Question
What were canal colonies? Why were they built?

Answer

The areas irrigated by the new canals built by the British were called the Canal Colonies. These were introduced in the region of west Punjab. Peasants from the other parts of Punjab settled around these canals.
The British government built these new canals for the following reasons:
a. The British wanted to transform semi-desert wastelands into fertile agricultural land.
b. The Britishers wanted to export wheat and cotton. So people from other parts of Punjab were called and settled to grow wheat and cotton here.

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