For Indian nationalists the issue of economic exploitation under colonial rule was a central issue. Images of pre-colonial fabled riches of India contrasted with the poverty of British India. The Swadeshi movement strengthened the loyalty to the national economy. Modern ideas made people realise that poverty was preventable. Indian nationalists saw rapid industrialisation of the economy as the path towards both growth and social equity. Development of heavy and machine-making industries, expansion of the public sector and holding of a large cooperative sector were considered very important.

What was the paradox of the Industrialization process integrated by Colonial powers?

Colonizers focused more on luxury goods rather than the necessary items for the nation. The Indian labour population was not skilled in British made machinery. Colonial industrialization destroyed the existing small scale industries, handicrafts guilds and other local initiatives as part of mechanization. India didn't have basic infrastructure such as electricity to become an industrialized nation.

Colonial industrialization destroyed the existing small scale industries, handicrafts guilds and other local initiatives as part of mechanization.

The extensive importation of cheap European piecegoods and utensils, and the establishment in India itself of numerous factories of the Western type, have more or less destroyed many village industries. The high prices of agricultural produce have also led many village artisans to abandon their hereditary craft in favour of agriculture…The extent to which this disintegration of the old village organisation is proceeding varies considerably in different parts. The change is most noticeable in the more advanced province