3
                                                                                                           3.1
                                                          C h vol a ptiontoether ndian        onom
                                                                       Evolution of
                                                                          thE indian
                                                                            Economy
                         After 1757, when the East India Company took over the governance of Bengal,
                     the British relationship with India became exploitative, as exports to Britain and
                     opium exports to China were financed out of the tax revenue from Bengal. There
                     is not much evidence of significant transfer of European technology to Asia. To
                     understand why, it is useful to scrutinise the experience of China and India, as they
                        accounted for three-quarters of the Asian population and GDP in 1500 AD.*
     In This Chapter...
     ‰ The Background                                       ‰ Planned and Mixed Economy
     ‰ Prime Moving Force: Agriculture vs. Industry         ‰ Emphasis on the Public Sector
      * Angus Maddison,          I                          T                   The AEI Press, Washington DC, 2005,
      p. 60.