Seigniorage as Extraction: The colonial state captured a 42% profit margin on the production of token rupees, funneling the equivalent of $3.2 billion (2025 $USD) into British government securities between 1900 and 1912.
The Masse de Manœuvre: India’s centralized reserves—$7.9 billion in today’s money—were used to suppress British interest rates, while Indian markets faced chronic capital stringency.
The Counter‑Cyclical Suction Pump: British policy systematically inflated the center and deflated the colony, forcing Indian households to liquidate assets to meet fixed sterling obligations.
The Great Gold Disgorgement: The 18d. interwar peg compelled the export of $22.8 billion (2025 $USD) in gold from India between 1931 and 1939, underwriting the pound’s recovery during the Depression.
Institutional Persistence: London prioritized control over Indian finance above all other spheres of rule, structuring the Reserve Bank of India to protect extraction from future democratic pressure.
