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
Indian Civil Service (British India) State for India, and 3 central departments under joint Provincial and Imperial Control. The finances of India under British rule depended largely on land taxes, and these became problematic in the 1930s. Epstein argues that after 1919 it became harder and harder to collect the land revenue. The suppression of civil disobedience by the British after 1934 temporarily increased the power of the revenue agents, but after 1937 they were forced by the new Congress-controlled provincial governments to hand back confiscated land. The outbreak of the Second World War strengthened them again, but in the face of the Quit India