By the end of the nineteenth century, India was Britain’s biggest source of revenue, the world’s biggest purchaser of British exports and the source of highly paid employment for British civil servants and soldiers all at India’s own expense. We literally paid for our own oppression.
Taxation remained onerous. Agricultural taxes amounted at a minimum to half the gross produce and often more, leaving the cultivator less food than he needed to support himself and his family; British estimates conceded that taxation was two or three times higher than it had ever been under non-British rule, and unarguably higher than in any other country in the world. Each of the British ‘presidencies’ remitted vast sums of ‘savings’ to England, as of course did English civil servants, merchants and soldiers employed in India. (After a mere twenty-four years of service, punctuated by and including four years of ‘home leave’ furloughs, the British civil servant was entitled to retire at home on a generous pension paid for by Indian taxpayers: Ramsay MacDonald estimated in the late 1920s that some 7,500 Englishmen were receiving some twenty million pounds annually from India as pension.)
While British revenues soared, the national debt of India multiplied exponentially. Half of India’s revenues went out of India, mainly to England. Indian taxes paid not only for the British Indian Army in India, which was ostensibly maintaining India’s security, but also for a wide variety of foreign colonial expeditions in furtherance of the greater glory of the British empire, from Burma to Mesopotamia. In 1922, for instance, 64 per cent of the total revenue of the Government of India was devoted to paying for British Indian troops despatched abroad. No other army in the world, as Durant observed at the time, consumed so large a proportion of public revenues.