UK extracted $64.82 trillion from colonial India, richest 10% benefited most: Report

A new report has revealed that between 1765 and 1900, the United Kingdom extracted approximately $64.82 trillion from colonial India. Of this amount, $33.8 trillion, representing 52% of the wealth, was transferred to the wealthiest 10% of Britons. The report highlights that the emergent middle class in Britain also benefited significantly, receiving 32% of the extracted wealth. The remaining 16% was distributed among other sections of society. This wealth transfer, according to the report, profoundly shaped the economic and social landscape of both Britain and colonial India.

The report emphasizes the dramatic decline in India's industrial output during British colonial rule. In 1750, India accounted for roughly 25% of global industrial production. By 1900, however, this share had fallen to just 2%. The report attributes this decline to Britain’s restrictive policies that systematically undermined India’s industrial sectors, particularly textiles. By imposing tariffs on Indian textiles and promoting British manufactured goods, the colonial administration severely hindered India’s industrial growth, making the Indian economy heavily dependent on British exports and trade policies.

The British East India Company’s role in the economic exploitation of India is a central focus of the report. The company, which operated with significant autonomy, is described as a key instrument in extracting wealth from India. The report asserts that the company’s monopolistic control over various industries, including the opium trade, laid the foundation for modern multinational corporations. These corporations, like the East India Company, created vast profits for the Global North by exploiting labor and resources in colonized regions, continuing the pattern of wealth extraction that persists today.

The issue of labor exploitation during the colonial period is addressed in the report, which highlights the continued wage disparity between the Global South and Global North. Workers in the Global South earn between 87% and 95% less for work of equal skill compared to workers in the Global North. This wage gap, the report argues, is a direct consequence of the colonial legacy, which established systems of cheap labor and resource extraction in colonies. Multinational corporations based in the Global North continue to benefit from these practices by maintaining control over global supply chains, which rely on low-wage labor in the Global South.

The report also provides a detailed account of the opium trade, which played a significant role in both British economic interests and imperialism. The British East India Company held a monopoly on opium production in India and facilitated its export to China, where it contributed to the Opium Wars and China’s ‘century of humiliation.’ The cultivation of poppy in India was concentrated in poorer regions, which received minimal public investment in healthcare, education, and infrastructure. The legacy of this underdevelopment continues to affect these regions, with ongoing disparities in literacy rates, public services, and economic development.

Furthermore, the report examines the social implications of British colonial rule, particularly the reinforcement of the caste system in India. British colonial policies formalized the caste system, entrenching social divisions that persist today. The colonial administration utilized the caste system to maintain control over the Indian population, creating rigid social boundaries that have had long-lasting effects on Indian society. The report underscores that the legacy of these policies continues to shape economic and social inequalities in India and other former colonies.

In conclusion, the report stresses that the colonial legacy of exploitation and inequality is still evident in modern global economic systems. The structural inequalities established during colonialism continue to favor the wealthiest nations and corporations, perpetuating a cycle of economic dependency and underdevelopment in the Global South. The exploitation of cheap labor and resources from former colonies continues to be a major factor in the wealth accumulation of the Global North. The report argues that these historical patterns of wealth extraction have contributed to the deeply unequal world we live in today.