Under British rule, both agriculture and industries suffered.
Heavy revenue demand, the policy of sub-letting land, small size of landholdings and commercialization of agriculture affected the peasants adversely. All these brought about further problems like indebtedness and famines.
Some efforts were made to improve agriculture. Irrigation facilities were expanded. Agricultural institutions to carry out research in agriculture were set up. However, agriculture remained stagnant and backward.
Transport and communication links were improved. Railways were developed to transport raw materials and finished goods to different areas of India and to send troops to disturbed areas. Through developed to serve British interests, the railways, indirectly helped the Indians also.
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Plantation and machine industries developed in India. The former was encouraged to ensure an unhindered supply of raw materials. Machine industries such as cotton, jute, coal, iron and steel, sugar, cement, paper, matches and glass making also grew. Industrial growth, however, remained slow.
Dadabhai Naoroji highlighted the ways through which the wealth of India was being drained out to Britain. This was the famous concept of Drain of Wealth.
People were poor, backward and exploited under the British. Two new social classes arose the capitalists and the industrial workers. India was treated as a colony of the mother country, Britain.