In modern times, India is growing rapidly on its path of development. The development of the country’s economy has attracted the world. Some foreign organizations claim that India can become the world’s largest economy in the near future. It may even overtake countries like the US.
On the other hand, if we look back at history, India would have been a superpower even in modern times, if the British had not looted a lot of money from here. Due to the British taking away money and valuables from here, a famine situation arose in the country near independence due to which its economy was badly affected.
India can also develop like Japan.
During the Meiji period from the mid-19th century to the early 20th century, Japan embarked on a massive industrialization campaign, exporting goods and importing Western technology, building railways and telegraphs, and building various industries. India was also capable of this but India had little money to invest in industries and import machinery and technology from the West. Famine also came with it.
Even if Britain cannot repay India’s debt
A 2017 study by economic historian Utsa Patnaik revealed that the British colonial government looted around $45 trillion from India from 1765 to 1938, ET reported. This amount is 15 times the annual GDP of the UK today. In such a case, he cannot return India’s money even if he wants to. The British looted to establish their country as a great power.
How did the British loot India’s money?
During the East India Company’s control of the Indian market, Indian producers were allowed to import Indian goods free of charge from the Company to export their goods. Later, under the British Crown, foreign buyers of Indian goods paid with bills of exchange, which were bought in gold or British currency. These items collected in India were transported to London and one-third was paid to the Indian exporters.
Indian export earnings remained in Britain and the money received by Indians in return for exports was paid as taxes to the British government in India. This meant that instead of investing in India, Britain was using the huge export earnings to expand its rule and invest in building infrastructure in America and Europe. Simply put, Britain made a profit by exporting imported goods from India at a high price.
Understand the calculation, how the British looted 45 billion dollars.
Patnaik has taken four periods between 1765 and 1938 in his research. This amount is calculated by taking the midpoint of each period and at an interest rate of 5 percent below the current market rate, which equates to $45 trillion in modern times.
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