The focus of economic policies pursued by file colonial government in India was to make India an exporter of raw material for feeding the rapidly expanding modern industrial base and to target India as a market for its finished goods.
The British policies had the following impact on India
(i) Agricultural sector had a lot of surplus labour and had extremely low productivity.
(ii) Industrial sector was backward and lacked diversification.
(iii) Poverty and unemployment were high.
(iv) Infrastructural facilities needed upgradation.
(v) Foreign trade was beneficial for the Britishers.