This is a reposting of a contribution to the "How did India go from Being a Rich Country to a Poor Country" thread.

Two of the earliest policies in India were to establish monopolies in key industries such as salt, tobacco, and essential spices, as well as to discourage manufacturing.

The most significant early economic policy of the British was the salt tax. It is said that in hot regions salt is worth more than gold. It was a necessity of life, which is...