Solution: The arrival of colonialism in India caused huge economic changes, disrupting the industry, trade, and agriculture. The handloom business was virtually destroyed, and weavers were rendered jobless, thanks to cheaply manufactured textiles from England. During the colonial period, India became further integrated into the global capitalist economy. India was a major source of manufactured goods to the world market before it was colonized by the British. India became a supplier of raw resources and agricultural products after colonization, as well as a consumer of manufactured goods, mostly to the profit of industrializing England.
However, rather than entirely destroying established economic institutions, India’s market economy expansion gave new chances for some merchant communities, who were able to enhance their status by reorienting themselves to shifting economic circumstances.
In certain cases, new towns sprang up to take advantage of colonialism’s economic benefits.
Marwaris, India’s most prevalent and well-known commercial community, presents an excellent example of this procedure.