Impact of British Rule on Indian Economy

Introduction

• The arrival of the British had an impact on the Indian economy.
• The roots of India's current economy lie in British rule.

Beginning of British Rule

• British rule began with the Battle of Plassey (1757)
• War between the Nawabs of Bengal and the British
• British rule lasted for about 200 years (1757-1947)

Decline of Indian Economy

• Before British rule, India's economy was prosperous.
• The economy declined due to British rule.
• Destruction of industrial sectors and handicraft industries

Cause of Indian Poverty

• According to Professor R.C. Dutt, the spread of poverty was due to British rule.
• "India is not a poor country but a country of poor people"
• The British used India for their own benefit.

Assessment of National Income

• Accurate assessment of national income and growth rate before independence was not done.
• Indian economists like Dadabhai Naoroji made efforts.

Estimates by V.K.R.V. Rao

• Estimates by V.K.R.V. Rao are considered the most appropriate.
• National income growth rate was 2% per annum and per capita income was 0.5%
• Extremely slow pace of economic growth

Conclusion

• Indian economy grew at an extremely slow pace during British rule.