Could the British follow an industrial policy beneficial for Britain as well as India? Explain.

Question

Accepted Answer

Yes, certainly there could have been an industrial policy which would have mutually benefited both nations:

1. Britain could first fulfill its domestic needs and then export the surplus to its industries abroad.

2. Instead of ruining the handicraft industry of India, Britain could have taken it over under its control and earned income, which it should have spent partly for Britain's growth and partly for India's development.

3. It should have spent on human capital formation in India and taken advantage of it in the form of increased output, better technology and more revenue.

Thus, a mutually beneficial policy was possible, but the colonial rulers chose to exploit India instead.