What was the Focus of the Economic Policies Pursued by the Colonial Government in India? What were the Impacts of These Policies?
By Balaji
Updated on: February 20th, 2023
The focus of the economic policies adopted by the colonial government in India was to make India a supplier and exporter of raw materials for British industries. This, in turn, made India a prosperous market for ready, imported British goods. This policy focused on improving the wealth of the British while extracting India’s raw materials and adversely affected the Indian economy.
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1. Focus of Economic Policies Pursued by Colonial Govt. in India
Focus of Economic Policies Pursued by Colonial Govt. in India
The economic policies adopted by the colonial government in India focused on exporting raw materials from India and importing finished goods from Britain. It was planned to make Britain an important part of the growing global economy and develop India as its market. It had adverse effects, which are listed below.
- Lack of economic development: As the colonial government was concerned with the economic development of Britain, India’s economic development was neglected, and it caused a lot of damage.
- Stopped development of the agricultural sector: Due to the feudal system, the farmers were exploited. Due to a lack of effort, the agriculture sector could not develop and fell behind.
- The influx of foreign goods: Britain forced its imported, finished goods into the Indian market, leading to an influx of them. While they were highly undesirable, the lack of alternatives led people to use them.
- Backward Industrial Area: India exported raw materials at cheap rates. However, imported goods were sold at a higher rate, resulting in no growth in India’s industries, mostly losses.
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