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Economic Impact & People's Resistance

Overview
Cue WordsNotes
Economic Exploitation Overview British economic policies transformed India from global manufacturing hub into colonial supplier of raw materials. Exploitation triggered localized "People's Resistances" (civil, tribal, peasant uprisings) long before organized national movement.
1. Economic Impact: Three Phases of Colonialism
Cue WordsNotes
Mercantile Phase (1757–1813) Direct plunder of treasury. Company used Indian revenue to purchase Indian goods for export.
Industrial Phase (1813–1858) Charter Act 1813 ended Company monopoly (except Tea and China trade). India became market for Manchester textiles and exporter of raw materials (cotton, indigo).
Financial Phase (Post-1858) Export of British capital to India (Railways, Plantations, Banking) with guaranteed interest paid by Indian taxpayers.
2. Economic Impact: Drain of Wealth & Revenue Systems
Cue WordsNotes
Drain of Wealth Theory Propounded by Dadabhai Naoroji (1867) in Poverty and Un-British Rule in India. Components: Home Charges (pensions, debt interest, India Office costs), Council Bills, military spending. Prevented domestic capital formation. First scientific estimation by V.K.R.V. Rao (1931).
Permanent Settlement (1793) Cornwallis; Bengal/Bihar. Zamindars became owners; state revenue fixed permanently.
Ryotwari System (1820) Thomas Munro & Alexander Read; Madras/Bombay. Direct settlement with Ryots (cultivators) with periodic revenue revision.
Mahalwari System (1822) Holt Mackenzie & Robert Merttins Bird; North India/Punjab. Village unit (Mahal) collectively responsible for revenue.
3. People's Resistance: Civil & Tribal Uprisings
Cue WordsNotes
Sanyasi Revolt (1763–1800) Bengal civil uprising triggered by 1770 famine; memorialized in Bankim Chandra's Anandamath.
Vellore Mutiny & Paika Rebellion Vellore Mutiny (1806): First major sepoy mutiny over religious/dress dress codes. Paika Rebellion (1817): Odisha, led by Bakshi Jagabandhu.
Kol Mutiny & Santhal Hool Kol Mutiny (1831): Chhota Nagpur, led by Buddhu Bhagat against Dikus (outsiders). Santhal Hool (1855–56): Rajmahal Hills, led by Sidhu & Kanhu; led to creation of Santhal Parganas.
Munda Ulgulan & Rampa Rebellion Munda Ulgulan (1899–1900): Led by Birsa Munda against destruction of Khuntkatti system; led to Chota Nagpur Tenancy Act 1908. Rampa Rebellion (1922): Andhra, led by Alluri Sitarama Raju.
4. Peasant Movements
Cue WordsNotes
Indigo Revolt (1859–60) Bengal peasant struggle led by Digambar & Bishnu Biswas against forced indigo cultivation. Play: Nil Darpan by Dinabandhu Mitra.
Deccan Riots & Faraizi Movement Deccan Riots (1875): Against moneylenders, led to Deccan Agriculturists Relief Act 1879. Faraizi Movement: Bengal, founded by Haji Shariatullah.
🌾 Famine Commissions & Deindustrialization Evidence
  • Famine Commissions: Recurring famines under colonial rule led to the Strachey Commission (1880) and the MacDonnell Commission (1901), which recommended famine codes and relief works, though implementation remained weak.
  • Deindustrialization Evidence: The decline of Bengal's fine muslin (Dacca) and other traditional handicraft industries under competition from machine-made Manchester textiles is a commonly cited example of India's economic "deindustrialization" during the 19th century.
UPSC High-Yield Recall & Exam Traps
Cue WordsNotes
Charter Act 1813 Exceptions Ended Company monopoly in India except for Tea and China trade (ended in 1833).
First Monopoly / Lapse States Hyderabad (Subsidiary Alliance 1798), Satara (Doctrine of Lapse 1848).
Drain Theory Estimations Naoroji first explained concept (1867); V.K.R.V. Rao first scientific estimation (1931).
Santhal Hool Timing Occurred in 1855–56, immediately preceding 1857 Revolt.