What was the Focus of the Economic Policies Pursued by the Colonial Government in India? What were the Impacts of These Policies?

By Ruchika|Updated : September 5th, 2022

The focus of economic policies pursued by the colonial government in India was to make India a supplier and exporter of raw materials for Britain's industries. Also, in turn, to make India a flourishing market for finished, imported British goods. This policy focused on improving the wealth of the British while draining India of its raw material and has an adverse impact on the Indian economy.

Focus of Economic Policies Pursued by the Colonial Government and its Impacts

The economic policies pursued by the colonial government in India focused on exporting raw materials from India and importing finished goods from Britain. This was planned to make Britain an important part of the growing global economy and develop India as its market. This had adverse impacts that are listed below.

  1. Lack of Economic Development - As the colonial government was concerned with the economic growth of Britain, India's economic growth was ignored and suffered greatly due to it.
  2. Stunted Growth of Agriculture Sector - Due to the feudal system, farmers were exploited. Due to lack of effort, the agriculture sector was unable to grow and became backwards. 
  3. An influx of Foreign Goods - Britain forced their imported, finished goods into the Indian market creating an influx of them. While they were highly undesirable, due to lack of an alternative, people had to use them.
  4. Backwards Industrial Sector - India exported raw materials at a cheap rate however, the imported goods were sold at a high rate resulting in no growth in India's industries which mostly suffered losses.

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  • The focus of colonial government's economic policies was to make India an exporter of cheap raw materials and develop it as a market for expensive finished goods.

  • The economic policies of the colonial government in India resulted in India's stunted growth in the agricultural and industrial sectors as well as an influx of foreign goods and a lack of economic development.

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