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
British rule in Burma redistribution with the prices of the most important commodities set by the state. Trade itself was not as important as self-sufficient agriculture, but the country's position on major trade routes from India to China meant that it did gain a significant amount of money from facilitating foreign trade. With the arrival of the British, the Burmese economy became tied to global market forces and was forced to become a part of the colonial export economy. Burma's annexation ushered in a new period of economic growth. The economic nature of society also changed dramatically. The British began exploiting the rich soil