An Era of Darkness: The British Empire in India

by Shashi Tharoor

It was a splendid racket for everyone, apart from the Indian taxpayer. In terms of a secure return, Indian railway shares offered twice as much as the British government’s own stock. Guaranteed Indian railway shares absorbed up to a fifth of British portfolio investment in the twenty years to 1870—the first line opened in 1853—but only 1 per cent of it originated in India. Britons made the money, controlled the technology and supplied all the equipment, which meant once again that the profits were repatriated. It was a scheme described at the time as ‘private enterprise at public risk’. All the losses were borne by the Indian people, all the gains pocketed by the British trader—even as he penetrated by rail deep into the Indian economy.