"British colonial rule in India executed a systematic economic exploitation that involved the extraction of India's resources and wealth to benefit Britain." Justify the given statement with valid explanation. "The disinvestment policy of India under the 1991 reforms involved selling of part of the government's stakes in Public Sector Undertakings (PSUs)." Explain the rationale behind the decision undertaken by the government.

Question

Accepted Answer

I **justify** the statement that British colonial rule executed systematic economic exploitation. Justification:

1. **Resource Extraction:** India's resources and wealth were diverted to Britain through trade surplus.

2. **De-industrialisation:** Indian handicraft industries were destroyed to benefit British industries.

3. **Exploitative Land Systems:** Zamindari system extracted high revenues from farmers.

4. **Commercialisation:** Forced production of cash crops for British industries.

5. **Infrastructure for British Interests:** Roads and railways built to serve colonial interests.

**Forms of Exploitation:**
- India remained agricultural country throughout British period
- Large-scale destruction of handicrafts and cottage industries
- British gained complete control over Indian market
- India transformed into primary producing country
- Economic drain of resources to Britain