explain the eonomic cause for the first war of independence
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Answer:
Following are three important causes of the First War of Independence in India:
Exploitation of Economic Resources - Under British rule, India was turned into an exporter of raw materials like raw cotton, raw silk, indigo, tea, food grains, etc. British goods were brought in either duty free or at nominal duty rates. On the other hand, Indian products were subjected to high import duties in England. Indian handmade goods were not in a position to compete with machine made British goods. This resulted in the ruin of Indian industry, unemployment among artisans, reduction in agricultural surplus and a steep increase in the price of raw materials.
Drain of Wealth - Till the Battle of Plassey (1757), the British brought gold into India in order to buy Indian cotton and silk. However, after the conquest of Bengal, the purchase was done with the surplus revenue from Bengal profits acquired from duty free inland trade. This effectively unilateral transfer of wealth from India to England is called the ‘Drain of Wealth’. The drain included the salaries, incomes and savings of the Englishmen, British expenditure in India on military goods, office establishments, interest on debts, military expeditions, etc.
Decay of Cottage Industries and Handicrafts - Due to the British policy of preferential treatment to British businesses, Indian industries were gradually destroyed. By the middle of the 19th century, export of cotton and silk goods had practically ceased. The misery of the unemployed artisans was further complimented by the disappearance of their traditional patrons and buyers, i.e., the princes, chieftains and zamindars.
The eonomic cause for the first war of independence:
• The Britishers had drained India of all her wealth and natural resources by selfish economic policies.
• The taxes collected by the government were utilized by the British to pay them wages and salaries.