The Drain of Wealth fostered industrialization in England at the cost of Indian industrialization. Elucidate.
India used to be a leading manufacturing country in the world in the early 18th century.
However, the scenario changed with the British entry into India. It led to a situation of Drain of Wealth wherein all the revenue was sent by the English to England to further its glory.
British colonialism weakened agriculture and “deindustrialized” India, throwing millions of artisans out of work. Britain’s trade policies encouraged the import of manufactures and the export of raw materials; finally, it drained the wealth of India by transferring its capital to Britain.
The Indian Nationalists have stated that Lancashire’s new textile mills crushed India’s handloom textile industry and threw millions of weavers out of work. The indigenous banking system was also destroyed because Indian industries had downtrodden.
The colonial government were not imposing tariff barriers. Therefore, Indian consumers preferred cheaper English mill-made cloth and millions of handloom workers were left in misery.
Britain also changed the old land revenue system to the disadvantage of the farmer, who had to now pay revenue whether or not the monsoon failed. This led to famines.
The British started dumping the finished goods from Britain into India.
The cheap resources from India were used to fuel British economy.
Lastly, the taxes collected from India financed Britain’s wars for expansion of the empire.
Therefore, it can be rightly said that the industrialisation of England was fostered by the Drain of Wealth from India.
"The Drain of Wealth fostered industrialization in England at the cost of Indian industrialization." Elucidate.
Published: January 9, 2017 | Modified:June 27, 2019