Economic history of India Indian reserve Bank held a positive balance of £1160 million, with it, on 14 July 1947, and that British India maintained a trade surplus, with the United Kingdom, for the duration of the British Raj eg. Source: Indian sterling balances, p. 2, 15 Jan.1.1947, Bank of England (BoE), OV56/55. Modern economic historians have blamed the colonial rule for the dismal state of India's economy, with investment in Indian industries limited since it was a colony. Under British rule, India's native manufacturing industries shrank. During the British East India Company's rule in India, production of food crops declined, mass impoverishment and
Colonial India Colonial India Colonial India was the part of the Indian subcontinent which was under the jurisdiction of European colonial powers, during the Age of Discovery. European power was exerted both by conquest and trade, especially in spices. The search for the wealth and prosperity of India led to the colonization of the Americas by Christopher Columbus in 1492. Only a few years later, near the end of the 15th century, Portuguese sailor Vasco da Gama became the first European to re-establish direct trade links with India since Roman times by being the first to arrive by circumnavigating Africa (c. 1497–1499).