Colonialism:

Colonialism is a system in which one powerful country establishes political and economic control over another country or territory, and exploits its resources, labour and markets for its own benefit.

Main features of colonialism:

1. Political control: The colony is ruled from outside — its people have no real say in how they are governed
2. Economic exploitation: The colony becomes a supplier of cheap raw materials and a market for the finished goods of the ruling country
3. Destruction of local industry: Indian handicrafts and handloom weaving declined because of cheap machine-made imports
4. Drain of wealth: Wealth flowed continuously from the colony to the ruling country — Dadabhai Naoroji called this the 'Drain of Wealth'
5. Cultural domination: The rulers' language, education and culture were imposed as superior

Example: British rule in India from 1757 to 1947 is the classic example of colonialism.