The policy of economic exploitation by the British government served as a background to Indian national movement. The chief purpose of the economic exploitation of India was to buy raw material from India at a very cheap rate and to convert India into a lucrative market for its finished goods.
The British policy of economic exploitation destroyed ancient handicraft cottage industry and the big industries of India. These included cotton, silk and woolen textile industries and industries connected with steel, leather and sugar. There was great discontentment in hearts of Indians against the policy of economic exploitation implemented by the British government. So, the Indians began to participate actively in national movement.