How Much Britishers Looted From India?

The Economic Cost of British Rule in India (1757-1947) – Inflation Adjusted

The British rule in India, from the time of the East India Company’s dominance to direct Crown rule, was marked by economic exploitation and the systematic drain of wealth. The economic cost of colonial rule can be understood through various factors such as revenue extraction, deindustrialization, excessive taxation, and forced economic policies that benefited Britain while impoverishing India. This article quantifies these costs in Indian rupees, adjusting them for modern-day inflation to assess the long-term damage inflicted on India’s economy.

1. Plunder by the East India Company (1757-1858)

The British East India Company, following its victory in the Battle of Plassey (1757), established itself as the de facto ruler of Bengal, and subsequently, other parts of India. The immediate impact was the massive transfer of wealth to Britain.

• Plunder from Bengal (1757-1765): Between 1757 and 1765, an estimated ₹5 crore during that time was taken from Bengal through looted treasures, direct tributes, and unjust taxation. .
• Drain through Diwani Rights (1765 onwards): After the grant of Diwani (revenue collection rights) of Bengal, Bihar, and Orissa in 1765, the Company extracted an average annual surplus of ₹2 crore during that time.
• Export Surplus to Britain: Between 1765 and 1815, Indian goods worth ₹50 crore during that time were exported to Britain, but India received almost no payment in return.

2. Deindustrialization and Destruction of Indian Handicrafts (1800-1900)

Before British rule, India was one of the largest producers of textiles and handicrafts. However, British policies destroyed Indian industries:

• Decline in Textile Industry: In 1800, India’s share in the world textile trade was 25%, but by 1900, it fell to less than 2%. Millions of weavers were left jobless.
• Imports of British Goods: In 1820, India imported British textiles worth ₹2 lakh, but by 1850, this amount rose to ₹20 crore annually during that time
• Decline in Employment: In Bengal alone, the decline of weaving and artisanal industries resulted in the unemployment of nearly 30 lakh people by the mid-19th century.

3. Unfair Taxation and Land Revenue Policies (1800-1947)

The British imposed heavy taxes that crushed Indian peasants and zamindars.

• Permanent Settlement (1793): By 1850, over ₹50 crore was extracted annually from Indian peasants during that time.
• Ryotwari System (Madras, Bombay): Land taxes were set at 50% to 60% of total produce, leaving cultivators with little to survive on.
• Tax Burden on Peasants: By 1900, over ₹100 crore was collected annually in land revenue during that time.

4. Famines and Economic Mismanagement

British economic policies directly led to repeated famines in India, causing the deaths of millions.

• Great Bengal Famine (1770): Resulted in the deaths of 1 crore people.
• Famines of 1876-78: An estimated 50 lakh people perished
• Bengal Famine (1943): Due to wartime policies, over 30 lakh people died. British authorities exported ₹50 crore worth of grain during that time

5. Railways, Infrastructure, and the Hidden Cost

The British often claimed they brought infrastructure, but this was largely designed for their economic advantage rather than Indian development.

• Railway Investment (1850-1947): Over ₹1,000 crore was spent, but ₹800 crore in profits went to British companies during that time.
• Irrigation Neglect: Only ₹20 crore was spent on irrigation between 1850 and 1900 during that time
• Debt Imposed on India: By 1947, India’s external debt stood at ₹3,000 crore

6. The Drain of Wealth (1858-1947)

The most significant economic burden was the systematic drain of wealth.

• Annual Drain: Between 1860 and 1947, an average of ₹30 crore to ₹40 crore per year was sent to Britain during that time
• Total Drain: Scholars estimate the total economic drain from India to Britain between 1757 and 1947 to be over ₹10,00,000 crore at that time

7. World War Contributions and the Final Blow

India was forced to contribute massively to Britain’s war efforts in both World Wars.

• World War I (1914-1918): India provided ₹150 crore in cash and supplies at that time.
• World War II (1939-1945): India was forced to fund the war with ₹2,500 crore at that time.

Conclusion

The economic cost of British rule in India was devastating. From the plunder of Bengal to the destruction of industries, excessive taxation, and wealth drain, India suffered enormous financial losses amounting to thousands of lakh crores of rupees in today’s value. While Britain prospered, India was left impoverished, underdeveloped, and debt-ridden by the time of independence in 1947. The British rule not only robbed India of its wealth but also crippled its economic foundation, leaving a long-lasting impact that took decades to recover from.

As Per Oxfam recent report britishers in total looted USD 63 trillion from India while that is lowest estimate.