Shodh Prabha: A Multidisciplinary Journal

The Structure of Economic Exploitation in Colonial India and Its Long-Term Impacts

This paper critically examines the structure of economic exploitation in colonial India under the British East India Company and later the British Raj, focusing on how systematic policies reshaped India’s economy to serve imperial interests. It analyses key mechanisms such as exploitative land revenue systems, the deindustrialisation of indigenous industries, the commercialisation of agriculture, and the continuous drain of wealth to Britain. Drawing upon the theoretical insights of Dadabhai Naoroji and R. C. Dutt, the study highlights how colonial economic policies disrupted traditional economic structures and created conditions of poverty, inequality, and dependency. The paper further evaluates the long-term impacts of these exploitative structures on post-independence India, including persistent regional disparities, agrarian distress, and a weak industrial base. It argues that colonialism was not merely a political phenomenon but an economic system that institutionalised underdevelopment. By linking colonial policies with contemporary economic challenges, the study provides a historical foundation for understanding ongoing issues of inequality and structural imbalance in India’s development trajectory.