- Indian’s sea route trade to Europe started only after the arrival of Vasco da Gama in Calicut, India on May 20, 1498.
- The Portuguese had traded in Goa as early as 1510
- In 1858, the British Parliament passed a law through which the power for governance of India was transferred from the East India Company (EIC) to the British crown.
History of British Period during the British period
- Before the advent of the British, Indians practically lived in villages.
- On the basis of the form of colonial exploitation, economic historians have divided the whole period into three phases:
- Namely the Period of merchant capital, the Period of industrial capital, the Period of finance capital.
Period of Merchant Capital
- The period of merchant capital was from 1757 to 1813.
- During this period, India had been considered as the best hunting ground for capital by the East Indian Company to develop industrial capitalism in Britain.
Period of Industrial Capital
- The period of Industrial capital was from 1813 to 1858.
- During this period, India had become a market for British textiles.
Period of Finance Capital: 1857-1947
- The third phase was the period of finance capital starting from the closing years of the 19th century and continuing till independence.
- During this period, finance imperialism began to entrench itself through the managing agency firms, export- import firms, exchange banks and some export of capital.
- The poor Indian taxpayer had been compelled to finance the construction of railways.