Modern economic historians have blamed the colonial rule for the dismal state of India's economy, with investment in Indian industries limited since it was a colony. Under British rule, India's native manufacturing industries shrank. During the British East India Company's rule in India, production of food crops declined, mass impoverishment and destitution of farmers and numerous famines. The economic policies of the British Raj caused a severe decline in the handicrafts and handloom sectors, with reduced demand and dipping employment; the yarn output of the handloom industry, for example, declined from 419 million pounds in 1850 to 240 million pounds in 1900. The result was a significant transfer of capital from India to England, which led to a massive drain of revenue rather than any systematic effort at modernisation of the Indian economy.