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 in 1858. A few years later, Queen Victoria took the title of Empress of India. India suffered a series of serious crop failures in the late 19th century, leading to widespread famines in which at least 10 million people died. Responding to earlier famines as threats to the stability of colonial rule, the East India Company had already begun to concern itself with famine prevention during the early colonial period. This greatly expanded during the "Raj", in which commissions were set up after each famine to investigate the causes and implement new policies, which took until the early 1900s to