CNI UNIT 2
CNI UNIT 2
CONCEPT: Chandra’s central argument is the concept of the “Drain of Wealth”, a term popularized by Dadabhai Naoroji in
1871. It refers to the systematic extraction of India’s resources by the British, which impoverished the country.
•Impact: Chandra argues that India’s wealth was transferred to Britain through various mechanisms, including:
•Trade imbalances: India exported raw materials and imported finished goods from Britain.
•Land revenue: British policies like the Permanent Settlement of 1793 (introduced by Lord Cornwallis)
burdened
Indian peasants with heavy taxes, contributing to the transfer of resources to Britain.
•Military expenses: India had to fund British military activities, both within India and in British imperial conflicts,
further draining resources.
•Key Figures: Dadabhai Naoroji (first to use the term “Drain of Wealth”), Lord Cornwallis
•(implemented the Permanent Settlement), and other Indian nationalists who criticized these policies.
2. Economic Underdevelopment
•Argument: Chandra argues that British rule led to economic underdevelopment in India rather than
modernization. Britain’s policies, including the destruction of local industries and the reorganization of the
agrarian sector, resulted in a stagnant, dependent economy.
•Impact on Indian Industries:
• Textiles: British policies systematically destroyed India’s thriving textile industry by flooding the market
with cheap British goods, pushing Indian artisans out of work.
• Handicrafts: Similarly, traditional Indian handicrafts were undermined by the importation of British
goods, and local industries were not given the opportunity to modernize.
•Agricultural Exploitation:
• The British introduced exploitative land revenue systems that extracted the maximum revenue from
the agricultural sector, leaving little room for investment in productivity or modernization.
• The Permanent Settlement (1793) and the Ryotwari System (1820s) exacerbated the situation by
focusing on maximizing revenue from land while neglecting the welfare of farmers.
• Famines: Chandra highlights that British policies contributed to frequent famines, with the Great
Bengal Famine (1770) and the Indian Famine of 1876-78 as prime examples of the consequences of
British economic mismanagement.
3. Colonial Economic Policies
•Land Revenue Policies: Chandra focuses on the long-term
economic damage caused by policies like the Permanent
Settlement (1793), which led to the exploitation of both
peasants and landlords.
• Under this system, landlords (zamindars) were required
to pay fixed taxes to the British government, often
without regard to the agricultural productivity of the
land.
• This led to a lack of investment in agriculture, as
landlords had no incentive to improve the land,
resulting in poverty and social unrest among peasants.
•Destruction of Indigenous Industries: Chandra criticizes the
British for systematically dismantling India’s indigenous
industries, such as textiles and handicrafts, by promoting
policies that favored British manufacturing.
• Indian weavers and textile workers were driven out of
business by the import of cheap British textiles, causing
a collapse of local industries and increasing
unemployment.
4. Social and Cultural Impact
•Colonial Social Engineering: Chandra examines how British
colonialism was not only an economic enterprise but also a
social one, leading to significant changes in the structure of
Indian society.
• Caste System: The British made use of the caste system
to divide Indian society and maintain their control.
They used the census to categorize and politicize caste,
strengthening its role in Indian society.
• Social Reforms: While acknowledging certain reforms
like the abolition of Sati (1829) by Lord William
Bentinck, Chandra points out that these reforms were
often designed to maintain British control and were
not driven by a genuine desire to improve Indian
society.
5 British Policies and
FamineImpact of British Rule
on Famines: Chandra draws attention to the
devastating effect of British policies during times of crisis.
The Great Bengal Famine (1770), Indian Famine of 1876-
78, and others resulted in millions of deaths, which
Chandra attributes to British economic policies that
prioritized revenue collection over the welfare of the
Indian population.
• Famine Relief: Chandra criticizes British responses to these
famines, highlighting how the British often ignored or
mishandled relief efforts, leading to unnecessary suffering
and death.
6 Nationalism and Resistance
•Indian Nationalist Movement: Chandra traces the growth of
Indian nationalism as a response to the economic and social
consequences of British rule. He discusses the formation of the
Indian National Congress (INC) in 1885, which became the
primary vehicle for the Indian struggle for independence.
•Economic Foundations of Nationalism: Chandra emphasizes
that the economic exploitation of India under British rule laid
the foundation for the rise of Indian nationalism. It was the
realization that India’s economic condition was worsening due
to British policies that spurred intellectuals and leaders like
Dadabhai Naoroji, Bal Gangadhar Tilak, and Lala Lajpat Rai to
demand self-rule.
•Early Leaders and Reformers: The works of Raja Ram Mohan
Roy (1772–1833) and later reformers like Swami Vivekananda
(1863–1902) were crucial in laying the groundwork for a
cultural and intellectual revival that would feed into the larger
nationalist movement.
7. British Rule and Indian Class Structure
•Creation of a New Elite: Chandra also notes the creation of a new British-educated elite
that benefited from colonial rule. This elite class was often alienated from the Indian
masses and formed the backbone of the Indian Civil Services (ICS).
•Class Divisions: Colonial policies deepened the divisions within Indian society. The
British played a critical role in strengthening the class structure by emphasizing racial and
caste divisions, which weakened the potential for unified resistance to colonial rule.
Conclusion:
•Chandra’s Critique: In his essays, Chandra offers a Marxist
perspective on British colonialism, focusing on its economic
and social consequences. He critiques the capitalist nature of
British exploitation and argues that colonialism was
detrimental not only to India’s economy but also to its social
and cultural fabric.
•Historical Significance: Chandra’s work is essential for
understanding the long-term economic damage caused by
British rule, and his analysis of the Drain of Wealth provides a
powerful critique of colonial policies, which were designed to
enrich Britain at the expense of India.
Key Dates and Names in Chandra’s Essays on Colonialism:
1770: Great Bengal Famine.
1793: Permanent Settlement introduced by Lord Cornwallis.
1829: Abolition of Sati by Lord William Bentinck.
1857: First War of Indian Independence (also called the Sepoy
Mutiny).
1885: Formation of the Indian National Congress (INC)
.1890s: Rise of Indian Nationalism, with leaders like Dadabhai
Naoroji, Bal Gangadhar Tilak, and Lala Lajpat Rai.
1871: Dadabhai Naoroji’s first use of the term Drain of Wealth.
Comparison and Conclusion
Economic Exploitation: Both Chandra and Metcalf & Metcalf focus on the economic exploitation of India under
British rule, particularly through the Drain of Wealth, but Chandra's work is more focused on the material and structural
consequences of colonial policies on India's economy, whereas Metcalf and Metcalf provide a broader view that
includes both economic and political dimensions.
Social and Cultural Impact: Chandra emphasizes the destructive effects of colonial policies on Indian society,
including the manipulation of caste and religion. Metcalf and Metcalf, while acknowledging these aspects, also discuss
the social reforms introduced by the British, including educational and legal reforms that had long-lasting effects on
Indian society.
Political Resistance: Both works highlight the growth of Indian resistance movements to British rule, but Chandra
focuses more on the economic motivations behind this resistance, while Metcalf and Metcalf provide a broader political
and social context, including the role of reformers and the Indian National Congress in shaping modern Indian politics.
In conclusion, while both works provide valuable insights into the impact of colonialism, Chandra's essays are more
critical of the economic consequences of British rule, while Metcalf and Metcalf offer a more comprehensive, balanced
view, focusing on both the benefits and drawbacks of British colonialism and its long-term effect on Indian society and
politics.
SUMIT SARKAR (MODERN INDIA)
Sumit Sarkar’s analysis emphasizes how colonial rule reshaped Indian society and politics, while
highlighting the rise of Indian nationalism, social reforms, and the mass struggle for independence
under Gandhi's leadership.
BASICALLY TRACED HOW NATIONALISM EMERGED?
1 COLONIAL IMPACT ON INDIAN SOCIETY
• COLONIAL MODERNITY AND NEW SOCIAL GROUPS
• NEW SOCIAL GROUPS
2 ECONOMIC EXPLOITATION
3 RISE OF INDIAN NATIONALISM
• INDIAN INTELLECTS
• INC
4 SOCIAL REFORM MOVEMENT
678 MENTIONED-
5. Divide-and-Rule Strategy by the British:
•Partition of Bengal (1905): Sarkar emphasizes the British divide-and-rule policy, particularly
the partition of Bengal in 1905, which was an attempt to weaken the unity between Hindus
and Muslims by creating religious divisions.
•Religious Politics: The partition led to the growth of Hindu nationalism, with leaders like
Vinayak Damodar Savarkar advocating for Hindu unity. Similarly, the Muslim League, founded
in 1906, began articulating Muslim concerns, which would later contribute to the creation of
Pakistan M JINNAH , SIR SYED AHMED KHAN