UK Extracted $64.82 Trillion from India During Colonial Rule, Oxfam Report Reveals

Featured & Cover UK Extracted $64 82 Trillion from India During Colonial Rule Oxfam Report Reveals

Oxfam International’s latest global inequality report, titled “Takers, Not Makers,” reveals that the United Kingdom extracted an astonishing $64.82 trillion from India over 135 years of colonial rule, from 1765 to 1900. Of this massive sum, $33.8 trillion benefited the wealthiest 10 percent of British society. This amount is so vast that it could cover London’s surface area almost four times over with £50 notes. The report, released just hours before the annual World Economic Forum meeting, highlights the enduring impact of colonial exploitation on global inequality.

“Legacies of inequality and pathologies of plunder, pioneered during the time of historical colonialism, continue to shape modern lives,” Oxfam stated in the report. The organization argues that colonial-era practices have created a deeply unequal world, marked by divisions rooted in racism and economic exploitation. Oxfam asserts that wealth continues to be systematically extracted from the Global South, primarily benefiting the richest individuals in the Global North.

The report draws from various studies and historical research to support its claims. According to Oxfam, the $33.8 trillion siphoned from India by the UK’s wealthiest during colonial times represents a significant portion of the total wealth extracted. “This would be enough to carpet the surface area of London in British pound 50 notes almost four times over,” the report emphasizes.

Oxfam also highlights that many of the UK’s wealthiest individuals today can trace their fortunes back to the colonial era, particularly to compensation payments given to slave owners after the abolition of slavery. This historical wealth accumulation has had a lasting effect, with economic advantages passed down through generations.

The report underscores the role of colonialism in shaping modern multinational corporations. Oxfam describes these corporations as products of colonial systems, with roots in entities like the East India Company, which operated with near-sovereign powers and was responsible for numerous colonial crimes. “In the modern day, multinational corporations, often occupying monopoly or near-monopoly positions, continue to exploit workers in the Global South, particularly women workers, on behalf of rich shareholders primarily based in the Global North,” Oxfam noted.

Global supply chains and export processing industries are portrayed as modern equivalents of colonial exploitation, facilitating the continuous transfer of wealth from the Global South to the Global North. Workers in these industries often face harsh conditions, lack collective bargaining rights, and receive minimal social protection. The report points out that wages in the Global South are between 87 percent and 95 percent lower than those in the Global North for jobs requiring similar skills.

Oxfam asserts that large multinational corporations dominate global supply chains, reaping the benefits of cheap labor and resource extraction from the Global South. These corporations capture the majority of profits while perpetuating economic dependence and exploitation. “They capture the vast majority of profits and perpetuate dependence, exploitation, and control through economic means,” the report states.

Beyond the wealthiest elites, colonialism also enriched the emerging middle class in Britain. Oxfam estimates that after the richest 10 percent, who received 52 percent of the income extracted from India, the new middle class claimed an additional 32 percent. This distribution of wealth underscores how deeply colonial exploitation was embedded in British society.

The economic impact of colonialism on India was devastating. In 1750, the Indian subcontinent accounted for around 25 percent of global industrial output. However, by 1900, this figure had plummeted to just 2 percent. Oxfam attributes this sharp decline to Britain’s protectionist trade policies, which systematically stifled India’s industrial growth. “This dramatic reduction can be attributed to Britain’s implementation of stringent protectionist policies against Asian textiles, which systematically undermined India’s industrial growth potential,” the report explains.

Ironically, it took a global conflict to temporarily ease this industrial suppression. During World War I (1914–1918), disruptions in colonial trade inadvertently spurred industrial growth in several colonies. Oxfam notes that regions experiencing significant declines in British imports during the war saw notable increases in industrial employment. “Regions with significant decreases in British imports during the war demonstrated enhanced industrial employment growth—a pattern that is still visible today,” the report observes.

The report further highlights that colonial expansion was often driven by private interests rather than purely state-led initiatives. Private companies like the East India Company played a central role in establishing and maintaining colonial dominance, exploiting both people and resources for profit. This legacy continues to influence modern corporate practices, where multinational corporations often prioritize profits over social responsibility, particularly in developing countries.

Oxfam’s report also connects historical colonial practices to present-day economic inequalities. The organization argues that the structures of global capitalism are deeply rooted in colonial systems of wealth extraction and exploitation. Modern economic policies, trade agreements, and corporate practices often mirror the same dynamics of control and dependency established during colonial times.

“Global supply chains and export processing industries represent modern colonial systems of south-north wealth extraction,” Oxfam states, drawing a direct line between historical colonialism and contemporary economic structures. The organization emphasizes that without addressing these systemic issues, global inequality will continue to deepen.

The report calls for urgent reforms to address these historical injustices and create a more equitable global economic system. Oxfam advocates for policies that promote fair wages, protect workers’ rights, and reduce the concentration of wealth among the global elite. The organization also emphasizes the importance of acknowledging and addressing the historical roots of modern economic disparities.

In conclusion, Oxfam’s “Takers, Not Makers” report paints a stark picture of the enduring impact of colonialism on global inequality. The staggering amounts of wealth extracted from India during British colonial rule—$64.82 trillion in total, with $33.8 trillion benefiting the richest 10 percent—highlight the scale of historical exploitation. The report underscores that the legacies of colonialism are not confined to the past but continue to shape the present, influencing everything from corporate practices to global economic policies.

“This has created a deeply unequal world, a world torn apart by division based on racism, a world that continues to systematically extract wealth from the Global South to primarily benefit the richest people in the Global North,” Oxfam concludes, calling for a global reckoning with the past to build a more just and equitable future.

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