This dissertation aim's to look at how British colonization of India as affected her economy today. Through research it has been found, that India, due to its history was at a handy cap when it came to economic growth. The British rule from 1858 to 1947 drained the wealth of India, the British reasons for colonialism according to Maddison (1971) were purely economic. They saw India as a main component in the in the hierarchy of power, of the world. For many years after India gained its independence in 1947 it was a closed economy, with bad infrastructure and low growth rates. However since the crisis in 1991 India has made social reforms, which has helped it become one of the fasted growing third world countries in the world. It is argued that India has further to go, as does Rajadhyaksha (2006) that India has great potential because of its huge population, its increase in the middle class population, economic liberalization and its relationship with outside world for further economic growth. There is a vast amount of literature that supports that supports my view, because India is such a relevant country today. I chose this as a topic because I feel that India is on the verge of exploding economically. Although India is yet to over take China in terms of in terms of PPP (purchasing power parity), it is still a relatively young country, and in the next 50 years it could take over China.