Under the colonial rule, India was basically an agrarian economy with nearly 85% of its population employed in agriculture sector. ... Under this system, the zamindars (owners of land) got the profit from land cultivation who collected rent from the cultivators regardless of the economic condition of the cultivators.

The State of Agricultural Sector During the Colonial Period
During the colonial period, the agricultural sector in India underwent significant changes due to the policies and practices implemented by the British colonial rulers. Some key points to consider are:

Land Revenue System:
The British introduced the Permanent Settlement System in 1793, followed by the Ryotwari and Mahalwari systems. These systems focused on maximizing revenue collection, leading to increased taxes and land rents, which burdened the farmers.

Commercialization of Agriculture:
Under British rule, there was a shift towards cash crop cultivation like indigo, cotton, and jute for export purposes. This led to a decline in food grain production, causing famines and food shortages in certain regions.

Introduction of Modern Technology:
The British introduced modern agricultural techniques, machinery, and irrigation systems, which improved productivity in some areas. However, these benefits were often limited to large landowners and did not reach small-scale farmers.

Impact on Rural Economy:
The colonial policies disrupted the traditional agrarian economy, leading to the concentration of land ownership in the hands of a few landlords. This resulted in the exploitation of tenant farmers and agricultural laborers.

Economic Impacts of Colonial Rule in India
The economic impacts of colonial rule in India were profound and far-reaching. Some key points to consider are:

Drain of Wealth:
The British extraction of resources from India, coupled with the imposition of heavy taxes, led to a significant drain of wealth from the country. This hampered economic development and perpetuated poverty.

Deindustrialization:
The British policies favored the growth of industries in Britain at the expense of Indian industries. This led to the decline of traditional handicrafts and artisanal production, causing widespread unemployment and economic stagnation.

Infrastructure Development:
While the British invested in infrastructure like railways, roads, and ports, these developments primarily served the interests of the colonial administration and facilitated resource extraction rather than benefiting the local population.

Creation of Dual Economy:
The colonial economy was characterized by a dual structure, with a modern industrial sector catering to British interests alongside a traditional agricultural sector that struggled under exploitative land revenue systems.
Overall, the colonial period had a detrimental impact on the Indian economy, leaving a legacy of economic inequality and underdevelopment that continues to be felt to this day.