In 1600, when the East India Company was founded, Britain was generating 1.8 per cent of the world's GDP, while India was producing 22.5 per cent. By 1870, at the peak of the Raj, Britain was generating 9.1 per cent, while India had been reduced for the first time to the epitome of a Third World nation, a symbol across the globe of famine, poverty and deprivation.
Today in India, the dramatic increase in wealth that we see on all sides is less some sort of economic miracle - the strange rise of a once impoverished wasteland, as it is usually depicted in the Western press - so much as things slowly returning to the traditional pattern of global trade in the pre-colonial world. Last year, the richest man in the UK was for the first time an ethnic Indian, Lakshmi Mittal, and our largest steel manufacturer, Corus, has been bought by an Indian company, Tata.
Extraordinary as it is, seen from the wider perspective the rise of India and China is merely nothing more than a return to the ancient equilibrium of world trade. Today, we Europeans are no longer the gun-toting, gunboat-riding colonial masters we once were, but instead are reverting to our more traditional role: that of eager consumers of the much celebrated luxuries and services of the East.
# William Dalrymple's new book, The Last Mughal: The Fall of a Dynasty, Delhi 1857, published by Bloomsbury, has just been awarded the Duff Cooper Prize for History.
More at http://www.telegraph.co.uk/portal/main.jhtml?view=DETAILS&grid=&xml=/portal/2007/08/04/nosplit/ftindia104.xml
