Model Answer
0 min readIntroduction
The economic relationship between Britain and India during the colonial period was a complex one, often characterized by exploitation and unequal exchange. The concept of a ‘complementary economy’ suggests that India was deliberately structured to serve the economic needs of Britain, providing raw materials and a market for British manufactured goods. This view posits that British industrial and commercial policies weren’t aimed at developing India independently, but rather at integrating it into the British economic system as a subordinate partner. This answer will examine the validity of this claim by analyzing the key policies implemented by the British East India Company and the subsequent Crown rule.
Deindustrialization and the Destruction of Indigenous Industries
Prior to British rule, India possessed a thriving textile industry, renowned globally for its quality. However, British policies systematically dismantled this industry. High tariffs were imposed on Indian textiles entering Britain, while British textiles were allowed duty-free access to the Indian market. This led to a decline in Indian textile exports and the eventual collapse of many Indian weaving communities. This process, known as deindustrialization, transformed India from a producer of finished goods to a supplier of raw materials like cotton.
Trade Policies Favoring British Interests
British trade policies were explicitly designed to benefit British merchants and manufacturers. The East India Company held a monopoly over trade with India for a significant period, controlling the flow of goods and extracting maximum profits. Even after the Company’s dissolution in 1858, the colonial government continued to prioritize British trade interests. For example, the imposition of the 'home charges' – expenses incurred by the British government in India – were unfairly borne by Indian revenues, further draining the Indian economy.
Resource Extraction and Land Revenue Systems
The British implemented land revenue systems like the Permanent Settlement (1793), Ryotwari System, and Mahalwari System, which aimed to maximize revenue collection. These systems often led to the exploitation of Indian farmers and the transfer of wealth to Britain. The focus on cash crops like indigo and opium, driven by British demand, diverted land and resources away from food production, contributing to famines and agricultural distress. The extraction of raw materials like jute, tea, and minerals further reinforced India’s role as a supplier of resources to British industries.
Infrastructure Development – Serving Colonial Needs
While the British did invest in infrastructure like railways and canals, these were primarily built to facilitate the transportation of raw materials to ports for export to Britain and the distribution of British manufactured goods within India. The railway network, for instance, was not designed to promote internal trade within India but to connect resource-rich areas to ports. The development of ports like Bombay, Calcutta, and Madras was also geared towards facilitating British trade.
Discriminatory Industrial Policy
British policies actively discouraged the development of modern industries in India. There was a lack of investment in capital goods industries, and Indian entrepreneurs faced numerous obstacles in establishing and expanding their businesses. The British feared competition from Indian industries and actively suppressed their growth through discriminatory regulations and policies. This ensured that India remained dependent on British manufactured goods.
| Policy | Impact on India | Benefit to Britain |
|---|---|---|
| High Tariffs on Indian Textiles | Decline of Indian textile industry, unemployment | Increased sales of British textiles in India |
| Land Revenue Systems | Exploitation of farmers, agricultural distress | Increased revenue for the British government |
| Railway Development | Facilitated resource extraction and trade for Britain | Efficient transportation of raw materials and finished goods |
Conclusion
In conclusion, the evidence strongly supports the view that the objective of British industrial and commercial policies was to transform India into a complementary economy of England. The systematic deindustrialization of India, coupled with trade policies favoring British interests, resource extraction, and discriminatory industrial policies, all point towards a deliberate strategy of integrating India into the British economic system as a subordinate partner. While some infrastructure development occurred, it primarily served colonial needs rather than fostering independent Indian economic growth. This legacy of economic exploitation continues to shape India’s development challenges today.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.