Impoverishment of peasantry was one of the outcome of British policies. The agrarian and the industrial sector was hit hard by the Britishers rules and regulation. These were framed to serve the ultimate interest of British rules.
The colonial economic policies and commercialisation of agriculture were major reasons for destruction of self sufficient village system. Traditional system of jajmani also got affected. The British rule also snatched away the patronage to handicrafts industries. This lead to migration to peasantry. This over- burdened peasantry also got exposure to complex judicial system.
The Judicial system introduced by Britishers was also not in favour of peasants. Earlier in traditional system justice was served in timely manner. This process got further delayed by introduction of complex judicial system. This also lead to additional expenditure on the pocket of peasantry.
Introduction of money lenders also lead to the exposure of peasantry to expensive loans. Money lenders used to charge at high rate. Non payment of loan lead them into perpetual poverty. Gradually, over large areas, the actual cultivators were reduced to the status of tenants-at-will, share croppers and landless labourers.