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 the king insisted that Gama should pay customs duty like any other trader, which strained their relations. Though Portugal presence in India initially started in 1498, its colonial rule ranges from 1505 to 1961. The Portuguese Empire established the first European trading centre at Kollam, Kerala. In 1505 King Manuel I of Portugal appointed Dom Francisco de Almeida as the first Portuguese viceroy in India, followed in 1509 by Dom Afonso de Albuquerque. In 1510 Albuquerque conquered the city of Goa, which had been controlled by Muslims. He inaugurated the policy of marrying Portuguese soldiers and sailors with local Indian