How did the British rule led to poverty of the Indian masses?
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The British rule had a negative impact on the Indian economy:
- There was substantial de-industrialisation in India. Imports of manufactured cotton cloth from England displaced local production and India was reduced to being an exporter of cotton yarn.
- Our industries were made to produce raw materials for the British at low prices and import manufactured goods at high prices.
- Indian farmers were forced to grow more of cash crops and export food grains to fetch revenue for the British.
- British policies involved sharply raising rural taxes that made merchants and money lenders to become large landowners, who exploited the people by way of low wages, high interest on loans, etc.
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