Three Stages of Colonialism and economic impact of British rule in India by Lokesh Jindal

Following Farukhsiyar's Farman, the East India Company resorted to privileged trade. Victory in the battle of Plassey transformed the company from a commercial entity into a political power. This stopped the inflow of bullion to India and initiated the drain of wealth. This phase (1757-1813) is known as the Merchant capital phase of colonialism. Charted Act of 1813 which deprived the East India Company of its monopoly power, initiated a new phase of colonialism known as the Industrial capital phase (1813-1860). Finally, the post-1860s witnessed a new phase of colonialism in the form of the Finance capital phase. These three phases together transformed India into a classical colony. It led to the commercialization of agriculture and subsequent famines, deindustrialization and unemployment, retarded economic growth, and poverty. #ias #upsc #india #ssc #modernindianhistory #history #modern