The Colonial Era in India
Railways and the reshaped economy
Find out how the railways and British policies reshaped India's economy.
The British changed India's economy from a self-sufficient farming system, supported by crafts and manufacturing, into two things: a supplier of raw materials for British industry, and a market forced to buy British goods.
To show how, the chapter looks at the railways, "often cited as a colonial blessing".
It accepts what is true. The railways did bring people closer together and did connect India's internal market. Those benefits were real.
But look at the design. The network was built mainly to carry raw materials from the interior to the ports for export, and to spread British factory goods across India.
Railway routes largely ignored existing trade routes in order to serve colonial business. A network built for India would have followed where Indians already traded; this one followed where the cotton had to reach a ship.
There was a third purpose too: moving armies quickly from their bases (cantonments) to fight a distant rebellion or war.
And then: who paid? Most of the railways were paid for by Indian tax money, so Indians funded something that mainly served British business and military needs. The same is true of the telegraph network. It was not a gift.
Even the running costs of colonial rule were paid by Indians: the government machine, the military bases and the lavish lifestyles of British officials were all paid for by Indian taxes. The chapter sums it up in four words: "Indians funded their own subjugation."
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