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Exercises · Q4

Q.Why is the Indian economy under British rule often described as a 'feeder economy'?

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The Indian economy under British rule is often described as a 'feeder economy' because its structure was shaped to serve the needs of British industry rather than India's own balanced development. On one side, India exported raw materials — raw cotton, jute, indigo, oilseeds and various minerals — that British factories needed as industrial inputs. On the other side, India served as a large market into which British factories could sell their finished manufactured goods, particularly machine-made textiles, often displacing Indian producers of similar goods in the process. …

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