Measuring Colonial Extraction: The East India Company’s Rule and the Drain of Wealth (1757–1858)

This paper revisits the relationship between capitalism and colonialism by examining case of British India under East Company rule (1757–1858). The Marxist-nationalist historiography claims that generated a steady drain wealth this was responsible for Indian famines, poverty, inequality, economic retardation. I use budgets to measure extent drained through three direct channels: oppressive land taxes, unproductive expenditures on imperial army civil administration, unrequited export commodities from Britain. conclude available figures lend empirical support Marxist interpretation. There its effects underdevelopment former European colonies deserve further research.