Q. Do you think that new economic reforms of British rule have disrupted the old economic system of India? Substantiate your answer with suitable examples.

Model Answer:

British Economic Reforms and Disruption of Traditional Indian Economy

The British colonial economic reforms systematically dismantled India’s pre-colonial economic system, transforming a self-sufficient economy into a colonial appendage serving British industrial interests, fundamentally altering its agrarian structure, industrial base, and social fabric.

Transformation of Agrarian Structure

The British land revenue systems completely overturned traditional land relations through commodification of land:

– Permanent Settlement (1793) in Bengal created parasitic absentee landlords (Zamindars), destroying community ownership and customary rights of cultivators
– Ryotwari System in Madras and Bombay Presidencies imposed heavy taxation directly on cultivators, leading to widespread peasant indebtedness and land alienation
– Social Transformation: A.R. Desai argued these reforms created new exploitative classes – moneylenders and landless agricultural laborers
– Traditional System Collapse: The Jajmani system of reciprocal village exchange was replaced by cash economy and formal legal systems

Deindustrialization and Forced Commercialization

British policies systematically destroyed India’s thriving handicraft industries while reshaping agriculture:

– Textile Destruction: One-way free trade flooded markets with cheap Manchester textiles, decimating world-renowned Dhaka muslin and Surat textile industries
– Forced Cash Crops: Peasants were coerced into cultivating indigo, cotton, and opium instead of food grains, making them vulnerable to global price fluctuations
– Famine Creation: Shift from subsistence to commercial farming led to devastating famines like the Bengal Famine
– Resistance: The Indigo Rebellion of 1859 exemplified peasant opposition against forced cultivation

Colonial Capitalist Integration

Infrastructure development primarily facilitated colonial exploitation:

– Drain of Wealth: Dadabhai Naoroji demonstrated systematic wealth transfer through Home Charges, interest on public debt, and unfavorable trade terms
– Railway Network: Built to transport raw materials from hinterland to ports for British industries while distributing finished goods inland, not for interconnecting Indian markets
– Structural Subordination: India became supplier of raw materials and captive market for British manufactured goods

Conclusion:

British reforms destroyed village self-sufficiency, replaced production-for-use with production-for-market, creating structural underdevelopment that persisted post-independence.