ABSTRACT
The allegedly evil effects of the impact of Britain on Indian industry are very widely cited 1 as the outstanding example of the manner in which colonialism and/or trade with capitalist countries could destroy indigenous manufacture and lock the dominated economy into the subservient position of supplying the materials for capitalist expansion. Some Marxists would not agree to any distinction between the evils of colonialism, and those of trade with the capitalist West. For those economists and politicians who do not accept this article of faith, the distinction is of great importance. A colonial power has many means at its disposal to exact tribute and to manipulate the economy of the colony in what it believes to be its own interest, means which are not open to a trading partner, however powerful. Government by foreigners may also have inhibiting effects apart from any deliberate exercise of influence.
