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
Political warfare in British colonial India Political warfare in British colonial India Political warfare in British colonial India aided a British minority in maintaining control over large parts of present-day India, Pakistan, and Burma. The East India Company obtained a foothold in India in 1695 and from that start expanded the territory it controlled until it was the primary power in the subcontinent. After the Indian Rebellion of 1857 the British Government nationalised the Company creating the British Raj. The Company lost all its administrative powers; its Indian possessions, including its armed forces, were taken over by the Crown pursuant to the provisions of the Government