In this assignment we can see corelation between economic development and political situation in India, during the reign of Great Britain. Before colonial India, especially during Moghul empire, economically Indian society had typical closed village communities known as caste and more developed cities. With the arrival of the English things changed, because they brought capitalism, Christianity and completely new mentality. They started with the industrialization of India, abolition of caste and closing of traditional industrial plants. Thus began political connection between Indian intellectuals, where Mahatma Gandhi played a major role. In 20's and 30's conditions were tense in society, economy and politics. There were more and more disagreements between Indian Congress, which was main political organization in India and british government, economically, India saw only small growth, even deindustrialization was occuring and consequentally there was even more agrarian population and unemployment among people. After the 2nd world war the British Empire was completely exhausted, which India used to gain independence in year 1947.