Third Stage

The third stage is often described as the Era of Foreign Investments and International Competition for Colonies. It began around the 1860s in India owing to several changes in the world economy. These changes were as follows.

(i) Britain’s industrial supremacy was challenged by several countries of Europe, the United States and Japan.

(ii) As a result of the application of scientific knowledge to industry, the pace of industrialisation increased sharply (use of petroleum as fuel for the internal combustion engine and the use of electricity for industrial purposes were significant innovations).

(iii) The world market became more unified due to revolution in the means of international transport.

During this stage, Britain made strenuous efforts to consolidate its control over India. Liberal imperialist policies got replaced with reactionary imperialist policies which were reflected in the viceroyalties of Lytton, Dufferin, Lansdowne

and Curzon. The strengthening of colonial rule over India was meant to keep out the rivals as well as to attract British capital to India and provide it security. As a result, a very large amount of British capital got invested in railways, loans (to the Government of India), trade and, to a lesser extent, in plantations, coal mining, jute mills, shipping and banking in India.

The notion of training the Indian people for self- government vanished (revived only after 1918 because of pressure exerted by the Indian national movement). Now, the aim of British rule was declared as permanent ‘trusteeship’ over the Indians. The Indians were declared to be permanently immature—a ‘child’ people—needing British control and trusteeship. Geography, climate, race, history, religion, culture and social organisation were all cited as factors in making the Indians unfit for self-government or democracy. The British thus tried to justify their rule over Indians for centuries to come—all in the name of civilising a barbaric people—“the White Man’s burden”.