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
History of South India as a princely state within British India. The Nizam of Hyderabad sought to retain his autonomy through diplomacy rather than open war with the British. The Maratha Empire that stretched across large swathes of central and northern India was broken up, with most of it annexed by the British. South India during the British colonial rule was divided into the Madras Presidency and Hyderabad, Mysore, Thiruvithamcoore (also known as Travancore), Cochin, Vizianagaram and a number of other minor princely states. The Madras Presidency was ruled directly by the British, while the rulers of the princely states enjoyed considerable internal autonomy.