Colonial Impact On The Indian Economy

India was a direct colony of the British and the impact of this colonial rule over the economy and society of India has been immense. It must be stated at the outset that direct colonial rule leaves a total impact on the colonized society because every aspect of social life is influenced by colonial policies of the colonizers. A direct colony (as was the case with India) is under the complete control of the colonizers …

…capital goods that support industrialization. The result of British economic policies was that India had industries without industrialization, because the colonial state was not interested in this aspect of economy. Further, Indian agriculture was stagnant. In terms of raw material for industry, the situation was pretty bad. The direct consequence of British rule over India was low per capita income, low agricultural output, low level of savings, underdeveloped infrastructure, and low level of human skills.