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 joined Pakistan, and 3 (Punjab, Bengal and Assam) were partitioned between India and Pakistan. In 1950, after the new Indian Constitution was adopted, the provinces in India were replaced by redrawn states and union territories. Pakistan, however, retained its five provinces, one of which, East Bengal, was renamed East Pakistan in 1956 and became the independent nation of Bangladesh in 1971. Presidencies and provinces of British India The Provinces of India, earlier Presidencies of India and still earlier, Presidency towns, were the administrative divisions of British governance in the subcontinent. Collectively, they were called British India. In one form or