Answer the following briefly

State the three phases in the colonization of Indian economy.

The three phases in the colonization of Indian economy were-

Phase 1- Mercantilist Capitalism

Phase 2- Industrial Capitalism

Phase 3- Financial Capitalism

Phase 1- It was the Mercantilist Capitalism which means the British only had the sole aim of having monopoly trade with India. They wanted to have a prosperous trade with India without any competition from the other European countries.

Phase 2- in this phase India was transformed as a market for the British textiles. They fought wars with the regional rulers over the expansion of their regions. The British exploited India in this phase in order to earn maximum profits for themselves.

Phase 3- in this phase the company government decided to invest in the railway and communication system so they can connect the distant regions of India and can easily attain the resources easily. It also helped them in establishing themselves in the Indian markets.