Colonialism worked parallel because it prospered the countries of Europe, and looted the countries which were their colonies.

(1:10) Now India’s colonial experience under British was for two and half centuries. That is, from 1700 to 1947. This timeline can be further divided into two important halves, just to understand the problem in a better sense. The first half was from 1700 to 1857, wherein India was ruled by a trading company called East India Company, and the other half, that is from 1858 to 1947, witnessed a direct rule by the British crown. Now these two periods represented different kinds of British interest in India, and that got further translated in the economic policies for India.

(1:47) The trading activities of East India Company were very harsh. They would underpay the peasants, weavers, and local merchants, while trading goods. Often their methods of doing business involved violence, coercion, and other sorts of threats.

(2:00)Then they also introduced the land revenue system in India, wherein the company would collect revenue on land. Under this system, Zamindari, Ryotwari and Mahalwari systems of land settlements were created, which further increased the problems of Indian agriculture and peasantry, because now the system created a new class of intermediaries, that is the middlemen, who collected revenue on behalf of the company. Try to understand this. Now the peasants had to pay more in terms of revenue demand of the company, which also included the marginal commission of middlemen.

(2:32)This created immense pressure on the peasants. They were forced to shift their cultivation from food crops to commercial crops. As a result, the peasants became market dependent for food grains, and that led to large-scale famines. Due to combined weight of all these problems, peasants were forced to sell their lands to merchants or moneylenders, or become tenants on the estate lands. Simultaneously, the rural craft, and urban industry, faced similar problems. And due to that, workers joined the ranks of landless and poor.

(3:01) In the middle of this crisis, the intermediaries, that is the middle men, they emerged as the new dominant social class. Neither the company, nor the middlemen, showed any interest in the long term development of agriculture through investments. Now, this problem only became worse after the shift of power from the company to the British crown. It became pretty evident that the British industry had acquired India to be the major source of raw materials, and assured market for British manufacturers.

(3:30)Now this is where it gets very interesting. The British now felt the compulsion to invest in India, and that too, in selected sectors of irrigation, transport network, and port development. As the civil and revenue administration grew, they also felt the requirement of manpower. Therefore, to meet that requirement, English education was introduced.

(3:49) Now, for a moment, you may realize, “look, there is an investment by the British for the betterment of India.” Then you must also realize, “at the cost of what?” There was no relief to the peasants, revenue demands were increasing, and the laborers employed in tea, coffee, and rubber plantations in India, lived in slave-like conditions.

(4:08) Indian industry also suffered a major decline under the crown rule. Competition from British manufactures meant a decline in demand for domestic hand looms, metals, tools, paper products, and so on. This competition ruined millions of artisans and craft industries.

(4:24) British capital was mainly directed to banking, commerce, shipping, and insurance so there was no development of heavy industries. They never encouraged any native entrepreneurial class to create business. This method of declining traditional industries, and not letting the modern and heavy industries grow, is known as deindustrialization. And if you have seen the video of Mr. Shashi Tharoor’s speech at Oxford Union, he nicely said, “Britain’s Industrial Revolution was actually premised upon the de-industrialization of India.”

(4:56) British introduced new ways of draining the Indian economy. India’s foreign trade surpluses were transferred to British accounts. India was also made to pay for British wars in Afghanistan and China. So these were some of the ways of draining the Indian economy. But overall, the economic impact of colonial rule in India was devastating. They took no responsibility for any kind of welfare of Indians. And because of colonialism, Indian economy suffered stagnation and decline, which later on became a major challenge for development of the independent India.

[adriancheale]

A good video, my friend. I'm English, ashamed at my country, past and present. There are far too many Empire apologists and not enough people like you!

[ShashwatSinhaIITROORKEE]

Well, I have watched many online videos relating Pre and Post independent India but let me tell you that this is one of the best narration I have ever heard. Well depicted and organised. I have even watched your videos related to geography.

Thank you for creating such wonderful content for students and helping us in many ways.

Best part - The images, the timeline, and of course your clean and distinct voice.

Regards Sir!

[GururajBN]

Postscript: Untold part of the story is that even after independence, Nehru and his dynasty continued the colonial system of education, and our colonial mindset continued. We never thought as an idependent country. Furthermore, embracing socialism, and the hard left turn by Indira Gandhi in early 1970s, worsene India's economy. Nehru dynasty perpetuated the evils of the British imperial rule.

[princesrivastava]

Your best quality is summerizing vast content into a smallest possible manner...ur short video with so much content is your biggest attribute.

[nabanitaghosh]

This is great work! Helped me so much to teach my Danish high school students about Empire! Thank you!

[MsPikz]

Excellent explanation & analysis - lucid, well-reasoned and following a logical sequence.

[avashya]

wonderfully interpreted linking everything in a short duration ! easy to recall :)

[premsinghrathla]

Best teacher of India .iam very very thankful to u sir

[n.pranitaluccyvlogs]

Wow... It was amazing... The best way to learn ...

[kaissoune]

These things i really loved from you is known as your great accent in English as the way you explaining things easier ! Even though I am not from India but i have looked for Indian history, geography, Art, Mythology ..science, and techonogy about Indian competitions(because I am gonna participate if God willing from 28/November/2020) but every video i checked out they are speacked in mixing English with another language, difficulte to understand even i don't know which language they are talking! BE thankful for having such a great educator! thanks, sir

[ashokpaul]

Beautifully explained.. nice voice tone 👍

[mrs.kalimi]

Thankyou very much for a precise explanation.
From a fellow teacher.

[SimSummer]

Thank you this helped me with my history exam.

[chedeepak]

I have watched all your videos. I am very thankful to you . thanks

[sreekarpradyumna]

Hey Amit. Would you mind if I linked to your video on a blog post? I won't be embedding it, I'll be hyper-linking so that viewers get routed to your channel. Really love this explainer and it's exactly what I'm looking for.

[abcd]

It was very informative with simple language, understanding thnk u👍👍👍👍😊

[vikasprajapati]

Sir please make video on 1857... and thank you for wonderful explanation..😊🙏

[SillyMidOnn]

Have watched almost all your videos. Your slides are the best. Thanks for the effort.

[lavanyakalimishetty]

Thank you . please also make videos for polity & economics ncerts