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
Religious violence in India 1946, left approximately 3000 Hindus dead and 17000 injured. After the Indian Rebellion of 1857, the British followed a divide-and-rule policy, exploiting differences between communities, to prevent similar revolts from taking place. In that respect, Indian Muslims were encouraged to forge a cultural and political identity separate from the Hindus. In the years leading up to Independence, Mohammad Ali Jinnah became increasingly concerned about minority position of Islam in an independent India largely composed of a Hindu majority. Although a partition plan was accepted, no large population movements were contemplated. As India and Pakistan become independent, 14.5 million people crossed