unit-5-colonialism---the-new-adminstrative-system---pre-and-post-1857-

Unit-5 Colonialism - The New Adminstrative System - Pre And Post 1857

The aim of this Unit is to study the pattern and growth of British Administrative System before and after 1857.

How did the policy of free trade help British Industry. 


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Learning Pundits Content Team

Written on Apr 24, 2019 6:47:25 PM

The British continued to exploit India's economy. The burden of the East India Company's London establishment and of dividends to its shareholders was replaced after 1858, by the expenditure on the Secretary of State's India Office. The Indian debt in England which was already considerable as a result of the Company's military ventures and suppression of the mutiny was further increased, when compensation to the Company's shareholders was added to Government of India's account. The Home charges also included, pensions to British Indian officials, costs of army training, etc. In 1901, the Home charges came to about $17.3 million. Both Home charges and private remittances were channelised through Indian exports as pointed out by the nationalist economists from Dadabhai Naoroji onwards. The character of economic drain which was originally mercantalist, underwent a change and it now took the form of exploitation through free trade. In the later stage it got linked with the structure of British Indian finance capitalism. In fact India's export surplus became vital for Britain’s balance of payments by the end of the nineteenth century. In the nineteenth century the developing capitalist economies of Europe had erected high tariff walls.