15 December 2018

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Does Britain really stole $45 trillion from India

Does Britain really stole  $45 trillion from India
Today I read an article which said that Britain stole $45 trillion from India

Link to article How Britain stole $45 trillion from India

New research by the renowned economist Utsa Patnaik – just published by Columbia University Press. In article Utsa Patnaik says that Britain stole  $45 trillion from India

Following are the main parts of article -

1-Utsa Patnaik  calculated that Britain drained a total of nearly $45 trillion from India during the period 1765 to 1938

2-The East India Company began collecting taxes in India, and then cleverly used a portion of those revenues (about a third) to fund the purchase of Indian goods for British use

3-It was a scam – theft on a grand scale

4-Some of the stolen goods were consumed in Britain, and the rest were re-exported elsewhere

5-the British were able to sell the stolen goods to other countries for much more than they "bought" them

6-the British Raj took over in 1847

7-Indian producers were allowed to export their goods directly to other countries. But Britain made sure that the payments for those goods nonetheless ended up in London.

How did this work? Basically, anyone who wanted to buy goods from India would do so using special Council Bills – a unique paper currency issued only by the British Crown. And the only way to get those bills was to buy them from London with gold or silver. So traders would pay London in gold to get the bills, and then use the bills to pay Indian producers. When Indians cashed the bills in at the local colonial office, they were "paid" in rupees out of tax revenues – money that had just been collected from them. So, once again, they were not in fact paid at all; they were defrauded.

8-India had no option but to borrow from Britain to finance its imports

9-Britain used this  funding the invasion of China in the 1840s and the suppression of the Indian Rebellion in 1857.

10-Patnaik identifies four distinct economic periods in colonial India from 1765 to 1938, calculates the extraction for each, and then compounds at a modest rate of interest (about 5 percent, which is lower than the market rate) from the middle of each period to the present. Adding it all up, she finds that the total drain amounts to $44.6 trillion.

Now Let us face the bitter truth the Reality views about British Raj

No Britain does not stole  $45 trillion from India.

1- Who was the Prime Minister of India in year 1765?

2- Who was the Prime Minister of India in year 1847

3- Who was the Prime Minister of India in year 1938

4- Year 1857 Whom British Government defeated, Indian Arm Forces or few kings from India

When East India company came to Asia which includes India and Pakistan, that time no country was there on a map named or called as India or Pakistan.
Many Kings ruled in India and Pakistan.

There were Muslim, Arab kings as well as Hindu, Sikh kings ruled in different territories of India and Pakistan. All those kings fought with each other to expand their kingdom.
Even if one king defeated the other king the loyalties of residents of defeated kingdom remained with the defeated king, they tried to take back their kingdom whenever they got the chance.

1765 – East India company visited Asia for business.

The educated and smart East India company officers saw how the kings were fighting with each other and when they got the opportunity they took their chance and started to defeat one kingdom, then next kingdom, with this slowly and intelligently East India company took the full charge of India.

1847 – British Kingdom came to know about how East India company is making money and how they are becoming rich. After that as an Intelligent Kingdom they took the charge of East India company  ruled all small or big kingdoms.

Again Question – Who was the Prime Minister of India or King of India in year 1847

Did British Kingdom took charge of India or small or big kingdoms. On Majority part majority times Mughals, Muslims ruled India.
For a small period of time Maratha also ruled majority part.

But East India Company, Britishers Defeated Mughals, Maratha's and all kingdoms and then started a process of unifying India.

I will say that it started with codification Indian laws.

Now let us talk about taxes and East India Company, British Raj

Today India is an independent nation. Government of India collects the taxes from 100% Indian citizens. Whenever any Indian buys a cup of tea from any shop indirectly he pays tax to government of India.

When farmers suffer loss same money is paid by the government of India to farmers.

NPS – Few Rich people take the loans from Banks and without paying money they run away from India. After that to support banks government pays tax payers money to same banks.

Whenever Indian government buys farm products or anything from Indian residents, Indian government uses the tax payers money to buy that products.

When Indian government imports anything it pays from Tax Payers money.

Utsa Patnaik talks about how East India Company robbed India.

Correct approach is that How East India company and later British Kingdom robbed the small Kings or big kings who were ruling in Asia.

Now can we say the word Robbed?

No we can not say or use word Robbed.

Before East India Company came, the kings also collected taxes from people.

Mughals also collected taxes, Maratha or Sikh kingdoms also collected taxes. As they required money to enjoy life and maintain army and peace in their kingdom.
Same was done East India Company, Company needed to pay to its officers, arm forces  which they maintained.

As East India Company ruled and controlled small or big kingdoms of India and Pakistan  they got right to collect taxes.

Go to any nation and you will find that ruling government uses the tax payers money for entertainment, advertisement, to pay salaries and for foreign trips.
You can not say that governemnt is spending mony on entertainment or advertisement then that governemnt is robbying the citizens.

Nothing is wrong when same was done by the East India company or British Raj, collect the taxes and use the same taxes for paying.

Now – Question is why Indian People join British Army.

In reality that time those were the residents who were unhappy with their kings they joined the army of East India company or British King.

Majority were very happy to serve East India Company or British King. As British king paid them salary time to time and other reason was good treatment given to lower caste residents.
which they did not get from their kings.

East India Company and British Kingdom defeated all those small and big kingdoms. They were not independent.
Many kings enjoyed the life under British Raj, under the protection of British Kingdom.

The Biggest Mistakes British Kingdom made and that became the biggest gift for the residents of kingdoms

What was the mistake?

1-Teaching English Language to Indians.

2- Codification of laws

3-Allowing Rich Indians  to study in UK or USA Allowed Rich Indians to travel abroad see the development in USA and UK and their democracy.

Because of this the residents  realize that they also need their own nation and desire for Independent nation  started to grew and finally India got independence.

When British Raj ruled India they did black deeds as well as good deeds.

This happens everywhere. Every Government does this good and bad things.

British were outsiders, they were not in Asia to do charity work.

British came, they saw, they found opportunity, made money, took control of Kingdoms  and transferred that money to UK.
While doing this British Raj gave few  good things to Indians.

Just for name sake I am mentioning few good things.

1- Most Important is Knowledge of Democracy, When We got Independence  Indian Leaders  choose Secular Democracy for India.

2- Indian Railways

3- Codified Laws

4- Indian Arm Forces, Training Colleges for Army Officers.

5-State Bank of India

No British Raj Did not robbed or  stole $45 trillion from India.

What is a robbery?
When some one forcefully takes your money by telling you that he will murder you.
That is illegal activity.
When Government collects taxes it is a legal act and if for collection of that tax if government gives you punishment that is also a legal act.
One can not compare government with a robber. Need to understand this.

Need to understand that when East India company came to Asia there was no India , there were many kingdoms ruled by different kings in India, Pakistan, Bangladesh and other parts.

Its a very sweet and foolish thought that a king who wins a war he will behave like a good God.

This only happens in stories. Here we are talking about 16th 17th and 18th century and a period before that.

Updated on December 24, 2018
In short History -
Before East India Company Not a Single Indian King controlled all Asian subcontinent.
All Asian Kings collected taxes as they wanted and pleased
Asian Kings – Hindu Kings, Muslim Kings, Sikh Kings, Rajput Kings and many more

King Ashoka and King Aurangzeb both controlled majority Asian subcontinent but they were at war all the time. Only for Brief period they controlled and they were fighting with other kings all the time.

East India Company started to defeat Indian Asian kingdoms one by one and later British Raj defeated all Asian Indian Kingdoms and took full control of all kingdoms

After this British Raj first time started process of one law for everyone. British Raj started Codification of laws. British Raj started process of one currency for everyone

British Raj was a legal Raj. British King was not the Robber. British arm forces defeated everyone and everyone accepted defeat.

Tax collection is the duty and right of every king. Thus British King collected taxes. What we can say is that British King collected more taxes but you can not call them robbers.

Many People in India thought 28% GST tax is more as no where in world there is 28% GST tax.

Listen to Post Does Britain really stole  $45 trillion from India

Reality views by sm -

Saturday, December 15, 2018

Tags – India History British Rule  stole $45 trillion India


Unknown December 16, 2018  

Very poor and shallow analysis without going to any details or doing any research.Faulty logic for justifying like
1- England took taxes because they ruled India!!!
One one hand author says that Britishers/East India Coy came for business and on the other he says because of their"Intelligence" they took control of the kingdom.Sorry but it is called "exploitation" and not intelligence.
2- Any tax the Indian Kings collected did not go to Britishers but was used inside the Kingdom so this logic is also not justified.
3 The point that Britishers allowed wealthy indians to study in England is laughable at best.Does he mean to say that this was allowed only because british ruled India and not because they got money for the Edn and Indians were not allowed in England before British rule!!!

In the end I would suggest the Author to gain indepth knowledge before writing anything publicly.

SM December 16, 2018  

@Aakash Thakur
Thanks for comment Below is answer to your comment

Very poor and shallow analysis without going to any details or doing any research. Faulty logic for justifying like

Part 1 -

1- England took taxes because they ruled India

Answer – If England Does not ruled the India who ruled India, Pakistan and other part of India. Majority Kings surrendered Before British Raj.

Part 2 -

One one hand author says that Britishers/East India Coy came for business and on the other he says because of their"Intelligence" they took control of the kingdom. Sorry but it is called "exploitation" and not intelligence.

Answer – Read the History of East India company they came to India for business not war.
But when they saw the opportunity they utilized that opportunity.
One needs Intelligence to win the war, Britishers got that Intelligence they utilized that and defeated Kings.

In ancient India when one defeated other king, his daughters married that king.
As per history after the war, looting, rapes everything was common this is the reason now there are rules regarding wars and treatment given to people after war.

From ancient times winner has exploited the looser in war.

Do you know king who won a war who was not intelligent.

Learn the meaning of Exploitation?

Exploitation means the illegal or improper use of an incapacitated or dependent adult or his/her resources for another's profit or advantage.

East India Company and then British Raj controlled Ruled India that is reason they got right to collect tax.

Before arrival of East India company, Asian Indian Kings also exploited others Rich people Zamindars exploited poor people Upper caste people exploited the lower caste Indian citizens or poor people.

2- Any tax the Indian Kings collected did not go to Britishers but was used inside the Kingdom so this logic is also not justified.

Answer – Your reply it self is confusing.

Every person is free to spend how he wants to spend his money it is common logic.

Indian kings when collected taxes they spent their money for their pleasure or pursue their hobbies or on arm forces it was the will of king.

Same way East India Company made money and they sent their profits to England.

Same way British Government made money and it went to Britain.

British ruled the India and they were free to do what they wanted to do with that money.

3 The point that Britishers allowed wealthy Indians to study in England is laughable at best. Does he mean to say that this was allowed only because British ruled India and not because they got money for the Edn and Indians were not allowed in England before British rule!!!

Answer –
When Rich Indian people went to study in UK who gave them admission?
On whose Boat Rich Indians traveled to UK.
It was in the hands of British officers to decide to allow whom to travel abroad.

Do you think When Indians went to study abroad they got free education there.
They paid money , they paid the fees.

In the end I would suggest the Author to gain in depth knowledge before writing anything publicly

Today in Independent India also children get exploited

Today in Independent India farmers get exploited they commit suicide.

Today in Independent India Poor females get exploited.

My dear friend your knowledge regarding history is very little. You need to read lots and lots.
please read the history of Asia Try and Understand the concept of one nation.

I can write many more pages while explaining and answering you.

But this is enough.

Thanks for comment.

Sunil Nagar December 18, 2018  

SM, Are you real ? Did you even read the article properly? it's not taxes, but extortionate taxes which broke India's back. The article clearly says Nawab of Bengal levied 12% taxes before 1765 which British trebled. Also, nobody stole from entity called India but all people of Indian subcontinent were extorted. Please get your facts right before trashing a well-written article.

SM December 19, 2018  

@Sunil Nagar
Thanks i read the article.
i already on top gave the important parts of tax and robbery.
Many people in India thought that 28% GST was like extortionate
Before British also Indian subcontinet people paid extortionate taxes and interest and even majority farmers were landless.