The impact of British rule in India was significant and extensive, extending to several sectors of the economy, society, and culture. British policy caused the transformation of India's ancient economy, introduction of fresh land revenue structures, and plunder of resources in favor of the colonial government. The effects of British rule were short-term as well as long-term, leaving a lasting impression on India's political and economic system for centuries to come. Following are some of the major areas where British policies played an important role:

• Textile Industry and Trade: The massive import of machine-made clothes from England to India led to the decline of local textile production.

• British goods were sold at lower prices, severely threatening Indian handicrafts and local markets.
• India transitioned from being a leading exporter of fine textiles to an importer of British manufactured clothes, while exporting raw cotton.
• The collapse of the Indian handloom industry resulted in widespread unemployment and increased pressure on rural economies.

• Land Revenue Policy and Settlements: Under British Rule in India, the British increased land revenue to finance their administration and wars, often without considering the economic conditions of the cultivators.

• Various land revenue systems were introduced, including the Permanent Settlement in Bengal, the Mahalwari system in North-Western provinces, and the Ryotwari system in Madras and Bombay, causing hardship to many cultivators.
• These experiments often led to over-taxation and contributed to rural indebtedness and landlessness.

• Commercialization of Agriculture: During British Rule in India, the British introduced the cultivation of commercial crops such as cotton, jute, indigo, and tea, primarily to serve British industrial needs.

• British control over lucrative markets like opium and indigo limited profits for Indian producers, who faced exploitation.
• Tea plantations, managed by the British, brought severe hardships for workers, including poor working conditions and low wages.
• The commercialization of agriculture led to the increased transfer of land ownership to moneylenders and landlords, exacerbating rural exploitation and poverty.

• Drain of Wealth: Significant portions of India's wealth were drained to Britain through taxes, trade profits, and salaries, benefiting the British Empire and impoverishing India. This economic drain was highlighted by Dadabhai Naoroji's "Drain Theory."
• Rise of New Money-lending Class: The exploitation by moneylenders increased as peasants borrowed to pay high taxes, leading to widespread transfer of land ownership from cultivators to moneylenders.
• Rise of New Middle Class: British commercial interests created economic opportunities for a new elite class, including traders, administrators, and professionals.

• A new landed aristocracy and urban middle class emerged, often collaborating with the British.
• The spread of British power and the establishment of modern education systems created job opportunities in administration and services.

• Transport and Communication: The British built an extensive railway network, initially to facilitate trade and troop movements.

• Railways primarily benefited British capitalists and facilitated the export of raw materials and import of British goods.
• Over time, railways contributed to national awakening, unifying different regions and aiding the freedom struggle by improving communication.

• Deindustrialization of traditional industries: Traditional industries, such as textile and handicrafts, suffered due to competition from British goods, leading to deindustrialization.

• The British introduced a few modern industries, such as jute mills in Bengal and cotton mills in Bombay, which were controlled by British capitalists and served their interests. 
• and introduction of a few modern industries controlled by them.

• Impact of Modern Ideas: Under British Rule in India, India adopted ideas of liberty, equality, human rights, science, and technology from the West, leading to social and cultural changes.

• Modernization accelerated through improved transport, communication, and education systems, laying the groundwork for future developments.