For centuries, the Indian subcontinent—encompassing modern India, Pakistan, and Bangladesh—stood among the world’s most prosperous regions, thanks to fertile river systems (like the Ganges) and a booming spice trade. Yet following two centuries of British dominion, India emerged as one of the globe’s most impoverished nations. How did this transformation happen?

Initially, Europeans, especially the Portuguese, Dutch, and later the British, arrived as traders, lured by Asia’s superior spices and textiles. The English East India Company (an exclusive trading corporation) established strategic posts, aiming purely for commerce rather than governance. Over time, however, as India’s preeminent Mughal Empire weakened due to constant expansion, rebellions, and conflict, the Company exploited the situation, acquiring the right to collect local taxes. Controlling tax revenue granted them unparalleled influence over regional rulers.

This “corporate conquest” channeled enormous wealth from India to Britain. Rigorous taxation practices forced farmers to grow cash crops like indigo or opium instead of food, leading to recurring famines. Traditional Indian industries—textiles, steelmaking, and shipbuilding—were systematically dismantled through punitive levies and restrictive regulations. These steps accelerated Britain’s own mechanized production, fueling the Industrial Revolution while deindustrializing India.

Eventually, after uprisings such as the 1857 revolt, the British Crown assumed direct administration under the British Raj. The newly formed Indian Civil Service (predominantly British personnel) governed with a core objective: extracting revenue. Divide-and-rule tactics set different religious and social groups against each other, preventing unified resistance. Educational pathways and social structures were re-engineered to favor British interests and keep Indians disempowered.

By the late 19th century, India had been transformed into a vast source of raw materials and cheap labor for British factories, with economic policies and cultural re-education firmly entrenching colonial power. This legacy of wealth drain and societal division cast long shadows, shaping India’s modern history and contributing to its enduring struggles with poverty and social discord.

Credits
Research: Mrs Scope
Audio: Seb. Soto
Writing, voice over, and animation: Avery from History Scope

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Sources:
S. Tharoor (2016) Inglorious Empire. C Hurst & Co. London
A. von Tunzelmann (2007) Indian Summer: The Secret History of the End of an Empire. Simon & Schuster. New York.