British Raj

The British Raj extended over almost all present-day India, Pakistan, Bangladesh and Myanmar, except for small holdings by other European nations such as Goa (Portugal) and Pondicherry (France). This area is very diverse, containing the Himalayan mountains, fertile floodplains, the Indo-Gangetic Plain, a long coastline, tropical dry forests, arid uplands, and the Thar Desert. In addition, at various times, it included Aden (from 1858 to 1937), Lower Burma (from 1858 to 1937), Upper Burma (from 1886 to 1937), British Somaliland (briefly from 1884 to 1898), and the Straits Settlements (briefly from 1858 to 1867). Burma was separated from India and directly administered by the British Crown from 1937 until its independence in 1948. To the west, from the early 20th century, the Trucial States of the Persian Gulf showed signs of more close-knit association with the government of the British Raj, which was analogous to that of the princely states.

Among other countries in the region, Ceylon (now Sri Lanka), which referred to the coastal regions and northern part of the island at that time, was ceded to Britain in 1802 under the Treaty of Amiens. These coastal regions were temporarily administered under Madras Presidency between 1793 and 1798, but, for later periods, the British governors reported to London, and it was not part of the Raj. The kingdoms of Nepal and Bhutan, having fought wars with the British, subsequently signed treaties with them and were recognised by the British as independent states. The Kingdom of Sikkim was established as a princely state after the Anglo-Sikkimese Treaty of 1861; however, the issue of sovereignty was left undefined. The Maldive Islands were a British protectorate from 1887 to 1965 but not part of British India.

Although the Indian Rebellion of 1857 had shaken the British enterprise in India, it had not derailed it. Until 1857, the British, especially under Lord Dalhousie, had been hurriedly building an India which they envisaged to be on par with Britain itself in the quality and strength of its economic and social institutions. After the rebellion, they became more circumspect. Much thought was devoted to the causes of the rebellion, and three main lessons were drawn. First, at a practical level, it was felt that there needed to be more communication and camaraderie between the British and Indians—not just between British army officers and their Indian staff but in civilian life as well. The Indian army was completely reorganised: units composed of the Muslims and Brahmins of the United Provinces of Agra and Oudh, who had formed the core of the rebellion, were disbanded. New regiments, like the Sikhs and Baluchis, composed of Indians who, in British estimation, had demonstrated steadfastness, were formed. From then on, the Indian army was to remain unchanged in its organisation until 1947. The 1861 Census had revealed that the English population in India was 125,945. Of these, only about 41,862 were civilians as compared with about 84,083 European officers and men of the Army. In 1880, the standing Indian Army consisted of 66,000 British soldiers, 130,000 Natives, and 350,000 soldiers in the princely armies.

Second, it was also felt that both the princes and the large land-holders, by not joining the rebellion, had proved to be, in Lord Canning's words, "breakwaters in a storm". They too were rewarded in the new British Raj by being integrated into the British-Indian political system and having their territories guaranteed. At the same time, it was felt that the peasants, for whose benefit the large land reforms of the United Provinces had been undertaken, had shown disloyalty by, in many cases, fighting for their former landlords against the British. Consequently, no more land reforms were implemented for the next 90 years: Bengal and Bihar were to remain the realms of large land holdings (unlike the Punjab and Uttar Pradesh).

Third, the British felt disenchanted with Indian reaction to social change. Until the rebellion, they had enthusiastically pushed through social reform, like the ban on sati by Lord William Bentinck. It was now felt that traditions and customs in India were too strong and too rigid to be changed easily; consequently, no more British social interventions were made, especially in matters dealing with religion, even when the British felt very strongly about the issue (as in the instance of the remarriage of Hindu child widows). This sentiment was exemplified further in Queen Victoria's Proclamation released immediately after the rebellion. The proclamation stated that "We disclaim alike our Right and Desire to impose Our Convictions on any of Our Subjects", demonstrating official British commitment to abstaining from social intervention in India.

In the second half of the 19th century, both the direct administration of India by the British crown and the technological change ushered in by the industrial revolution had the effect of closely intertwining the economies of India and Great Britain. In fact, many of the major changes in transport and communications (that are typically associated with the Crown Rule of India) had already begun before the Mutiny. Since Dalhousie had embraced the technological change then rampant in Great Britain, India too saw the rapid development of all those technologies. Railways, roads, canals, and bridges were rapidly built in India, and telegraph links were equally rapidly established so that raw materials, such as cotton, from India's hinterland, could be transported more efficiently to ports, such as Bombay, for subsequent export to England. Likewise, finished goods from England were transported back for sale in the burgeoning Indian markets. Unlike Britain, where the market risks for the infrastructure development were borne by private investors, in India, it was the taxpayers—primarily farmers and farm-labourers—who endured the risks, which, in the end, amounted to £50 million. Despite these costs, very little skilled employment was created for Indians. By 1920, with the fourth largest railway network in the world and a history of 60 years of its construction, only ten per cent of the "superior posts" in the Indian Railways were held by Indians.

The rush of technology was also changing the agricultural economy in India: by the last decade of the 19th century, a large fraction of some raw materials—not only cotton but also some food-grains—were being exported to faraway markets. Many small farmers, dependent on the whims of those markets, lost land, animals, and equipment to money-lenders. The latter half of the 19th century also saw an increase in the number of large-scale famines in India. Although famines were not new to the subcontinent, these were particularly severe, cumulatively causing deaths in the tens of millions. Many critics, both British and Indian, laid the blame at the doorsteps of the lumbering colonial administrations. There were also salutary effects: commercial cropping, especially in the newly canalled Punjab, led to increased food production for internal consumption. The railway network provided critical famine relief, notably reduced the cost of moving goods, and helped nascent Indian-owned industry. After the Great Famine of 1876–1878, the Indian Famine Commission report was issued in 1880, and the Indian Famine Codes, the earliest famine scales and programmes for famine prevention, were instituted. In one form or other, they would be implemented worldwide by the United Nations and the Food and Agricultural Organisation well into the 1970s.

By 1880, a new middle class had arisen in India and spread thinly across the country. Moreover, there was a growing solidarity among its members, created by the "joint stimuli of encouragement and irritation". The encouragement felt by this class came from its success in education and its ability to avail itself of the benefits of that education, such as employment in the Indian Civil Service. It came too from Queen Victoria's proclamation of 1858 in which she had declared, "We hold ourselves bound to the natives of our Indian territories by the same obligation of duty which binds us to all our other subjects." Indians were especially encouraged when Canada was granted dominion status in 1867 and established an autonomous democratic constitution. Lastly, the encouragement came from the work of contemporaneous Oriental scholars like Monier Monier-Williams and Max Müller, who in their works had been presenting ancient India as a great civilization. Irritation, on the other hand, came not just from incidents of racial discrimination at the hands of the British in India but also from governmental actions like the use of Indian troops in imperial campaigns (e.g., in the Second Anglo-Afghan War) and the attempts to control the vernacular press (e.g., in the Vernacular Press Act of 1878).

It was, however, Viceroy Lord Ripon's partial reversal of the Ilbert Bill (1883), a legislative measure that had proposed putting Indian judges in the Bengal Presidency on equal footing with British ones, that transformed the discontent into political action. On 28 December 1885, professionals and intellectuals from this middle-class—many educated at the new British-founded universities in Bombay, Calcutta, and Madras, and familiar with the ideas of British political philosophers, especially the utilitarians assembled in Bombay—founded the Indian National Congress. The 70 men elected Womesh Chunder Bonerjee as the first president. The membership consisted of a Westernized elite, and no effort was made at this time to broaden the base.During its first 20 years, the Congress primarily debated British policy toward India. Its debates created a new Indian outlook that held Great Britain responsible for draining India of its wealth. Britain did this, the nationalists claimed, by unfair trade, by the restraint on indigenous Indian industry, and by the use of Indian taxes to pay the high salaries of the British civil servants in India.

Thomas Baring served as Viceroy of India 1872–1876. Baring's major accomplishments came as an energetic reformer who was dedicated to upgrading the quality of government in the British Raj. He began large-scale famine relief, reduced taxes, and overcame bureaucratic obstacles in an effort to reduce both starvation and widespread social unrest. Although appointed by a Liberal government, his policies were much the same as those of viceroys appointed by Conservative governments. Social reform was in the air by the 1880s. For example, Pandita Ramabai, poet, Sanskrit scholar, and a champion of the emancipation of Indian women, took up the cause of widow remarriage, especially of Brahmin widows, later converted to Christianity. By 1900, reform movements had taken root within the Indian National Congress. Congress member Gopal Krishna Gokhale founded the Servants of India Society, which lobbied for legislative reform (e.g., for a law to permit the remarriage of Hindu child widows) and whose members took vows of poverty, and worked among the untouchable community.

By 1905, a deep gulf opened between the moderates, led by Gokhale, who downplayed public agitation, and the new "extremists" who not only advocated agitation but also regarded the pursuit of social reform as a distraction from nationalism. Prominent among the extremists was Bal Gangadhar Tilak, who attempted to mobilise Indians by appealing to an explicitly Hindu political identity, displayed, for example, in the annual public Ganapati festivals that he inaugurated in western India.

The overwhelming, but predominantly Hindu, protest against the partition of Bengal and the fear in its wake of reforms favouring the Hindu majority led the Muslim elite in India to meet with the new viceroy, Lord Minto in 1906 and to ask for separate electorates for Muslims. In conjunction, they demanded proportional legislative representation reflecting both their status as former rulers and their record of cooperating with the British. This led, in December 1906, to the founding of the All-India Muslim League in Dacca. Although Curzon, by now, had resigned his position over a dispute with his military chief Lord Kitchener and returned to England, the League was in favour of his partition plan. The Muslim elite's position, which was reflected in the League's position, had crystallized gradually over the previous three decades, beginning with the revelations of the Census of British India in 1871, which had for the first time estimated the populations in regions of the Muslim majority (for his part, Curzon's desire to court the Muslims of East Bengal had arisen from British anxieties ever since the 1871 census—and in light of the history of Muslims fighting them in the 1857 Mutiny and the Second Anglo-Afghan War—about Indian Muslims rebelling against the Crown). In the three decades since, Muslim leaders across northern India had intermittently experienced public animosity from some of the new Hindu political and social groups. The Arya Samaj, for example, had not only supported Cow Protection Societies in their agitation, but also—distraught at the 1871 Census's Muslim numbers—organized "reconversion" events for the purpose of welcoming Muslims back to the Hindu fold. In 1905, when Tilak and Lajpat Rai attempted to rise to leadership positions in the Congress, and the Congress itself rallied around the symbolism of Kali, Muslim fears increased. It was not lost on many Muslims, for example, that the rallying cry, "Bande Mataram", had first appeared in the novel Anand Math in which Hindus had battled their Muslim oppressors.

India during the British Raj was made up of two types of territory: British India and the Native States (or princely states). In its Interpretation Act 1889, the British Parliament adopted the following definitions in Section 18:

(4.) The expression "British India" shall mean all territories and places within Her Majesty's dominions which are for the time being governed by Her Majesty through the Governor-General of India or through any governor or other officer subordinate to the Governor-General of India.

(5.) The expression "India" shall mean British India together with any territories of any native prince or chief under the suzerainty of Her Majesty exercised through the Governor-General of India, or through any governor or other officer subordinate to the Governor-General of India.

In general, the term "British India" has been used (and is still used) to refer also to the regions under the rule of the British East India Company in India from 1600 to 1858. The term has also been used to refer to the "British in India". The terms "Indian Empire" and "Empire of India" (like the term "British Empire") were not used in legislation. The monarch was officially known as Empress or Emperor of India, and the term was often used in Queen Victoria's Queen's Speeches and Prorogation Speeches. In addition, an order of knighthood, the Most Eminent Order of the Indian Empire, was set up in 1878. Suzerainty over 175 princely states, some of the largest and most important, was exercised (in the name of the British Crown) by the central government of British India under the viceroy; the remaining approximately 500 states were dependents of the provincial governments of British India under a governor, lieutenant-governor, or chief commissioner (as the case might have been). A clear distinction between "dominion" and "suzerainty" was supplied by the jurisdiction of the courts of law: the law of British India rested upon the laws passed by the British Parliament and the legislative powers those laws vested in the various governments of British India, both central and local; in contrast, the courts of the Princely States existed under the authority of the respective rulers of those states.

At the turn of the 20th century, British India consisted of eight provinces that were administered either by a governor or a lieutenant-governor.

During the partition of Bengal (1905–1913), the new province of Eastern Bengal and Assam was created as a Lieutenant-Governorship. In 1911, East Bengal was reunited with Bengal, and the new provinces in the east became: Assam, Bengal, Bihar and Orissa.

In addition, there were a few minor provinces that were administered by a chief commissioner:

A princely State, also called a Native State or an Indian State, was a British vassal state in India with an indigenous nominal Indian ruler, subject to a subsidiary alliance. There were 565 princely states when India and Pakistan became independent from Britain in August 1947. The princely states did not form a part of British India (i.e. the presidencies and provinces), as they were not directly under British rule. The larger ones had treaties with Britain that specified which rights the princes had; in the smaller ones, the princes had few rights. Within the princely states, external affairs, defence, and most communications were under British control. The British also exercised a general influence over the states' internal politics, in part through the granting or withholding of recognition of individual rulers. Although there were nearly 600 princely states, the great majority were very small and contracted out the business of government to the British. Some two hundred of the states had an area of less than 25 square kilometres (10 square miles). The last vestige of the Mughal Empire in Delhi which was under Company authority before the advent of British Raj was finally abolished and seized by the Crown in the aftermath of the Sepoy Mutiny of 1857 for its support to the rebellion. The princely states were grouped into agencies and residencies.

Following the Indian Rebellion of 1857 (usually called the Indian Mutiny by the British), the Government of India Act 1858 made changes in the governance of India at three levels:

in the imperial government in London,

in the central government in Calcutta, and

in the provincial governments in the presidencies (and later in the provinces).

In London, it provided for a cabinet-level Secretary of State for India and a fifteen-member Council of India, whose members were required, as one prerequisite of membership, to have spent at least ten years in India and to have done so no more than ten years before. Although the Secretary of State formulated the policy instructions to be communicated to India, he was required in most instances to consult the Council, but especially so in matters relating to the spending of Indian revenues. The Act envisaged a system of "double government" in which the Council ideally served both as a check on excesses in imperial policy-making and as a body of up-to-date expertise on India. However, the Secretary of State also had special emergency powers that allowed him to make unilateral decisions, and, in reality, the Council's expertise was sometimes outdated. From 1858 until 1947, twenty-seven individuals served as Secretary of State for India and directed the India Office; these included: Sir Charles Wood (1859–1866), the Marquess of Salisbury (1874–1878; later British prime minister), John Morley (1905–1910; initiator of the Minto–Morley Reforms), E. S. Montagu (1917–1922; an architect of the Montagu–Chelmsford Reforms), and Frederick Pethick-Lawrence (1945–1947; head of the 1946 Cabinet Mission to India). The size of the Advisory Council was reduced over the next half-century, but its powers remained unchanged. In 1907, for the first time, two Indians were appointed to the Council. They were K.G. Gupta and Syed Hussain Bilgrami.

In Calcutta, the governor-general remained head of the Government of India and now was more commonly called the viceroy on account of his secondary role as the Crown's representative to the nominally sovereign princely states; he was, however, now responsible to the Secretary of State in London and through him to Parliament. A system of "double government" had already been in place during the Company's rule in India from the time of Pitt's India Act of 1784. The governor-general in the capital, Calcutta, and the governor in a subordinate presidency (Madras or Bombay) were each required to consult his advisory council; executive orders in Calcutta, for example, were issued in the name of "Governor-General-in-Council" (i.e. the Governor-General with the advice of the Council). The Company's system of "double government" had its critics, since, from the time of the system's inception, there had been intermittent feuding between the governor-general and his Council; still, the Act of 1858 made no major changes in governance. However, in the years immediately thereafter, which were also the years of post-rebellion reconstruction, Viceroy Lord Canning found the collective decision making of the Council to be too time-consuming for the pressing tasks ahead, so he requested the "portfolio system" of an Executive Council in which the business of each government department (the "portfolio") was assigned to and became the responsibility of a single council member. Routine departmental decisions were made exclusively by the member, but important decisions required the consent of the governor-general and, in the absence of such consent, required discussion by the entire Executive Council. This innovation in Indian governance was promulgated in the Indian Councils Act 1861.

If the Government of India needed to enact new laws, the Councils Act allowed for a Legislative Council—an expansion of the Executive Council by up to twelve additional members, each appointed to a two-year term—with half the members consisting of British officials of the government (termed official) and allowed to vote, and the other half, comprising Indians and domiciled Britons in India (termed non-official) and serving only in an advisory capacity. All laws enacted by Legislative Councils in India, whether by the Imperial Legislative Council in Calcutta or by the provincial ones in Madras and Bombay, required the final assent of the secretary of state in London; this prompted Sir Charles Wood, the second secretary of state, to describe the Government of India as "a despotism controlled from home". Moreover, although the appointment of Indians to the Legislative Council was a response to calls after the 1857 rebellion, most notably by Sayyid Ahmad Khan, for more consultation with Indians, the Indians so appointed were from the landed aristocracy, often chosen for their loyalty, and far from representative. Even so, the "... tiny advances in the practice of representative government were intended to provide safety valves for the expression of public opinion, which had been so badly misjudged before the rebellion". Indian affairs now also came to be more closely examined in the British Parliament and more widely discussed in the British press.

With the promulgation of the Government of India Act 1935, the Council of India was abolished with effect from 1 April 1937, and a modified system of government was enacted. The Secretary of State for India represented the Government of India in the UK. He was assisted by a body of advisers numbering from 8–12 individuals, at least half of whom were required to have held office in India for a minimum of 10 years, and had not relinquished office earlier than two years before they were appointed advisers to the Secretary of State. The viceroy and governor-general of India, a Crown appointee, typically held office for five years though there was no fixed tenure, and received an annual salary of Rs. 250,800 p.a. (£18,810 p.a.). He headed the Viceroy's Executive Council, each member of which had responsibility for a department of the central administration. From 1 April 1937, the position of Governor-General in Council, which the viceroy and governor-general concurrently held in the capacity of representing the Crown in relations with the Indian princely states, was replaced by the designation of "HM Representative for the Exercise of the Functions of the Crown in its Relations with the Indian States", or the "Crown Representative". The Executive Council was greatly expanded during the Second World War, and in 1947 comprised 14 members (secretaries), each of whom earned a salary of Rs. 66,000 p.a. (£4,950 p.a.).

Until 1946, the viceroy held the portfolio for External Affairs and Commonwealth Relations, as well as heading the Political Department in his capacity as the Crown representative. Each department was headed by a secretary excepting the Railway Department, which was headed by a Chief Commissioner of Railways under a secretary. The viceroy and governor-general was also the head of the bicameral Indian Legislature, consisting of an upper house (the Council of State) and a lower house (the Legislative Assembly). The viceroy was the head of the Council of State, while the Legislative Assembly, which was first opened in 1921, was headed by an elected president (appointed by the Viceroy from 1921 to 1925). The Council of State consisted of 58 members (32 elected, 26 nominated), while the Legislative Assembly comprised 141 members (26 nominated officials, 13 others nominated and 102 elected). The Council of State existed in five-year periods and the Legislative Assembly for three-year periods, though either could be dissolved earlier or later by the Viceroy. The Indian Legislature was empowered to make laws for all persons resident in British India including all British subjects resident in India, and for all British Indian subjects residing outside India.

All three sectors of the economy—agriculture, manufacturing, and services—accelerated in postcolonial India. In agriculture, a huge increase in production took place in the 1870s. The most important difference between colonial and postcolonial India was the use of land surplus with productivity-led growth by using high-yielding variety seeds, chemical fertilizers, and more intensive application of water. All these three inputs were subsidised by the state. The result was, on average, no long-term change in per capita income levels, though the cost of living had grown higher. Agriculture was still dominant, with most peasants at the subsistence level.

Extensive irrigation systems were built, providing an impetus for switching to cash crops for export and for raw materials for Indian industry, especially jute, cotton, sugarcane, coffee and tea. India's global share of GDP fell drastically from above 20% to less than 5% in the colonial period. Historians have been bitterly divided on issues of economic history, with the Nationalist school (following Nehru) arguing that India was poorer at the end of British rule than at the beginning and that impoverishment occurred because of the British. Mike Davis writes that much of the economic activity in British India was for the benefit of the British economy and was carried out relentlessly through repressive British imperial policies and with negative repercussions for the Indian population. This is reified in India's large exports of wheat to Britain: despite a major famine that claimed between 6 and 10 million lives in the late 1870s, these exports remained unchecked. A colonial government committed to laissez-faire economics refused to interfere with these exports or provide any relief.

With the end of the state-granted monopoly of the East India Trading Company in 1813, the importation into India of British manufactured goods, including finished textiles, increased dramatically, from approximately 1 million yards of cotton cloth in 1814 to 13 million in 1820, 995 million in 1870, to 2050 million by 1890. The British imposed "free trade" on India, while continental Europe and the United States erected stiff tariff barriers ranging from 30% to 70% on the importation of cotton yarn or prohibited it entirely. As a result of the less expensive imports from more industrialized Britain, India's most significant industrial sector, textile production, shrank, such that by 1870–1880 Indian producers were manufacturing only 25%–45% of local consumption. Deindustrialization of India's iron industry was even more extensive during this period.

Jamsetji Tata (1839–1904) began his industrial career in 1877 with the Central India Spinning, Weaving, and Manufacturing Company in Bombay. While other Indian mills produced cheap coarse yarn (and later cloth) using local short-staple cotton and cheap machinery imported from Britain, Tata did much better by importing expensive longer-stapled cotton from Egypt and buying more complex ring-spindle machinery from the United States to spin finer yarn that could compete with imports from Britain.

In the 1890s, he launched plans to move into heavy industry using Indian funding. The Raj did not provide capital, but, aware of Britain's declining position against the US and Germany in the steel industry, it wanted steel mills in India. It promised to purchase any surplus steel Tata could not otherwise sell. The Tata Iron and Steel Company (TISCO), now headed by his son Dorabji Tata (1859–1932), began constructing its plant at Jamshedpur in Bihar in 1908, using American technology, not British. According to The Oxford Dictionary of National Biography, TISCO became the leading iron and steel producer in India, and "a symbol of Indian technical skill, managerial competence, and entrepreneurial flair". The Tata family, like most of India's big businessmen, were Indian nationalists but did not trust the Congress because it seemed too aggressively hostile to the Raj, too socialist, and too supportive of trade unions.

British India built a modern railway system in the late 19th century, which was the fourth largest in the world. At first the railways were privately owned and operated. They were run by British administrators, engineers and craftsmen. At first, only the unskilled workers were Indians. The East India Company (and later the colonial government) encouraged new railway companies backed by private investors under a scheme that would provide land and guarantee an annual return of up to 5% during the initial years of operation. The companies were to build and operate the lines under a 99-year lease, with the government having the option to buy them earlier. Two new railway companies, the Great Indian Peninsular Railway (GIPR) and the East Indian Railway Company (EIR) began to construct and operate lines near Bombay and Calcutta in 1853–54. The first passenger railway line in North India, between Allahabad and Kanpur, opened in 1859. Eventually, five British companies came to own all railway business in India, and operated under a profit maximization scheme. Further, there was no government regulation of these companies.

In 1854, Governor-General Lord Dalhousie formulated a plan to construct a network of trunk lines connecting the principal regions of India. Encouraged by the government guarantees, investment flowed in, and a series of new rail companies was established, leading to rapid expansion of the rail system in India. Soon several large princely states built their own rail systems and the network spread to the regions that became the modern-day states of Assam, Rajasthan and Andhra Pradesh. The route mileage of this network increased from 1,349 to 25,495 kilometres (838 to 15,842 mi) between 1860 and 1890, mostly radiating inland from the three major port cities of Bombay, Madras, and Calcutta.

After the Sepoy Rebellion in 1857, and subsequent Crown rule over India, the railways were seen as a strategic defence of the European population, allowing the military to move quickly to subdue native unrest and protect Britons. The railway thus served as a tool of the colonial government to control India as they were "an essential strategic, defensive, subjugators and administrative 'tool'" for the Imperial Project.

Most of the railway construction was done by Indian companies supervised by British engineers. The system was heavily built, using a broad gauge, sturdy tracks and strong bridges. By 1900 India had a full range of rail services with diverse ownership and management, operating on broad, metre and narrow gauge networks. In 1900, the government took over the GIPR network, while the company continued to manage it. During the First World War, the railways were used to transport troops and grain to the ports of Bombay and Karachi en route to Britain, Mesopotamia, and East Africa. With shipments of equipment and parts from Britain curtailed, maintenance became much more difficult; critical workers entered the army; workshops were converted to making munitions; the locomotives, rolling stock, and track of some entire lines were shipped to the Middle East. The railways could barely keep up with the increased demand. By the end of the war, the railways had deteriorated for lack of maintenance and were not profitable. In 1923, both GIPR and EIR were nationalised.

Headrick shows that until the 1930s, both the Raj lines and the private companies hired only European supervisors, civil engineers, and even operating personnel, such as locomotive engineers. The hard physical labour was left to the Indians. The colonial government was chiefly concerned with the welfare of European workers, and any Indian deaths were "either ignored or merely mentioned as a cold statistical figure." The government's Stores Policy required that bids on railway contracts be made to the India Office in London, shutting out most Indian firms. The railway companies purchased most of their hardware and parts in Britain. There were railway maintenance workshops in India, but they were rarely allowed to manufacture or repair locomotives.

After independence in 1947, forty-two separate railway systems, including thirty-two lines owned by the former Indian princely states, were amalgamated to form a single nationalised unit named the Indian Railways. India provides an example of the British Empire pouring its money and expertise into a very well-built system designed for military purposes (after the Rebellion of 1857), in the hope that it would stimulate industry. The system was overbuilt and too expensive for the small amount of freight traffic it carried. Christensen (1996), who looked at colonial purpose, local needs, capital, service, and private-versus-public interests, concluded that making the railways a creature of the state hindered success because railway expenses had to go through the same time-consuming and political budgeting process as did all other state expenses. Railway costs could therefore not be tailored to the current needs of the railways or of their passengers.

The British Raj invested heavily in infrastructure, including canals and irrigation systems. The Ganges Canal reached 560 kilometres (350 miles) from Haridwar to Cawnpore (now Kanpur), and supplied thousands of kilometres of distribution canals. By 1900 the Raj had the largest irrigation system in the world. One success story was Assam, a jungle in 1840 that by 1900 had 1,600,000 hectares (4,000,000 acres) under cultivation, especially in tea plantations. In all, the amount of irrigated land rose eightfold. Historian David Gilmour says:

By the 1870s the peasantry in the districts irrigated by the Ganges Canal were visibly better fed, housed and dressed than before; by the end of the century the new network of canals in the Punjab had produced an even more prosperous peasantry there.

Historians continue to debate whether the long-term intention of British rule was to accelerate the economic development of India, or to distort and delay it. In 1780, the conservative British politician Edmund Burke raised the issue of India's position: he vehemently attacked the East India Company, claiming that Warren Hastings and other top officials had ruined the Indian economy and society. Indian historian Rajat Kanta Ray (1998) continues this line of attack, saying the new economy brought by the British in the 18th century was a form of "plunder" and a catastrophe for the traditional economy of the Mughal Empire. Ray accuses the British of depleting the food and money stocks and of imposing high taxes that helped cause the terrible Bengal famine of 1770, which killed a third of the people of Bengal.

P. J. Marshall shows that recent scholarship has reinterpreted the view that the prosperity of the formerly benign Mughal rule gave way to poverty and anarchy. He argues the British takeover did not make any sharp break with the past, which largely delegated control to regional Mughal rulers and sustained a generally prosperous economy for the rest of the 18th century. Marshall notes the British went into partnership with Indian bankers and raised revenue through local tax administrators and kept the old Mughal rates of taxation.

The East India Company inherited an onerous taxation system that took one-third of the produce of Indian cultivators. Instead of the Indian nationalist account of the British as alien aggressors, seizing power by brute force and impoverishing all of India, Marshall presents the interpretation (supported by many scholars in India and the West) that the British were not in full control but instead were players in what was primarily an Indian play and in which their rise to power depended upon excellent co-operation with Indian elites. Marshall admits that much of his interpretation is still highly controversial among many historians.

The population of the territory that became the British Raj was 100 million by 1600 and remained nearly stationary until the 19th century. The population of the Raj reached 255 million according to the first census taken in 1881 of India. Studies of India's population since 1881 have focused on such topics as total population, birth and death rates, growth rates, geographic distribution, literacy, the rural and urban divide, cities of a million, and the three cities with populations over eight million: Delhi, Greater Bombay, and Calcutta.

Mortality rates fell in the 1920–1945 era, primarily due to biological immunization. Other factors included rising incomes and better living conditions, improved nutrition, a safer and cleaner environment, and better official health policies and medical care. Severe overcrowding in the cities caused major public health problems, as noted in an official report from 1938: In the urban and industrial areas... cramped sites, the high values of land and the necessity for the worker to live in the vicinity of his work ... all tend to intensify congestion and overcrowding. In the busiest centres houses are built close together, eave touching eave, and frequently back to back .... Space is so valuable that, in place of streets and roads, winding lanes provide the only approach to the houses. Neglect of sanitation is often evidenced by heaps of rotting garbage and pools of sewage, whilst the absence of latrines enhances the general pollution of air and soil.

During the British Raj, India experienced a large number of major famines, including the Great Famine of 1876–1878, in which 6.1 million to 10.39 million Indians perished and the Indian famine of 1899–1900, in which 1.25 to 10 million Indians perished. The first cholera pandemic began in Bengal, then spread across India by 1820. Ten thousand British troops and countless Indians died during this pandemic. Estimated deaths in India between 1817 and 1860 exceeded 15 million. Another 23 million died between 1865 and 1917. The Third plague pandemic, which started in China in the middle of the 19th century, eventually spread to all inhabited continents and killed 10 million Indians in India alone. Waldemar Haffkine, who mainly worked in India, became the first microbiologist to develop and deploy vaccines against cholera and bubonic plague. In 1925, the Plague Laboratory in Bombay was renamed the Haffkine Institute. Fevers ranked as one of the leading causes of death in India in the 19th century. Britain's Sir Ronald Ross, working in the Presidency General Hospital in Calcutta, finally proved in 1898 that mosquitoes transmit malaria, while on assignment in the Deccan at Secunderabad, where the Centre for Tropical and Communicable Diseases is now named in his honour.

In 1881, there were around 120,000 leprosy patients. The central government passed the Lepers Act of 1898, which provided legal provision for forcible confinement of people with leprosy in India. Under the direction of Mountstuart Elphinstone a program was launched to propagate smallpox vaccination. Mass vaccination in India resulted in a major decline in smallpox mortality by the end of the 19th century. In 1849 nearly 13% of all Calcutta deaths were due to smallpox. Between 1868 and 1907, there were approximately 4.7 million deaths from smallpox. Sir Robert Grant directed his attention to establishing a systematic institution in Bombay for imparting medical knowledge to the natives. In 1860, Grant Medical College became one of the four recognised colleges for teaching courses leading to degrees (alongside Elphinstone College, Deccan College and Government Law College, Mumbai).