The British commercial policy had undergone a sea change before and after 1757. Before 1757 the English Company brought goods or precious metals in India and in exchange purchased cotton textiles, spices, etc.

The Company earned huge profit by selling these Indian articles in different foreign markets. But the Industrial Revolution in England around 1760 completely transformed Britain’s economic relations with India. The British industrialists that emerged looked upon India as a country that produced good quality of raw materials so much needed for the industries of Britain.

Thus there was no scope for export of Indian manufactures as it had happened before. As an impact of the Industrial Revolution India was transformed into an agricultural colony that supplied raw materials to Britain. Side by side the Indian markets were opened for the import of finished goods from Britain.