Asians ahead after the first round?

This study depicts the amount and kind of development in the Indian economy during the Second World War. The discussion focuses on economic aspect of Indo-British relations. These were characterised by various control mechanisms, control of foreign trade and currency controls necessary in a wartime economy. The Anglo-American loan agreement of 1941 will also be taken into consideration here, as it led to the financial dependency of Great Britain on the U.S.A., which then had repercussions for Indo-British economic relations and also for the finance policies of Great Britain and India. Further consequences of the agreement, especially apparent in the post-war era, are also discussed.