Explain the following statements with reasons.

The British imposed heavy taxes on Indian industries.

The most important reason for the British imposing heavy taxes on Indian industries was:

• The industries in India had their leading position in the World market. At the same time, British industries were lagging at the back.

• To advance the position of British goods in the market, they forced heavy taxes on Indian industries.

• Heavy duties were imposed on the import of plain cloth. Other actions like the prohibition of the import of Indian cloth or imposing heavy import duties were also done.

• To put up with these expenses, industries had to raise the prices of the goods, where Britain goods were cheaper.

• As a result, Indian goods were misplaced from their lead in the market, and British industries started to flourish.

Later the pattern of the Company’s commercial relations with India underwent a qualitative change. The Indian market and workers suffered, but the British gained out of it.