Phases of Indian Economy before Independence

                 Phases of Indian Economy before Independence

1600-1757:The East India Company was a purely trading company dealing with import of goods and precious metals into India and export  of spices and textiles.

1757 - 1813 (The Merchantilist Phase)
1.The East India Company monopolized trade and began direct  plunder of India’s wealth.
2.They could impose their own prices that had no relation to the  costs of production. This was the phase of buccaneering  capitalism whereby wealth flowed out of the barrel of the trader’s guns.
3.The company used its political power to monopolize trade & dictate terms to the weavers of Bengal
4.The company used revenue of Bengal to finance exports oi Indian goods.

1813-1858 (The Industrial Phase)
The commercial policy of the East India Company after 1813 was guided by the needs of the British industry
1.The British mercantile industrial capitalist class exploited India as Industrial Revolution in Britain completely transformed Britain’s  economy
2.Charter Act of 1813 allowed one way free trade for British citizens resulting in Indian markets flooded with cheap & machine made  imports. Indians lost not only their foreign markets hut their markets   in India too.
3.India was now forced to export raw materials consisting of raw  cotton jute and silk, oilseeds, wheal, indigo and tea, and import   finished products.
4.Indian products had to compete with British products with heavy   import duties on entry into Britain.

1860 & After (Finance Colonialism): The essence of 19th century colonialism lay in the transformation of India into a supplier of  foodstuffs  and raw materials to the metropolis, a market for metropolitan  manufactures and a field for investment of British capital.
1.Started with the emergence of the phase of Finance Capitalism m  Britain. The rebellion of 1957 was the key factor in the change of   the nature of the colonialism.
2.The British introduced roads and railways, post and telegraph,  banking and other services under the ‘guaranteed interests’  schemes (government paid a minimum dividend even if profits were nonexistent). Various investments by the British capitalists  were also made in India.
3.As a result of this, the burden of British public debts kept on increasing and India became, in
the real sense, a colony of Britain.