Impact of colonization on Indian economy

 Colonialism is a practice or policy of control by a powerful nation or power over other people or areas, often by establishing colonies and generally with the aim of economic dominance. In the process of colonisation, colonisers imposed their religion, language, economics, and other cultural practices. 

Before the advent of colonial rule, India was a self-sufficient and flourishing economy. Evidently, our country was popularly known as the 'golden eagle'. India had already established itself on the world map with a decent amount of exports. Although primarily it was an agrarian economy, many manufacturing activities were budding in the pre-colonial India.

Colonialism was certainly a far more traumatising experience for colonial subjects than their colonisers. They suffered poverty, malnutrition, disease, cultural upheaval, economic exploitation, political disadvantage, and systematic programmes aimed at creating a sense of social and racial inferiority. 

Western colonial expansion began during the 15th century when Spanish and Portuguese explorers conquered "new" lands in the West Indies and the Americas. It continued for over 400 years, and ended with the start of the first World War.

 By that time western powers such as Great Britain, France, Germany, Italy, Belgium, Portugal and Spain, spurred on by their competitive desire to acquire new lands and resources, had colonized the whole of Africa and the areas that we know today as the Americas, Oceania, Australia, New Zealand, the Caribbean, the Middle East, and many parts of Asia and more importantly India. 

Especially in economic sector when European countries moved quickly to policies of export promotion, the Indian economy remained protectionist with adverse consequences for growth.

Indian independence led to a major change in the direction of economic policy. From a globalised economy integrated into the British Empire, the next 30 years saw a retreat from policies of free trade and capital flows. The newly independent State embraced the idea of development through industrialisation. In an economy where capital was scarce and entrepreneurship was concentrated in a few communities, the State stepped in to fill the gap.

The economy was overburdened with regulation and inefficiencies pulled down productivity growth. To the economic historian this is a turning point in ‘falling behind’.  In the last decades of colonial rule after colonialism had  its full impact, the per capita income in India actually declined at an annual income. As a result, the Indian economy collapsed.

From the size of India's population alone the economic history of India constitutes an important segment of the economic history of mankind. But with the middle of the eighteenth century, it assumed a further, special significance: subjugated by the first industrial nation of the world, it offered the classic case of the colonial remoulding of a pre-modern economy.

 Not surprisingly, the changing nature and consequences of this process and all its surrounding conditions have formed the constant theme of a long and continuing debate.

Indian craftsmanship was widely popular around the world and garnered huge demands. The economy was well-known for its handicraft industries in the fields of cotton and silk textiles, metal and precious stone works etc. Such developments lured the British to paralyze our state and use it for their home country’s benefits.

The British came to India with the motive of trade but so soon it turned into colonization. Their plans involved using India as a feeder colony for their own flourishing economy back at Britain. This exploitation continued for about two centuries, till we finally got independence on 15 August 1947. 

Consequently, this rendered our country’s economy hollow. Hence, a study of this relationship between the colonizers and its colony is important to understand the present developments and future prospects of India.

The colonial rule is marked with periods of heavy exploitation. The British took steps that ensured development and promotion of the interests of their home country. They were in no way concerned about the course of Indian economy. Such steps transformed our economy for the worse- it effectively became a supplier of raw materials and a consumer of finished goods.

Educated people in India identified the economic practices of the British Empire as extractive and exploitive. They saw their hope for greater political independence linked to greater economic self-reliance, a concept they called 'swadeshi'. 

A book called ’An Era Of Darkness’ which is authored by Dr.Shashi Tharoor. He focused on some astonising facts and figures of how British treated India for 200 years with so much of cruelty.

These are the important facts that Dr. Sashi Tharoor states in his book 'An Era Of Darkness'.

*At the beginning of 18th century india's share of the world economy was 23 %,after departure of Britain from India it had dropped to 3%.

*In 1930 ,the American historian Will Durant wrote that Britain's greatest crime in all history.Almost 35 million people died because of acts of commission and ommision by the British.

*Deindustrialization was deliberate British policy.Some historians believe that India was the most important manufacturer in world trade, producing about 25 percent of the world's industrial output at that time. After 1750, this changed dramatically.

* By the mid-nineteenth century, most textile production had shifted to Britain. A key part of that story is the de-industrialization of India.

* Economic development is a critical component that drives economic growth in our economy.

A stable economy for a country is as important as a culture, language and tradition. Money is the root and the basic thing for an individual development as well as a nation development. 

India’s status today is ambiguous. It is, by all accounts, the dominant power in South Asia, but it has been unable to achieve fully normalized relations with its largest neighbors, Pakistan and Bangladesh.

By definition, “emerging India” is still in the process of transition. A regional power expanding its circle of influence beyond the confines of South Asia, emerging India is becoming a global player as well, though still without being a full-fledged global power.