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
Colonial India and valuable parts of the British Empire and thus became known as "the jewel in the British crown". According to modern data, the Mughal Empire was a very wealthy country with many independent princely states therefore it is possible that the country's governance system was outsourced to the Europeans. Long after the decline of the Roman Empire's sea-borne trade with India, the Portuguese were the next Europeans to sail there for the purpose of trade, first arriving by ship in May 1498. The closing of the traditional trade routes in western Asia by the Ottoman Empire, and rivalry with the