Question

“Many economists believe that India paid a very heavy price for the British industrialisation, by becoming their feeder economy.”
Justify the given statement with any one valid argument.

Hint:

A "feeder economy" means an economy that supports another at the cost of its own development. India’s role under colonialism perfectly fits this description.

Answer 1

Yes, the statement is valid. During British rule, India was systematically reduced to a feeder economy, which supplied raw materials to fuel the British industrial revolution while consuming their finished goods.
One valid argument: India’s traditional industries, such as textiles, were deliberately destroyed through unfair trade policies. The British imposed heavy duties on Indian exports while allowing duty-free import of British manufactured goods. This made India a major supplier of cotton, jute, indigo, and other raw materials, but it could not develop its own industries due to lack of capital, infrastructure, and protection.
Thus, India remained economically backward while serving the interests of British industries.