This monograph is a new and original venture to make an interpretation of the phenomenon of under-development in India. Such an endeavour had not been undertaken by social scientists in the past, and this work is a path-breaking effort by this author. The nature and causes of underdevelopment and backwardness in India, which came under British domination, in spite of the historic background of this country with ancient glory and spiritual history, had been subjected to scientific investigation in this research work. The theoretical contributions of Francois Perroux (1903-1987), the French economist of world reputation, is a special characteristic of this research work. The British domination and the establishment of the British empire had been interpreted by the utilisation of the ideas of Francois Perroux. This is a very special feature of this research work. The author had worked in close collaboration with this economist in Paris for several years. The features of Hinduism in India in relation to the precipitation of under-development is also a special feature of this research work. Political economy as a theme of research endeavour had not taken shape in India at the present epoch. Hence, this endeavour has such a major claim also for this special feature in finding out the causes of backwardness of this ancient country. The features of colonialism which was established in this land are traced in depth while the religious features are given due importance.