Which of the following is a structural change that happened in Indian economy due to British rule?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Dependency on British industrialisation
Under British colonial rule, India’s economy underwent a structural transformation that shifted it from being a self-sufficient agrarian and artisanal economy to one subordinate to British industrial needs. Key aspects included:
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Deindustrialisation – decline of Indian handicrafts and traditional industries due to competition from machine-made British goods.
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Commercialisation of agriculture – focus on cash crops (indigo, cotton, jute) for export rather than food grains for local consumption.
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Import dependence – India became a major market for British manufactured goods and an exporter of raw materials, creating an economic dependency.
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Drain of wealth – resources and profits were systematically transferred to Britain, limiting domestic capital formation.
This dependency on British industrialisation was a fundamental structural change that shaped India’s colonial economy.