Discuss British economic policies and reforms, such as the demonetization of silver and the founding of the Reserve Bank of India.
The British introduced the following economic policies to India, which are still profound and lasting: Land Revenue Systems:---- 1. Zamindari System: The British granted authority to collect land revenue to Zamindars which meant landlords. The feudal system usually intimidated peasants through heighRead more
The British introduced the following economic policies to India, which are still profound and lasting:
Land Revenue Systems:—-
1. Zamindari System:
The British granted authority to collect land revenue to Zamindars which meant landlords. The feudal system usually intimidated peasants through heightened lease payments while forcing some to leave their properties.
2. Ryotwari System:
Tax revenue was obtained through direct payment from agricultural producers. During periods of drought the approach proved stern but it kept toward fairness throughout most other times.
3. De-industrialization:
British manufacturing imports led to the demise of Indian textile businesses producing cotton alongside silk along with different types of handicrafts.
4. Focus on Cash Crops:
Indian farmers faced a dual requirement to focus on producing cash crops for British exports which pushed food crops into secondary importance thereby leading to recurring food shortages across the country.
5. Drain of Wealth:
Years of Indian wealth ended up being moved out of the country through British business profits and British official salaries as well as loan payment interests.
6. Development of Infrastructure
The British constructed railways along with other infrastructure yet all their developments targeted British economic purposes for transporting raw materials and manufactured goods.
Economic Impact on Local Economies
1. Destruction of Peasants: The combination between land revenue policies and cash crop programs transformed most farmers into poverty-stricken people.
2. Deindustrialization: Traditional industries declining caused an enormous loss of employment while creating total disaster for skilled professionals and textile manufacturers.
3. Economic Dependence: Raw material export from India allowed it to depend on British manufactured goods imports.
4. Unequal Development: Development fruits did not reach British citizens and Indian capitalist class fairly in this economic model.
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British Economic Policies and Reforms in India During the British colonial era, the British government introduced several economic policies and reforms in India, which had significant impacts on the Indian economy. Some of the key reforms include: De-monetization of Silver: In 1835, the British goveRead more
British Economic Policies and Reforms in India
During the British colonial era, the British government introduced several economic policies and reforms in India, which had significant impacts on the Indian economy. Some of the key reforms include:
Impact on Indian Economy
The British economic policies and reforms had significant impacts on the Indian economy. Some of the key effects include:
- Dependence on Exports: The encouragement of export-oriented production led to a significant dependence on exports by Indian industries, which made them vulnerable to fluctuations in global demand.
- Decline of Indian Industries: The protectionist policies implemented by the British government led to a decline in Indian industries, as they were unable to compete with British imports.
- Depreciation of Indian Currency: The de-monetization of silver and the introduction of the gold standard led to a depreciation of the Indian currency, which made it more difficult for Indian industries to compete with foreign imports.
- Increased Unemployment: The decline of Indian industries led to increased unemployment and poverty among Indians.
- Growth of Urban Centers: The growth of infrastructure development led to an increase in urbanization and the growth of cities like Calcutta and Bombay.
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