The colonial economy impacted all aspects of the prevailing Indian economy. First, private property in land came to be recognized in India. Land became a private property which could be purchased or sold. Second, the British introduced the system of paying land- revenue in cash.

This system forced the peasants to fall in the clutches of the greedy money-lenders. Third, the new economic policy of the British converted India into a country that supplied raw materials to the industrial establishment of Britain.

Fourth while there was deindustrialization of the country the finished products of Britain flooded the markets of the country. Fifth, as a result of the new economic policy there was the breakdown of the traditional economy of India. Thus the unity of village agriculture and industry was disrupted.