Economic policies of the British in India from eighteenth century to Independence

British control over India began purely out of economic considerations with political factor assuming primacy in the later stages. The English East India company assumed the Diwani rights over a large part of east India following their victory at Plassey (1757) and Buxar (1764). The Company continued to rule for nearly a century followed by the direct British rule till 1947. In the meantime, they devised certain economic policies which had far reaching impact on all aspects of Indian society. 

Till the 18th Century, India was not only ahead in the field of agriculture, but also had a prominent place in the world in the field of handicraft production. 

Mid 18th Century onwards, the British destroyed handicraft industry and introduced new systems and tenures and policies of revenue administration. 

The taxation policies of British were very regressive and exploitative. British had implemented new policies of revenue collection in the form of Permanent Settlement, Mahalwari Settlement and Ryotwari Settlement. 

British took interest in agriculture in the form of plantation in tea, indigo, cotton etc. They did not work in any manner for the upliftment of irrigation or any agricultural infrastructure. Industries were established with foreign capitals to serve the purpose of Britain. 

Traditional art and handicraft were destroyed. Nonetheless, British laid the foundation of modern industries in India. It laid out an extensive network of railways which today serves as the lifeline of the nation. 

They can also be credited for establishing the modern credit system. Whatever investment they made, it was done with an eye on meeting their ends. 

British dictated the terms of international trade for India, and often restricted the Indian traders to transact with nations that were hostile to Britain. Britain used Indian economy as an appendage to pursue the colonial missions abroad.