Question

British land tax system completely exploited the Indians. How ?​

Answer 1

Answer:

In India, colonial exploitation is a long history spread over nearly 200 years. It would be better to look at the forms of colonial exploitation in India and its consequences.

Exploitation of India which was started initially in the form of trade, later on other forms of exploitation were made through investment income in the form of dividends and profits and through payment of costs of British administration in the form of home charges. These included salaries of British army and civil officers, payment of pensions, furloughs and other benefits and also payment of interest on Sterling debt.

Thus the main forms of colonial exploitation in India were:

(i) Trade policies with the objective of developing a colonial pattern of trade in which India became an exporter of primary products like raw materials and food stuffs and an importer of manufactures;

(ii) Encouragement of British Capital to participate in direct investment in Indian consumer goods industries;

(iii) Encouragement of finance capital in the country through Managing Agency System for appropriating a major portion of the profits through various malpractices; and

(iv) Forcing India for paying the costs of British administration and also to finance the wars and expeditions conducted by the British Government.

To fulfill its formality, Britain simply authorised the Government of India to issue more currency on the security of Sterling Balance held in England and thereby simply exported inflation to India resulting huge burden on Indian people.

Consequences of Colonial Exploitation:

Various forms of colonial exploitation ultimately resulted the following consequences on Indian Economy