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
Presidencies and provinces of British India India Company had become the paramount political and military power in south Asia, its territory held in trust for the British Crown. Company rule in Bengal from 1793, however, ended with the Government of India Act 1858 following the events of the Bengal Rebellion of 1857. From then known as British India, it was thereafter directly ruled by the British Crown as a colonial possession of the United Kingdom, and India was officially known after 1876 as the Indian Empire. India was divided into British India, regions that were directly administered by the British, with Acts established and passed in