British rule in India

How Britain looted Indian economy

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Majority of intellects in Pakistan firmly believe the British Raj – when Britain ruled over India from 1857 to 1947 – was a flourishing period. Their views depict their lack of knowledge about history. Not knowing that the impact of British rule on India  was very very negative!

Britain destroyed each and every aspect of Indian culture and economy, especially those which are related to Muslims.


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As compared with the current economic condition of the countries of then British Raj, India was more prosperous priior the twentieth century.

In this article, we will explain how Britain looted India, what are the impacts of British rule on the Indian economy, and how she destroyed its economy, architecture, education, religion & culture.

What's in this article...

Britain in India:

Britain set its foot in India in 1600 C.E. Akbar’s son, Jahangir, was ruling India during that time.

Whether Jahangir was a corrupt and irresponsible ruler is a different story. History proved that allowing Britain to form trade with India and its company – the East India Company – to enter the land was his biggest blunder

Britain Destroying Indian Industry:

At the time Britain stepped foot on India, the country was participating with 23% of global GDP.

By the end of the eighteenth century, Britain was shifting its method of earning from the land to the industry. India was a mouth-watering economy then. She was a country which was as manufacturing as it was agricultural.

For Britain’s industry and economy to work effectively, It was important for it to deindustrialize India.

A first look at the history gives a clear thought of the British’s motive to loot all the riches of the land. As an implication, it was mandatory for Britain to make India its colony. Jawaharlal Nehru, :

Britain applied every policy to destroy Indian industry and decay its agriculture. The idea was to lower her status from a manufacturing country to an agricultural country. Britain looted the land’s treasures.

Poverty was on the rise in India due to British despotic policies. Britain was successful in lowering India to the point she is today.

Britain sought to destroy Indian economy

Colonial Britain tried its every effort to destroy Indian economy. The imposed tariffs and duties on Indian products aided her to achieve those goals.

  • Britain left India with less than 4% share of global GDP.
  • India became world’s biggest purchaser of Britain’s finished goods
  • Indian share in global exports dropped to less than 2% from 27%.
  • India was exporting raw material and importing finished goods from Britain.
  • Violence and racism was the reality of colonialism.
  • British aid to India was 0.4% of its total
old Indian train
early Indian train

Indians were purchasing products from Britain at higher prices for the products they were producing at lower costs.

Pakistan follows a similar practice. They locally produce goods at lower rates and buy goods after those are given a brand-name at very higher prices.

Interestingly, Pakistani people brag about using ‘foreign goods’ and look down upon local people because they use ‘home-made products.

Destroying Indian Culture:

  • Ethnic, racial & religious tension were the direct result of the British experience.
  • Most of the Islamic schools-of-thoughts are formation of the era of the British raj.
  • British soldiers engraved their names on historical monuments, such as the Red Fort of Lahore, to ruin the archeological remains.

Final Words

Should the people of then India, which has now decomposed into Pakistan, India and Bangladesh, demand reparation? I believe Britain should return the treasures they looted along with an apology.

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