Model Answer
0 min readIntroduction
De-industrialisation, a significant decline in India’s manufacturing sector, occurred during the 19th century under British rule. Prior to British colonization, India possessed a thriving handicraft industry, renowned globally for textiles, iron, and shipbuilding. This period witnessed a reversal of this trend, transforming India from a manufacturing hub to a supplier of raw materials. This wasn’t a natural economic process but a consequence of deliberate policies and structural changes imposed by the British East India Company and later, the British Crown, fundamentally altering India’s economic landscape and contributing to widespread poverty.
Early Phase (1757-1857): Disrupting Traditional Industries
The initial phase of de-industrialisation began with the establishment of British political dominance following the Battle of Plassey (1757). The East India Company’s primary objective was to secure revenue and facilitate trade for Britain. This led to policies that systematically undermined Indian industries:
- Destruction of Handicraft Industries: The Company’s agents destroyed Indian handloom weavers’ tools and forced them to accept advances, effectively binding them to sell exclusively to the Company at low prices. This was particularly devastating for the textile industry in Bengal.
- Imposition of High Tariffs: Heavy tariffs were imposed on Indian manufactured goods entering Britain, while British goods were allowed into India duty-free. This created an uneven playing field, making Indian products uncompetitive in both markets.
- Monopoly Trade: The Company established a monopoly over trade, restricting Indian merchants’ access to markets and controlling the flow of goods.
Mid-Phase (1858-1900): Railway Expansion and Further Decline
The Sepoy Mutiny of 1857 and the subsequent transfer of power to the British Crown marked a new phase. While the Crown introduced some reforms, the underlying policies contributing to de-industrialisation continued:
- Railway Expansion: While presented as a modernizing force, the railways primarily served British economic interests. They facilitated the transportation of raw materials from the interior to ports for export to Britain and the distribution of British manufactured goods within India. This further integrated India into the global capitalist system as a supplier of raw materials.
- Rise of Factory Production in Britain: The Industrial Revolution in Britain led to mass production of cheaper manufactured goods, which flooded the Indian market, outcompeting local artisans.
- Land Revenue Policies: The introduction of land revenue systems like the Zamindari, Ryotwari, and Mahalwari systems increased the burden on Indian peasants, reducing their purchasing power and demand for handicrafts.
Late Phase (1900-1947): Intensification and Regional Variations
The 20th century witnessed the intensification of de-industrialisation, with regional variations. Some industries, like jute, experienced limited growth due to specific demands, but overall, the trend continued:
- World Wars and their Impact: While the World Wars temporarily boosted some Indian industries due to reduced imports from Britain, this was short-lived. After the wars, British goods re-entered the market, resuming the decline.
- Lack of Indigenous Capital: The British policies actively discouraged the development of indigenous capital and entrepreneurship, hindering the growth of Indian industries.
- Discriminatory Policies: Policies favouring British firms in government contracts and access to credit further disadvantaged Indian businesses.
Table: Impact on Key Industries
| Industry | Pre-British Status | Impact of De-industrialisation |
|---|---|---|
| Textiles | Globally renowned, major exporter | Decline in production, loss of export markets, widespread unemployment of weavers |
| Iron & Steel | Advanced metallurgical skills, production of high-quality iron | Decline in production, loss of skills, dependence on British imports |
| Shipbuilding | Leading shipbuilding industry | Complete collapse, loss of expertise |
It’s important to note that de-industrialisation wasn’t uniform across India. Some regions, like Bombay and Ahmedabad, witnessed the emergence of textile mills, but this was largely driven by British capital and served British interests. The decline of traditional industries led to widespread unemployment, poverty, and social unrest.
Conclusion
The de-industrialisation of India during the 19th century was a complex process driven by a combination of exploitative British policies and the inherent advantages of British industrial production. It wasn’t merely an economic shift but a deliberate dismantling of India’s traditional manufacturing base, transforming it into a supplier of raw materials and a market for British goods. This had devastating consequences for the Indian economy and society, contributing to long-term poverty and underdevelopment. Understanding this historical process is crucial for comprehending India’s economic challenges and its pursuit of self-reliance.
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.