The British economic policies destroyed the handicrafts and cottage industries of India which at one time formed the primary sources of trade and wealth. Cotton weaving and spinning industries, silk and woolen industries, pottery, paper, metal and tanning all were ruined by British.
This broke the age-old relation between agriculture and industry in the countryside and led to the destruction of the self-sufficient Indian village economy. This also resulted in widespread unemployment and overcrowding of the agricultural sector.