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History & Civics

How did the end of the East India Company's rule bring in grave economic perils in India?

Revolt 1857

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Answer

The uprising of 1857 ushered in the era of economic exploitation in the following manner-

  1. India was turned into a typical colonial economy, exporting raw material and importing finished goods.
  2. The salary and allowances of the Secretary of State and members of the India Council, the civil servants and military officers were a large drain on the country's resources.
  3. Peasants were impoverished under the British rule. The indigo peasants of Bihar revolted on a large scale in 1866-68.
  4. Rural artisan industries such as handicrafts, spinning and weaving collapsed.
  5. Indians had to pay heavy interests and dividends on the British capital invested in India. The British invested their surplus capital in India in railways, plantations, coalmines, jute mills, shipping etc.

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