Economic History of India under British Rule

In this episode, we explore the economic history of India under British rule, examining the profound transformations that unfolded during the era of the East India Company and the British Raj. We unpack the “drain of wealth” theory and the ways colonial taxation, trade policies, and revenue systems redirected Indian resources to serve imperial interests, while also considering arguments that point to infrastructure projects such as railways and irrigation as foundations for modernization. The discussion delves into the forced commercialization of agriculture, the decline of traditional textile industries, and the restructuring of labor systems, including the shift from slavery to indentured contracts across the empire. We also confront the systemic causes of recurring famines and the broader debate among historians over whether British rule laid the groundwork for economic development or functioned primarily as an extractive regime that constrained India’s long-term growth.