British Colonial Policy in India: Economic Exploitation and

Social Control

It is a common saying that “luck and history favors those who help themselves”, and if
we have learned anything from the past centuries it is that history is the best of teachers.
Those who refuse to extract meaningful lessons from it eventually lose the recognition of
their names from historical accounts. This is precisely what transpired with the Mughal
Empire which faded into irrelevancy after governing for the majority of the eight
centuries long Muslim rule in the Indian Subcontinent. The inability of Mughal rulers to
keep a consolidated grip on the Empire towards the second half of their rule created a
passage for the East India Company and the British Crown to strengthen their steps on the
land.

Historical Background

The East India Company was a British trading company that was established in 1600 for
the purpose of trading with India and other parts of Asia. The company initially focused
on importing spices, textiles, and other luxury goods from India and exporting them to
Europe, but over time, it began to expand its operations and influence in India. The
company's early efforts in India were focused on establishing trading posts and building
relationships with local rulers. In 1613, the company was granted permission by the
Mughal Emperor Jahangir to establish a factory (trading post) in the port city of Surat.
This marked the beginning of the company's presence in India, and it soon established
other factories in various parts of the country. As the company's operations expanded, it
became more involved in local politics and began to exert influence over the regions
where it traded. The company formed alliances with local rulers, sometimes through
bribery or coercion, and established its own military force to protect its trading interests.

Introduction

The rise of British colonialism in India can be traced back to the early 17th century, when
the British East India Company was established. At the time, India was a wealthy and
diverse subcontinent, with a long history of trade and cultural exchange with other parts
of the world. In the early years of British trade in India, the British East India Company
was primarily focused on the commercial aspects of trade, such as importing spices,

1
textiles, and other goods from India and dealing them to Europe. However, over time, the
East India Company began to expand its political control over the regions covered by its
trading network. This was in part due to the weakening of existing political powers in
India and the rise of the British military and administrative apparatus. One key turning
point was the Battle of Plassey in 1757, when the British East India Company defeated
the army of the Nawab of Bengal and gained control over the province of Bengal. This
victory marked the beginning of British territorial control in India, and it set a precedent
for future British military interventions. As the East India Company continued to expand
its territorial control, it also began to exert more influence over the internal affairs of the
regions it controlled, through a combination of diplomacy, military force, and economic
manipulation. By the mid-18th century, the East India Company had become the
dominant power in India, with its own army and administrative system along with
sufficient resources to rule.

Literature Review

British colonial policy in India was marked by both economic exploitation and social
control. The British East India Company first established a foothold in India in the early
17th century, and over the next few centuries, they gradually gained control over much of
the subcontinent. The British colonial administration in India was characterized by a
combination of direct rule and indirect rule. In some areas, the British established direct
control through their own administrative apparatus. In other areas, they relied on local
rulers to maintain order and collect taxes, while retaining ultimate control over the region.
The British Empire's economic exploitation of India was a key aspect of their colonial
rule in the country which included the following means:

Raw Materials: The British viewed India as a source of raw materials and a market for
British goods, and they sought to extract as much wealth as possible from the country.
They exploited India's natural resources, such as cotton, tea, and indigo, for their own
profit in addition to setting up plantations and factories to produce these goods and then
shipping them back to Britain for sale.

Land Revenue and Taxation: The British introduced a system of land revenue and
taxation that benefited them at the expense of Indians. They imposed high taxes on Indian
producers and traders, forced Indian farmers to grow cash crops for export rather than

2
food for their own use, and established monopolies on the production of certain goods.
This led to widespread poverty and deprivation among the Indian population, with many
people forced to work long hours for low wages just to make ends meet. The British also
introduced land revenue systems, which allowed them to take control of Indian land and
extract wealth from it.

Trade Restrictions: The British imposed restrictions on Indian trade, which prevented
Indian manufacturers from competing with British products. Half of the India’s trade was
allowed to Britain while the other half was authorized to Ceylon (present day Sri Lanka),
China and Iran. They also introduced tariffs and other measures to protect British
industry.

Deindustrialization: The British actively worked to deindustrialize India, particularly in

Drain of Wealth: The British drained wealth from India in the form of tribute, direct
transfers, and repatriation of profits. The most notable example of this is the British
government's decision to transfer large amounts of wealth out of India in the form of gold
and silver. A large portion of India’s capital and wealth was transferred or drained to
Great Britain in the form of salaries and pensions of British civil and military officials
working in India, interests on loans taken by the Indian government, profits of the British
capitalists in India and the home charges or expenses of the Indian Government in
Britain.

At the same time, the British also sought to maintain strict control over Indian society.
They saw India as a land of exotic customs and traditions, which they believed needed to
be tamed and modernized. They sought to impose their own values and way of life on the
Indian population, and they did so through a variety of means, including:

English Language and Education: The British promoted English language and
education in India, and made it a requirement for many positions in government and
business. This was a deliberate effort to create a class which was “Indian in blood and

3
color, but British in taste” known as the English-speaking educated class, which became a
privileged group in Indian society.

Christianity: The British also promoted Christianity in India, building churches and
missionary schools to convert Indians to Christianity. They saw it as a way to "civilize"
and "modernize" Indians, and to create a class of Indians who shared their values and
beliefs. These steps not only helped the British justify their colonial ambitions but also
created a slightly favorable environment for them in the Indian society.

Law and Governance: The British introduced their legal system to India, which was
based on the common law of England. This system relied heavily on judicial precedents
and was designed to protect property rights, enforce contracts, and ensure the rule of law.
However, it was also criticized for being insensitive to local customs and traditions.
Moreover in 1860, the British introduced the Indian Penal Code, which defined crimes
and their punishments. This code was designed to bring uniformity to criminal law
throughout India and was heavily influenced by British legal principles, which were
based on British values and norms. They created a centralized bureaucracy and police
force, which helped them maintain control and suppress dissent.

Social Hierarchy: The British initially relied on the existing caste system in India to
maintain social order. They worked closely with the upper castes and provided them with
opportunities for education and employment. This further entrenched the existing social
hierarchy. However as times progressed, the British introduced a modern education
system that was based on Western values and ideas. This provided opportunities for
people from lower castes to gain access to education and employment, which challenged
the traditional social hierarchy. Moreover, the introduction of Christian teachings
challenged the existing religious practices and beliefs. Many people from lower castes
converted to Christianity, which further challenged the social hierarchy, creating social
change. They also created new categories, such as "Anglo-Indians," to distinguish Indians
of mixed British and Indian ancestry.

Divide and Rule: One of the key factors that allowed the British to establish their
dominance over India was the fragmented nature of Indian society at the time. India was
divided into numerous small kingdoms and principalities, many of which were engaged in
ongoing conflicts with one another. The British were able to exploit these divisions to
establish their own power, using alliances with local rulers and military force to maintain

4
control. They used this strategy to prevent unity and resistance against British rule. One
of the most infamous examples of social control was the British policy of divide and rule,
which pitted different religious and ethnic groups against each other in order to maintain
British control. This policy had long-lasting consequences and contributed to the religious
and political tensions that continue to affect India today.

Conclusion

To sum up, it is safe to say that the British colonial policy of social control and economic
exploitation had a profound impact on India, its people, and its culture. Overall, the
British colonial policy of social control and economic exploitation can be seen as a form
of oppression, which contributed to the impoverishment and marginalization of Indian
people, as well as the loss of cultural heritage and identity. The legacy of British
colonialism is still felt in India today, in the form of ongoing struggles with poverty,
inequality, and cultural preservation.

References

1. Kumar, Anit. “Chronology Order of the British in India.” IAS for IAS, IAS for
IAS, 4 Dec. 2020, https://iasforias.com/chronology-of-the-british-in-india/.
2. “Read: Imperialism and De-Industrialization in India (Article).” Khan Academy,
Khan Academy,
https://www.khanacademy.org/humanities/whp-1750/xcabef9ed3fc7da7b:unit-3-
industrialization/xcabef9ed3fc7da7b:3-2-global-industrialization/a/imperialism-
and-de-industrialization-in-india-beta.
3. Meena, Hareet Kumar. “The Meaning and Methods of Drain of Wealth in
Colonial India.” International Research Journal of Management, IT and Social
Sciences, https://sloap.org/journals/index.php/irjmis/article/view/355#:~:text=The
%20drain%20of%20wealth%20was,third%20of%20India's%20total%20savings.
4. Thakur, Kundan Kumar. British Colonial Exploitation of India and Globalization
- Jstor.org. https://www.jstor.org/stable/44158840?read-now=1.
5. 19, Shakeel AnwarUpdated:Nov. “Development of Education during British
Period in India.” Jagranjosh.com, Jagranjosh.com, 19 Nov. 2020,
https://www.jagranjosh.com/general-knowledge/development-of-education-
during-british-period-in-india-1445314601-1.

5
6