India, once known as the "golden sparrow" for its prosperity and abundance of raw materials, has suffered over a century of exploitation of its wealth and resources due to repeated invasions by Islamist rulers and imperial powers. A recent report by Oxfam International has shed further light on this historical reality, offering a detailed account of how the British colonial empire systematically drained India's resources to serve its own economic interests, enriching the affluent elite in Britain at the expense of the Indian populace.
The report, titled Takers, Not Makers: The Unjust Poverty and Unearned Wealth of Colonialism, was released on January 19 and unveiled staggering figures regarding Britain’s appropriation of India’s wealth between 1765 and 1900—amounting to $64.82 trillion. Adjusted for present-day values, the findings reveal that the top 10% of earners in the United Kingdom benefited from $33.8 trillion, over 50% of the total wealth looted. Presented at the annual World Economic Forum in Davos, Switzerland, the report underscores the enduring impact of colonialism on global economic inequality.
The data vividly highlights how Britain's elite amassed immense wealth through systemic exploitation, while India was burdened with excessive taxation, devastating famines, prolonged droughts, and countless other hardships. The colonial policies enriched Britain’s privileged class while leaving India’s rightful owners to endure extreme poverty, suffering, and deprivation.
The report pointed out, “Legacies of inequality and pathologies of plunder, pioneered during the time of historical colonialism, continue to shape modern lives.” This statement is exemplified by India and other nations that faced the aftermath of colonialism. After gaining independence, India was left to rebuild on its own, struggling to recover from the profound impacts of British exploitation. The economy was weighed down by the massive loss of wealth, and the hardships endured by the population during that period left lasting effects on their lives and those of future generations, while the British prospered and bolstered their financial system.
“This has created a deeply unequal world, a world torn apart by division based on racism, a world that continues to systematically extract wealth from the Global South to primarily benefit the richest people in the Global North,” the report highlighted that colonial practices continued to benefit a small elite by funneling wealth from the Global South to the Global North. Notably, during its 2023 G20 presidency, India remained dedicated to its mission of advocating for the Global South and addressing critical issues often overlooked or unsupported by the West.
The fact that “The Voice of the Global South Summit,” a distinctive initiative introduced by the Indian government just months after assuming the G20 presidency in 2023 highlights its genuine commitment to supporting developing and underdeveloped nations that have faced the lasting impacts of colonialism in various forms.
Britain's Exploitation of India and Other Global South Nations
According to multiple studies and research papers, Oxfam estimated that between 1765 and 1900, over a span of just 100 years, the wealthiest 10% of the UK’s population extracted $33.8 trillion (in today's value) from India alone and stated, “This would be enough to carpet the surface area of London in British pound 50 notes almost four times over.” The wealthiest 10% reaped the most, securing nearly 52% of the proceeds from the robbery, while Britain's middle class, which accounted for 32% of this income, also gained significantly.
In 1750, the Indian subcontinent accounted for 25% of global industrial production. However, due to British protectionist policies aimed at Asian textiles, this share plummeted to just 2% by 1900. “This dramatic reduction can be attributed to Britain’s implementation of stringent protectionist policies against Asian textiles, which systematically undermined India’s industrial growth potential,” the report stated. Interestingly, this industrial oppression was briefly alleviated by a worldwide conflict. “During World War One (1914–18), the disruption of colonial trade patterns inadvertently catalysed industrial growth in the colonies,” it highlighted how an external shock temporarily alleviated British oppression.
During the war, regions that experienced significant reductions in British imports saw stronger industrial employment growth, a trend that persists today. Oxfam emphasized that private multinational corporations, often granted monopolies and reaping substantial profits from global expansion, were commonly responsible for colonialism. The colonial era fostered the rise of private multinational corporations, supported by wealthy shareholders, many of which used their own forces to harshly suppress uprisings.
With 260,000 soldiers, the East India Company's military in India was twice the size of the British army during peacetime. The report mentioned, “They engaged in land dispossession, violence, and mergers and acquisitions, driving globalization and contributing to the creation of the world’s first global financial system. Financial markets, especially in London, facilitated these colonial behemoths.”
The study also revealed that by 1940, the primary earners in India consisted mainly of traders, bankers, and industrialists, in contrast to 1875, when the majority were European officials in military and governmental positions. Another notable characteristic of the colonial era was the extensive use of human labor, with new forms of servitude emerging after the abolition of slavery. The research highlighted that between 1830 and 1920, 3.7 million indentured laborers were brought to India from regions such as China, Africa, Japan, Melanesia, and beyond to work on infrastructure projects, mines, and plantations.
Continued Oppression and Criminal Neglect in India
The data reveals that between 1891 and 1920, British rule in India resulted in an additional 59 million deaths. The report also pointed to the catastrophic Bengal famine of 1943, which led to an estimated three million fatalities. It further noted, “Grain import restrictions during World War Two, underpinned by racist thinking, appear to have significantly contributed to or caused the Bengal famine.” Winston Churchill, the former British Prime Minister who referred to Indians as "beastly people with a beastly religion," notably stated, “The starvation of anyhow underfed Bengalis is less serious than that of sturdy Greek,” it clearly reflected their agenda and their inhumane sentiments towards India and its people.
The caste, religious, gender, and linguistic divisions deeply embedded in society during colonial rule were the result of British policies designed to serve their own interests. By exploiting these faultlines, they reinforced their control over the country, and the lasting consequences of these policies are still evident today. These differences were not only heightened but were institutionalized and made permanent.
The report highlighted that, for example, only 0.14% of India's native languages are used as mediums of instruction, and just 0.35% are taught in schools. It described these ongoing colonial impacts as "fruit from the poisoned tree." Additionally, it emphasized how the caste system became entrenched during the colonial period through administrative and legal actions that reinforced its rigid structures.
Oxfam pointed out that the East India Company acted as a law unto itself, committing numerous colonial injustices. It also played a key role in shaping the modern multinational corporation, a legacy of colonialism. “In the modern day, multinational corporations, often occupying monopoly or near-monopoly positions, continue to exploit workers in the Global South, particularly women workers, on behalf of rich shareholders primarily based in the Global North.”
During the East India Company’s rule, military spending accounted for more than 75% of India’s total expenditures, while public works projects received only an average of 3%. This stark contrast underscored the crucial role of military force in maintaining colonial inequalities. The research also noted that the aggressive tactics used by colonizers have endured into the present, largely due to the failure of authorities to address irrigation infrastructure issues, which contributed to diminished agricultural productivity and intensified droughts and famines across many countries in the Global South.
Additionally, the report pointed out that many of today’s wealthiest individuals in the United Kingdom can trace their family fortunes back to colonialism and slavery, particularly through the compensation granted to influential enslavers following the abolition of slavery.
Colonial Drug Dealer
Oxfam has referred to the British government as a “colonial drug pusher.” Both the Dutch and British East India Companies exploited the opium trade to strengthen their colonial dominance, leaving a legacy of corporate greed that still influences the ongoing opioid crisis, as noted in the study. Consequently, commercial opium cultivation was promoted in eastern India, where the British East India Company held a monopoly from 1757, which was later transferred to the crown in 1873.
The opium was shipped to China, eventually sparking the Opium War and leading to China’s notorious “century of humiliation.” By the mid-nineteenth century, opium represented nearly half of China’s imports and became the third-largest revenue source for the British Raj, following land and salt taxes. Oxfam highlights that poppy-growing regions in India were associated with lower government spending on administration, health, and education, as well as a larger police presence. These regions, even today, continue to exhibit significantly lower literacy rates and access to public services compared to their neighbors.
Repercussions for India and the Global South
The British, who were also responsible for the violent partition of India, not only drained the country's wealth but also its health. Their actions had a lasting negative impact on the well-being of future generations in India. According to the report, the physiological changes resulting from repeated cycles of hunger during colonial rule may have contributed to the higher rates of obesity and type 2 diabetes within this population.
The report also noted that in many post-independence countries across the Global South, wealth and political power remained concentrated in the hands of the wealthiest individuals. Extreme poverty and significant wealth were often separated by barriers such as golf courses, electric fences, and other physical divisions. “The inequality that these countries experience today is significant of colonial making,” Oxfam explained the reason behind it, shedding light on the matter.
The current systems of colonial wealth extraction from the Global South to the Global North are exemplified by global supply chains and export processing companies. Research highlights that workers in these supply chains often endure poor working conditions, lack social protection, and have no rights to collective bargaining. It also emphasizes the stark disparity in wages, revealing that salaries in the Global South are between 87% and 95% lower than those in the Global North for equivalent labor.
By leveraging cheap labor and ongoing resource extraction from the Global South, large multinational corporations dominate global supply chains, retaining the majority of profits while using economic mechanisms to perpetuate power, exploitation, and dependency, as noted by Oxfam. Simultaneously, these companies exploit natural resources to generate maximum profits. Oxfam has also criticized international institutions like the World Bank and the World Trade Organization (WTO) for perpetuating these injustices. According to Oxfam, the massive exploitation of fossil fuels, a legacy of colonialism, continues today, pushing the world closer to the brink of a climate crisis.
Colonialism: A Continuum Without True End
Colonialism, often viewed as a mindset rather than a fleeting condition, continues to persist because the dominant Global North remains involved in shaping the policies of the Global South. They regard these nations not as equals but as former colonies, as evidenced time and again.
The research also pointed out that “biopiracy” — the unauthorized and uncompensated collection of genetic material for commercial gain — has impacted Global South nations. A case in point was the 1994 patent granted to the U.S. multinational company WR Grace for a neem tree seed extract used in their antifungal spray, Neemex. Despite the company's claim that the patent was based on a novel invention, neem extracts had been used for over 2,000 years by Indian farmers in insect repellents, soaps, and contraceptives. After a decade of legal battles, the European Patent Office's technical board of appeals revoked the patent.
While all nations have formal equality in various international organizations, Oxfam has argued that the Global North still holds a disproportionate influence. The organization noted that the World Trade Organization (WTO) has historically neglected the interests of the Global South, to the benefit of both northern countries and corporations based in the Global North. This was evident during the COVID-19 pandemic when, despite support from over 100 countries for a proposal by South Africa and India at the WTO to waive intellectual property restrictions on life-saving vaccines, treatments, and other technologies, wealthy nations successfully opposed it.
Furthermore, the report highlighted that institutions like the World Bank and several European development finance organizations are pushing for the financialization and privatization of public services in the Global South. They do so by collaborating with private capital and investment funds from the Global North. A recent example of this occurred at the United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, last year.
At this summit, rich nations managed to impose a deal that ignored the demands of developing countries for at least $1.3 trillion annually in climate financing, instead promising just $300 billion per year, starting in 2035. India, representing the Global South, voiced its discontent, calling the adoption process “unfair” and “stage-managed,” and emphasizing the resulting lack of trust in the UN system.
“India does not accept the goal proposal in its present form. The amount that is proposed to be mobilised is abysmally poor. It is a paltry sum. It is not something that will enable conducive climate action that is necessary for the survival of our country,” stated Chandni Raina, Adviser, Department of Economic Affairs and part of India’s negotiating team. She also described the initiative as "insufficient and too far off," adding, "Estimates suggest we will need at least USD 1.3 trillion annually by 2030."
“In continuation of several such incidents of not following inclusivity, not respecting country positions. We had informed the Presidency (host country Azerbaijan), and we had informed the Secretariat (of UN Climate Change) that we wanted to make a statement before any decision on the adoption. However, and this is for everyone to see, this has been stage-managed and we are extremely, extremely disappointed with this incident. We object to this unfair means followed for adoption,” She remarked, subtly suggesting that the concerns of the Global South are often overlooked in forums that align with the interests of the powerful West.
False Claims of UK Aid to India
The phrases “It’s time to stop sending aid to India,” “Give us our aid back,” and “We are giving them money” have frequently been hurled at Indians on social media by ignorant British users, especially to vent their frustration and resentment whenever India achieves success, whether in space or other fields. These sentiments resurfaced after the Indian Space Research Organisation (ISRO) successfully docked two satellites in space as part of the Space Docking Experiment (SpaDeX).
One user spread the false narrative about the United Kingdom’s significant economic support for India, attempting to undermine such an incredible achievement as if the British should have been the ones recognized.
Another expressed their anger with an emoji, showing their irritation over the supposed financial assistance to India.
A disgruntled netizen even questioned whether the UK should stop sending financial aid to India altogether.
While the British colonial era extracted trillions from India, the current generation of Britons is spreading misleading claims about fictitious financial aid. Former Indian Finance Minister Pranab Mukherjee famously called Britain’s £280 million (Rs 2,798 crore) annual aid to India “peanuts” in 2012. Many British lawmakers voiced their displeasure and questioned whether this so-called “aid” should continue, arguing that India no longer needed foreign assistance, as it has its own budget for foreign aid and funds its own space program.
The Indian government made it clear that it had little interest in the help, leading to plans to end the aid in 2015. However, in 2017, India reminded political commentators and analysts with colonial mindsets that the country has been providing more foreign aid than it has been receiving. According to a report by the Independent Commission for Aid Impact (ICAI) in March 2023, the UK continues to provide assistance to India, but the nature and purpose of this aid have since evolved.
The ICAI operates independently of the government and evaluates UK government aid. Research indicates that India received nearly £2.3 billion (Rs 23,000 crore) in assistance from the UK between 2016 and 2021. However, the report highlights a crucial point: “We calculated that the UK provided around £2.3 billion in aid to India between 2016 and 2021. This figure includes £441 million in bilateral aid, £129 million in development investment via the Foreign, Commonwealth and Development Office (FCDO), £749 million of aid through multilateral organizations, and £1 billion in investments through British International Investment (BII), the UK’s development finance institution.”
The ICAI study revealed that British funds were directed towards various Indian programs, including investments, rather than being allocated to the Indian government. “While there are still substantial volumes of UK aid to India, it is now very different in nature and purpose,” it further clarified, exposing the false information.
This is not the first time that the British exploitation of India has been highlighted. The issue has been addressed in numerous studies and voiced by several prominent Indian figures. “India had two centuries of humiliation by the West in its predatory form when it came to India in the mid-18th century. An economic study tried to estimate how much British took out of India, and it ended up at $45 trillion in today’s value,” Dr. S. Jaishankar, the External Affairs Minister, remarked in a speech at the renowned think tank Atlantic Council in Washington, DC, in 2019.
Shashi Tharoor further expanded on this subject in his well-known 2015 speech at Oxford University. The Oxfam report simply reinforces what is already well-known: the British economy has long been upheld by wealth extracted from India and other nations in the Global South, much like the country's museums, which house artifacts from these former colonies.
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