The colonial era in India was not only marked by political subjugation but also systematic economic exploitation. According to Oxfam International’s latest report, “Takers, Not Makers,” presented at the World Economic Forum, the British drained a staggering $64.82 trillion from India between 1765 and 1900.
According to the report, “This would be enough to carpet the surface area of London in British pound 50 notes almost four times over.” This unprecedented enormous wealth extraction is symbolic of the manner in which colonial policies enabled the plundering of India’s economy and bolstered British prosperity. The Oxfam report also examines how this legacy continues to shape modern global inequalities.
Economic Policies: The Engine of Exploitation
British colonial policies systematically dismantled India’s thriving economy to serve imperial interests. The Permanent Settlement Act and oppressive land revenue systems forced Indian farmers into debt, stripping them of their land.
Simultaneously, trade monopolies like those wielded by the East India Company exploited India’s resources, ensuring that raw materials were exported cheaply to Britain while finished goods were sold back at exorbitant prices. India’s share of global industrial output plummeted from 25% in 1750 to a mere 2% by 1900, as highlighted in the Oxfam report. This deliberate suppression of local industries left India impoverished and economically dependent.
Also, India’s wealth of natural resources was systematically plundered under British rule. Cotton, indigo, tea, and spices were looted to sustain Britain’s industrial revolution, while the subcontinent’s traditional industries were sabotaged. For instance, Indian weavers, once globally renowned for their textiles, were reduced to poverty as British policies banned the export of Indian fabrics while flooding Indian markets with machine-made British textiles.
The report underscores that $33.8 trillion of the $64.82 trillion drained from India went directly to the wealthiest 10% in Britain, heightening inequality. India’s economy during the colonial period was strategically deindustrialised. British-imposed protectionist measures, such as high tariffs on Indian goods and tax incentives for British manufacturers, crushed India’s textile and artisan sectors.
India, once a major exporter of finished goods, was reduced to a mere supplier of raw materials for British factories. This transformation created widespread unemployment and decimated local economies. The report also traces the origins of modern multinational corporations to colonial ventures like the East India Company, which laid the groundwork for exploitative corporate practices that persist today.
Famines, Poverty and Cultural Theft
Colonial policies also exacerbated human suffering, with India experiencing numerous famines during British rule. The Bengal famine of 1943 alone claimed over three million lives, a tragedy directly linked to British wartime policies of grain diversion. These famines were not mere natural disasters but consequences of exploitative governance that prioritised imperial profit over human survival.
By the time the British left in 1947, India’s GDP per capita was among the lowest in the world, with millions trapped in abject poverty. The British also stripped India of its cultural heritage, looting priceless artefacts and treasures. The Kohinoor diamond, taken from India and now part of the British Crown Jewels, symbolises this cultural plunder. Such acts of piracy extended beyond physical artefacts to traditional knowledge systems. The Oxfam report cites the neem patent case as a glaring example of how indigenous knowledge continues to be commercialised without fair compensation.
A Modern Parallel: The Legacy of Colonial Inequality
The Oxfam report draws parallels between colonial exploitation and contemporary global inequalities. The wealthiest billionaires today, whose fortunes often stem from colonial-era monopolies, saw their wealth surge by $2 trillion in 2024 alone, reaching a collective $15 trillion. Modern supply chains, disproportionately reliant on cheap labour in the Global South, mirror the exploitative dynamics of colonial rule. Workers in these regions earn up to 95% less than their counterparts in the Global North, perpetuating cycles of dependency and poverty.
Shashi Tharoor’s book – Inglorious Empire
The Oxfam report rekindled memories of Shashi Tharoor’s book “Inglorious Empire” (published in India as “An Era of Darkness” – Oct 2016) which dismantled the myth that portrayed imperial rule as a progressive stage in the development of Asian and African nations. With rigorous research, compelling statistics, and sharp arguments, Tharoor countered the dominance of Eurocentric perspectives in social sciences that often perpetuate colonial narratives like the “white man’s burden”. The book’s widespread acclaim, including its status as a Sunday Times bestseller, makes it an excellent counter-narrative to imperialist historiography.
Tharoor systematically exposed the disastrous effects of British colonial rule on India’s economy, polity, and society. The book begins by addressing the economic devastation caused by British exploitation. India’s share of the global GDP, which stood at 23% in 1700, fell to a mere 3% by 1947. Tharoor refutes claims that Indian industries failed due to competition with Western machinery, instead attributing the decline to deliberate British policies. For instance, the destruction of India’s thriving textile industry is labelled as “the first great de-industrialization in the modern world.”
He emphasises that British rule left India impoverished and famine-stricken, with nearly 35 million Indians perishing in famines, epidemics, and communal violence caused by colonial mis-governance and discriminatory policies. Tharoor vividly recounts historical events, such as the 1857 War of Independence and its brutal reprisals, including the Amritsar massacre of 1919.
He traces the British Empire’s rise in India, beginning with the East India Company’s dominance after the Battle of Plassey in 1757, followed by the Crown’s direct control after 1857. These events, he argues, illustrate how extortion, corruption, and violence were integral to British rule.
The book critiques apologists for colonialism, dismantling claims that the British introduced democracy, the rule of law, or railways for India’s benefit. Tharoor shows that these were tools of colonial exploitation, designed to serve imperial interests. Even the so-called benefits, like tea, cricket, and the English language, were unintended by-products of colonial policies aimed at consolidating British power.
Tharoor’s final chapters emphasise the social fragmentation caused by the “divide and rule” policy, which deepened divisions along caste, religious, and linguistic lines, culminating in the partition of India. He poignantly critiques colonial governance, calling Britain’s conduct “Brutish” for its role in famines and atrocities.
Tharoor’s passionate and incisive writing challenges the dominant imperialist historiography, making Inglorious Empire a crucial text for understanding India’s colonial experience. The book’s call for scholars from other colonised nations to contribute to this debate underscores its global relevance, offering a much-needed corrective to enduring misconceptions about the British Empire.