British Industrial Policy

British Industrial Policy Since the advent of British, its only aim was the ruthless exploitation of Indian riches. The industrial policy was not any different from this trend. This policy proved disastrous to the development of indigenous capitalism and industry. By the middle of the 19th century, Queen Victoria's reign saw Britain accumulate vast quantities of capital to such an extent that not all of it could de profitably utilised at home. India with its amazing potentialities of raw materials, cheap labour and so forth attracted British entrepreneurs for sale investments. Competition from the newly industrialised nations in Europe and America also chased Britain towards India. But its policy was not to make India an industrial capitalist economy, but to make it a dependent and underdeveloped economy. Its investments in plantations and mines, jute mills, banking, insurance, ship- ping and export-import appear undoubtedly significant innovations. But actually these were promoted through a system of interlocking managing agency firms which usually combined financial, commercial and industrial activities, all working under the umbrella of foreign control, constantly inhibiting the development of Indian economy. Free trade policy, favours shown to British industry, foreign banking system working in conjunction with the goverment's financial and exchange policy etc. made the Indian rising capitalist class panic-stricken. In several instances even Indian-controlled enterprises were dominated by foreign owned financial agencies.