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 of Wandiwash, after which the British East India Company was the supreme military and political power in southern India as well as in Bengal. In the following decades it gradually increased the size of the territories under its control. The enclaves of Pondichéry, Karaikal, Yanam, Mahé and Chandernagore were returned to France in 1816 and were integrated with the Republic of India in 1954. Denmark–Norway held colonial possessions in India for more than 200 years, but the Danish presence in India was of little significance to the major European powers as they presented neither a military nor a mercantile threat.