Financial gains and losses

There were two incontrovertible economic benefits provided by India. It was a captive market for British goods and services, and served defence needs by maintaining a large standing army at no cost to the British taxpayer.

However, the economic balance sheet of the empire remains a controversial topic and the debate has revolved around whether the British developed or retarded the Indian economy.

Controversy remains over whether Britain developed or retarded India's economy.

Among the benefits bequeathed by the British connection were the large scale capital investments in infrastructure, in railways, canals and irrigation works, shipping and mining; the commercialisation of agriculture with the development of a cash nexus; the establishment of an education system in English and of law and order creating suitable conditions for the growth of industry and enterprise; and the integration of India into the world economy.

Conversely, the British are criticised for leaving Indians poorer and more prone to devastating famines; exhorting high taxation in cash from an inpecunious people; destabilising cropping patterns by forced commercial cropping; draining Indian revenues to pay for an expensive bureaucracy (including in London) and an army beyond India's own defence needs; servicing a huge sterling debt, not ensuring that the returns from capital investment were reinvested to develop the Indian economy rather than reimbursed to London; and retaining the levers of economic power in British hands.