British Indian Railways: The Economic Wheel of Colonization and Imperialism

The British Crown ruled in Sub-Continent for over two centuries, this was the era of darkness, slavery, the plundering of Indian resources, and ruthless economics & political policies. Indian land remained a consumer society and the producer of raw materials for the British Empire from the eighteen to the twentieth century, whereas, the vast and modern network of railways in India is considered to be Britain's greatest gift to the Indians. Undoubtedly, these railways have been an important means of transportation in India, but the British Colonizers did not build this system of railways in the public interest rather it was laid to serve the colonial interest. This research article identifies Britain’s strategic and economic interests in building railways in India. Construction of railways in India began in 1850 and European companies had been awarded contracts to build railway tracks, in return for the contracts, the companies were guaranteed five percent investment security. The companies were also given access to free land for 99 years and millions of pounds in fines were paid to the companies from the Indian exchequer for non-payment of guaranteed income. The main purpose of building the railway was to speed up the export of cotton, jute, iron, minerals, etc. from India to European countries, while from a strategic point of view, military equipment and supplies were also transferred by rail to military bases across India. This research paper explores how the railway track was built keeping in view the importance of military barracks. Under the British colonial policy, European companies invested heavily in the railways, but during 200 years of British rule, India's industrial growth rate fell from 3% to 10%. All the agreements made by the British colonizers with the railway companies were unilateral. The agreements provided financial benefits from the Indian treasury to companies. This research also reveals that India's railway network was built by the government through private companies, which included European capitalists and retired officers of the colonial army, who were having control over the London-based secretary of state of India. These companies were so powerful, that whenever the Government of India complained of a breach of contract and tried to end it, it was the Secretary of the state who rejected the decisions of the Governor-General of India. On the other hand, the expense for the construction of railways was £15000 more per mile than it was in the United States and Europe.