Q.11. “The spine of Indian Economy was badly injured during the 200 years of British Rule.” Explain

During the two hundred years of British rule in India, the spine of the Indian economy suffered significant harm. The reasons behind this injury are:

1. Economic Exploitation: When the British arrived in India, they disrupted the self-sufficient village economy. The country faced economic exploitation as the British extracted a substantial amount of resources during the first century of their rule (from 1757 to 1857). This exploitation continued even after the transfer of power in 1858, primarily through Home Charges. These charges drained about 10% of India’s total national income to England, exacerbating the economic backwardness.
2. Destruction of Cottage Industries: India had a rich tradition of cottage industries and handicrafts during the 16th and 17th centuries. However, the British colonial strategy led to the complete destruction of these industries. Cheap British manufactured goods flooded the Indian market, displacing local products. As a result, India became an importer of British goods and an exporter of raw materials like tea, coffee, oil seeds, and foodstuffs.
3. Drain of Wealth: The British drained India’s wealth through two main channels:
   • Remittances by European Officials: European officials remitted their savings and spent money both in England and India. Pensions and salaries paid in England contributed to this drain.
   • Remittances by Non-Official Europeans: Non-official Europeans also sent capital out of India. This economic drain prevented the accumulation of capital within the country. The capital that flowed out was then reinvested by the British in setting up industrial concerns owned by British nationals in India.
4. Monopoly on Trade and Industries: The British secured a monopoly over various trades and major industries in India. They further drained Indian capital through interest and profits. The once industrially advanced Indian economy was reduced to an importer of British goods, perpetuating underdevelopment.

In summary, the British rule severely impacted India’s economic backbone, hindering its growth and modernization during those two centuries.