What is the meaning of Colonialism?

What is the meaning of Colonialism? 
What was the focus of the economic policies pursued by the colonial government in India? 

Answer:

Colonialism relates to foreign domination. Colonialism refers to a system of political, economic, and social relations between two countries, of which one is ruler and has full control over its colony. The people living in a colony cannot take independent decisions in respect of its development and utilisation of its resources. Colonies are exploited by the rulers and they use the resources of its colony for the benefit of its own country.

The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interest of their home country rather than the development of Indian Economy.

Thus at the time of independence in 1947 India was a poor and underdeveloped country. Agriculture was in poor condition and mineral resources were not fully used. There were only a few industries and many small and cottage industries had declined under British Rule. Millions of people were unemployed not because they were unwilling to work but because there were no jobs to be found. Per capita income of Indians was one of the lowest in the world, indicating that average Indian was extremely poor and could not afford even basic necessities of life. India led a miserable life.

What were the impacts of these policies?

British Rule and the Exploitation of India:

During British period of dominance which started from the Battle of Plassey there was a massive drain of wealth from India to England. Economic Historians study the exploitation into three phases:

(i)           The period of merchant capital: Starting from the battle of plassy and continued till the end of 18^th century. The Indian economy was exploited in the name of trade. Land revenue was continuously raised  and collected and the whole amount was treated as profit of the company. British officers also started illegally accumulating large personal wealth

(ii)          The period of Industrial Capital: starting from the beginning of nineteenth century and continuing till the end of 19^th century. In this period India was developed as a market of British goods. They did not established manufacturing industries. Some industries which were developed in India were such which could not be established in Britain due to geographical reasons e.g. tea and Jute.

(iii)          The period of finance capital: Starting from the late nineteenth century and continued till independence. British started massive investments in India in Railways and the cost was to be paid by India. Some investments were also made in the plantations sector due to geographical factors and availability of cheap labour in India.

(iv)         Besides railways and plantations the British private capital found its way into tramways, mining, oil, banking and finance and industries such as paper, rubber, textile, match box, sugar, engineering etc. But it was negligible.

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