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 were numerically inferior to the Bengali armed forces. At the Battle of Plassey on 23 June 1757, fought between the British under the command of Robert Clive and the Nawab, Mir Jafar's forces betrayed the Nawab and helped defeat him. Jafar was installed on the throne as a British subservient ruler. The battle transformed British perspective as they realised their strength and potential to conquer smaller Indian kingdoms and marked the beginning of the imperial or colonial era in South Asia. British policy in Asia during the 19th century was chiefly concerned with expanding and protecting its hold on India,