A century of colonial rule drained $64.82 trillion from India, with the wealthiest in Britain reaping most of the profits, says Oxfam’s latest inequality report released at Davos.
January 20, 2025: At the World Economic Forum in Davos, Oxfam International released a startling report titled “Takers, Not Makers”, revealing the staggering economic toll of British colonial rule in India. Between 1765 and 1900, the UK extracted $64.82 trillion from India, with $33.8 trillion—more than half—flowing to the wealthiest 10% in Britain.
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This massive transfer of wealth, enough to carpet London nearly four times over in £50 notes, underscores the enduring impact of colonial exploitation. Oxfam highlighted that beyond the richest elite, Britain’s emerging middle class also benefited significantly from colonialism, receiving 32% of the wealth siphoned from India.
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The report noted a precipitous decline in India’s global industrial output—from 25% in 1750 to just 2% by 1900—attributed to Britain’s protectionist policies that stifled Indian industry. For example, British-imposed tariffs on Indian textiles devastated India’s manufacturing sector, enriching British industrialists while impoverishing local workers.
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Oxfam also explored how colonial corporations, particularly the East India Company, played a key role in institutionalizing economic exploitation. The East India Company’s private army of 260,000 soldiers outnumbered Britain’s own peacetime forces, enforcing land grabs and crushing local resistance.
A Legacy of Inequality
The report linked historical colonial practices to present-day inequalities in the Global South. For example, workers in supply chains managed by modern multinational corporations face wage gaps of up to 95% compared to their counterparts in the Global North. These corporations, Oxfam argued, are the successors of colonial trading firms like the East India Company, perpetuating systems of exploitation through economic dependence and control.
Hidden Costs of Colonialism
The colonial period also saw devastating humanitarian impacts. Between 1891 and 1920, British policies led to 59 million excess deaths in India, including the Bengal famine of 1943, which claimed over 3 million lives. This famine, exacerbated by wartime grain restrictions and racial prejudice, is cited as one of the deadliest examples of colonial mismanagement.
Further, the report revealed how colonialism shaped modern socio-economic structures in India. The caste system was rigidly codified through British legal frameworks, while poppy cultivation for the opium trade enriched the British Raj but left Indian regions impoverished and underdeveloped.
Continuing Inequalities
Oxfam drew parallels between colonial practices and modern global dynamics. It criticized institutions like the WTO for favoring wealthy nations at the expense of the Global South. During the COVID-19 pandemic, for example, richer nations opposed an intellectual property waiver for vaccines proposed by India and South Africa, despite support from over 100 countries.
The report also highlighted the privatization of public services in developing nations, often facilitated by institutions like the World Bank. In India, the International Finance Corporation has funded elite private hospitals, while 37% of Indians face catastrophic health expenses.
A Call to Action
Oxfam called for systemic reforms to address these historical and ongoing inequities, emphasizing the need for fair trade policies, wealth redistribution, and accountability for multinational corporations.
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British colonialism, Oxfam report, wealth inequality, India colonial history, economic exploitation, East India Company, Global South inequalities, Bengal famine, multinational corporations, WTO policies