The three-way trade system that developed after the British Empire took over India is commonly referred to as the "triangular trade," involving three key regions: Britain, India, and other colonies or markets. This system functioned as follows:
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Raw Materials from India: The British Empire extracted valuable raw materials from India, such as cotton, indigo, tea, and spices. These resources were crucial for British industries, particularly during the Industrial Revolution.
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Manufactured Goods to India: In exchange for these raw materials, Britain exported manufactured goods back to India. This included textiles, machinery, and various consumer products produced in British factories. The influx of British goods often undermined local industries in India.
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Trade with Other Colonies: The third leg of the trade involved using the profits and goods from the trade with India to engage with other colonies, such as those in the Caribbean or Africa. The British would often trade Indian raw materials and manufactured goods in these regions, further expanding their economic network.
This triangular trade reinforced the economic exploitation of India, integrated its economy into the global market dominated by Britain, and had lasting impacts on Indian society and industry.