International Journal of Advanced Research and Development

International Journal of Advanced Research and Development


International Journal of Advanced Research and Development
International Journal of Advanced Research and Development
Vol. 3, Issue 1 (2018)

Changes in Indian economy during British Raj


Rupesh Kumar

At the time of British conquest, the Indian economy was more or less self-sufficient. The economy was mostly agrarian and primarily producing two crops- rice and wheat. Despite this, it was sustainable. Indian exports were more than imports, balance of payment was positive. The cotton textile industry was well developed. Indian cotton clothes especially handmade, had very good demand in Britain and other European markets. But, India experienced deindustrialization during British era, the handicraft industry destroyed by the British policy. Indian export declined and this led to stagnation of Indian economy, growing at meagre rate (1.2%) as the population. The India's share of world economy declined rapidly from 24% in 1700 to 4.2% in 1947. The Indian agricultural sector, which supported almost the entire economy, saw stagnation, besides the fact that the Britishers invested a lot in infrastructure building, including in canals and other irrigation systems. But this extensive irrigation system were built to give an impetus for growing cash crops for export and for raw materials for Indian industry, especially jute, cotton, sugarcane, coffee and tea. However, the Britishers gave special attention towards transport and communication sector and invested heavily in roads, railways, ports and telegraphy.
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How to cite this article:
Rupesh Kumar. Changes in Indian economy during British Raj. International Journal of Advanced Research and Development, Volume 3, Issue 1, 2018, Pages 991-993
International Journal of Advanced Research and Development International Journal of Advanced Research and Development