The focus of the economic policies pursued by the colonial Government was the protection and promotion of economic interest of her home country. These policies intended to transform India into a supplier of raw materials and consumer of finished industrial products from Britain. Impact of policies: The impacts of these policies were as under:
1. India became a supplier of raw materials and consumer of finished goods produced in Britain.
2. The agriculture sector continued to experience stagnation and deterioration during British rule.
3. The vast majority of people in India led a miserable life.
4. Many of the cottage and small scale industries declined under British rule.
5. More than half of India’s foreign trade was restricted to Britain.
6. The country’s growth of aggregate real output during the first half of the 20th century was less than this percent.
7. There was hardly any capital goods industry to promote further industrialisation of India.
8. The contribution of the new industrial sector to the gross domestic product remained very small.
9. The industrial sector cried for modernisation and diversification.
10. There was rampant poverty and unemployment.