Model Answer
0 min readIntroduction
Discriminating Protection, a cornerstone of British economic policy in India during the 19th and early 20th centuries, involved preferential treatment for British industries through tariffs, regulations, and other measures. This policy wasn’t about complete prohibition of Indian industries, but rather creating an uneven playing field that favored British manufactured goods. Rooted in the principles of mercantilism and the Industrial Revolution, it aimed to transform India into a supplier of raw materials and a market for British finished products. This policy significantly shaped the trajectory of Indian industrial development, hindering the growth of indigenous industries while fostering dependence on British imports.
The Policy of Discriminating Protection: Origins and Implementation
The policy evolved through several phases. Initially, following the decline of the Mughal Empire and the establishment of the East India Company’s political dominance, the focus was on dismantling existing Indian manufacturing centers, particularly textiles. This was achieved through high tariffs on Indian exports and low or no tariffs on British imports. The repeal of duties on British textiles in 1813, for example, flooded the Indian market with cheaper machine-made goods, devastating the handloom industry.
Key Instruments of Discriminating Protection
- Tariffs: High tariffs were imposed on Indian manufactured goods exported to Britain, while British goods entering India faced minimal or no duties.
- Railways & Infrastructure: While railways were built, their primary purpose was to facilitate the transport of raw materials from the Indian hinterland to ports for export to Britain, rather than promoting internal industrial growth.
- Exchange Rate Policy: Maintaining a favorable exchange rate (home charges) drained India of its wealth, limiting capital available for industrial investment.
- Forest Policies & Restrictions: Restrictions on access to forest resources hampered the growth of traditional forest-based industries.
- Company Regulations: The East India Company actively discouraged competition from Indian manufacturers through various regulations and monopolies.
Impact on Specific Industries
The impact of discriminating protection varied across industries. The textile industry suffered the most. The handloom industry, once a global leader, faced ruinous competition. The iron and steel industry, despite initial attempts at development (like the Tata Iron and Steel Company in 1907), struggled due to lack of government support and competition from cheaper British imports. However, some industries like jute, coal, and cotton ginning benefited from being suppliers of raw materials to British industries.
Table: Impact on Key Industries
| Industry | Impact | Reasons |
|---|---|---|
| Textiles | Decline | Competition from cheaper British machine-made goods, high export tariffs. |
| Iron & Steel | Slow Growth | Lack of government support, competition from British imports, high capital costs. |
| Jute | Growth (as raw material supplier) | Demand from British jute mills, favorable policies for raw material extraction. |
| Coal | Growth (as raw material supplier) | Demand from British industries, railway construction. |
Limited Industrialization & Rise of Nationalist Sentiment
While some limited industrialization occurred, it was largely confined to industries supporting British economic interests. The policy created a dualistic economy – a modern, export-oriented sector controlled by the British and a traditional, declining sector dominated by Indians. This economic exploitation fueled nationalist sentiment and demands for Swadeshi (self-reliance) and economic independence. The Swadeshi movement (1905-1911) was a direct response to the discriminatory policies and aimed to promote Indian industries.
Post-Independence Legacy
The legacy of discriminating protection continued to shape India’s industrial policy even after independence. The initial focus on import substitution industrialization (ISI) can be seen as a reaction to the historical disadvantages created by British policies. The long-term effects included a lack of competitiveness in certain sectors and a dependence on foreign technology.
Conclusion
The policy of Discriminating Protection, while ostensibly aimed at fostering economic development, primarily served British economic interests at the expense of Indian industrial growth. It led to the de-industrialization of India, the creation of a dependent economy, and the exacerbation of economic inequalities. The policy’s long-term consequences were profound, shaping the structure of the Indian economy for decades after independence and contributing to the rise of nationalist movements demanding economic self-reliance. Understanding this historical context is crucial for comprehending the challenges and opportunities facing India’s industrial development today.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.