Britain Drained $64.82 Trillion from India During Colonial Rule, Oxfam Says
Britain drained $64.82 trillion from India during the colonial era, with $33.8 trillion—about half—ending up with the richest 10% in the UK, according to an Oxfam report. The report sheds light on the staggering scale of wealth extraction and its long-lasting consequences.
Historical Context of Wealth Extraction
Oxfam calculates that between 1765 and 1900, the richest 10% in the UK extracted wealth from India alone worth $33.8 trillion in today’s money. “This would be enough to carpet the surface area of London in £50 notes almost four times over,” the latest inequality report from the charity said.
Beyond the wealthiest, the newly emergent middle class also benefited significantly from colonialism. After the richest 10%, who received 52% of this income, the middle class received a further 32% of income, the report stated.
In 1750, the Indian subcontinent accounted for about 25% of global industrial output. However, by 1900, this figure had precipitously declined to a mere 2%. This dramatic reduction was attributed to Britain’s implementation of stringent protectionist policies against Asian textiles, which systematically undermined India’s industrial growth potential.
Military Dominance and Economic Impacts
Overwhelming military power enabled colonial exploitation. During the East India Company’s rule, military expenditure accounted for nearly 75% of expenses, while public works constituted only 3% on average. This neglect led to the deterioration of vital infrastructure, impairing farm output and intensifying famines and droughts.
The East India Company’s army in India totaled 260,000 soldiers, twice the size of the British peacetime army. This force was instrumental in land dispossession, violence, and mergers and acquisitions, contributing to the creation of the world’s first global financial system. Financial markets, especially in London, played a pivotal role in facilitating these colonial activities.
Modern-Day Parallels: New Forms of Colonialism
Oxfam’s report highlights that privatization and financialization of public services today represent new forms of colonialism, deepening inequality and dependency, particularly in the Global South. Essential services such as healthcare, education, and water are increasingly controlled by profit-driven corporations, often foreign-owned, which prioritize shareholder returns over public welfare.
The World Bank and European development finance institutes, in partnership with private capital and investment funds in the Global North, are promoting this privatization of public services in the Global South. For instance, Oxfam found that the World Bank’s International Finance Corporation (IFC) has financed high-end private hospitals in urban centers in India, where 37% of the population experiences catastrophic health expenditures in private hospitals. Similarly, education public-private partnerships (PPPs) supporting private schooling often fail the most vulnerable children and risk deepening inequality.
Billionaire Wealth Accumulation
Billionaire wealth grew by $2 trillion in 2024 alone, equivalent to $5.7 billion a day, at a rate three times faster than the year before. An average of nearly four new billionaires were minted every week. Meanwhile, the number of people living in poverty has barely changed since 1990, according to World Bank data.
In 2024, the number of billionaires rose to 2,769, up from 2,565 in 2023. Their combined wealth surged from $13 trillion to $15 trillion in just 12 months. The wealth of the world’s 10 richest men grew on average by almost $100 million a day. Even if they lost 99% of their wealth overnight, they would remain billionaires.
Structural Drivers of Inequality
Oxfam’s report reveals that 60% of billionaire wealth now comes from inheritance, monopoly power, or crony connections. Research by Forbes found that every billionaire under 30 has inherited their wealth, while UBS estimates that over 1,000 billionaires will pass on more than $5.2 trillion to their heirs over the next two to three decades. Many super-rich individuals, particularly in Europe, owe their wealth to historical colonialism and exploitation.
This dynamic of wealth extraction persists today, as vast sums of money still flow from the Global South to the Global North and their richest citizens. Oxfam’s report describes this as modern-day colonialism, perpetuating extreme levels of inequality.
Conclusion
The Oxfam report serves as a wake-up call, highlighting the lasting legacy of colonial exploitation and the ongoing structural inequalities that echo those practices. From historical wealth extraction to modern financial practices, the concentration of wealth and power remains a pressing global issue. Addressing these disparities requires systemic change and a commitment to equitable resource distribution, both locally and globally.