The Timaru Herald THURSDAY, JANUARY 7, 1943. NO PROFIT FROM INDIA

Timaru Herald, Volume CLIII, Issue 22473, 7 January 1943, Page 2

The Timaru Herald THURSDAY, JANUARY 7, 1943. NO PROFIT FROM INDIA

11 is one of the dogmas of Marxism lliat the capitalistic system was aide to live and even to expand ihiring the nineteenth century only because it was exploiting the backward countries of the world.*' states the \eiv York Tinies. Serious statistical evidence to support this thesis has never been offered. There are many people to-day who believe that Britain is holding on to India chiefly because of the profit that the British make out of India. In this connection some very interesting figures were recently made available by T. A. Raman, formerly London editor of The I oiled Press of India. There is as little to be said, according to Mr Raman, for the activities of the East India Company and its immediate successors as there is to be said for George 111. But when the situation to-day is considered the picture is a far different one.

India for example, to-day pays no sort of direct or indirect tax to Great Britain, or any subsidy or tribute. British industries operating in India —factories, mines, public utilities, estates, trading concerns—have to-day an estimated capital value of a little less than £400,000,000. Their profit in recent years has been computed at about £14,000,000 annually. Tn 1937 the British had loans outstanding in India of a total amount of £220,000,000, yielding to British nationals interest of some £8,000,000. Since the war, however, India has wiped out this debt almost entirely. Britain and the Commonwealth have bought so much from India of raw materials and manufactured goods that India has been able to build up huge sterling credits. With part of these India has repaid more than 80 per cent of these former loans. It is expected that within a few months the entire debt will have been paid off. Britain, therefore, now gains little or nothing by way of interest.

As to British nationals working in India, it can be revealed that of a total of more than 500,000 employed by the administration only 2,500 are British, the rest Indians. There are, all told, about 10,000 British making a living in India. As to foreign trade, the balance with Britain is now overwhelmingly in India s favour. Great Britain, as Mr Raman sums it up, has no more economic interest in India than in the free commonwealths ot Canada, Australia or in an outside country like Argentina.

India’s defence expenditure has mounted since the outbreak of the war. The armed forces have risen from less than 200,000 in peacetime Io a present figure of more than 1,500,000. But, by the terms of an agreement with Britain, India pays only for the internal expenses of her defence, the balance being paid by the British Government. As a result of this, two-thirds of the defence cost of India—about £120,000,000—was met by Britain <in 1941. In 1942 the British share was estimated to amount to £300,000,000.