Model Answer
0 min readIntroduction
Prior to the 18th century, India possessed a highly developed and globally significant manufacturing sector, particularly in textiles, iron, and shipbuilding. Often described as a ‘workshop of the world’, Indian goods enjoyed a substantial share of the global market. However, the arrival of the British East India Company marked a turning point, initiating a process of de-industrialization that fundamentally altered India’s economic landscape. This note will briefly examine the state of manufacturing in 18th-century India and the subsequent factors contributing to its decline, impacting its long-term economic trajectory.
Manufacturing in 18th Century India
The 18th century witnessed a vibrant manufacturing sector in India, characterized by:
- Textile Industry: Dominated by cotton textiles, particularly muslin and calico, renowned for their quality and intricate designs. Centers like Dhaka, Murshidabad, and Surat were major production hubs, exporting to Europe, Asia, and Africa.
- Iron and Steel: India produced high-quality wrought iron, used for tools, weapons, and construction. The technology was advanced, with the production of crucible steel being particularly notable.
- Shipbuilding: Indian shipyards were capable of building large and seaworthy vessels, catering to both domestic and international trade.
- Other Industries: Sugar, indigo, saltpeter, and various handicrafts also flourished, contributing to a diversified manufacturing base.
This manufacturing activity was largely organized through a putting-out system, where merchants supplied raw materials to artisans and collected the finished goods. Guilds and merchant communities played a crucial role in regulating production and trade.
De-industrialization: Mechanisms and Impact
The British East India Company’s policies systematically undermined Indian manufacturing, leading to de-industrialization. Key mechanisms included:
- Discriminatory Tariffs: High tariffs were imposed on Indian textiles imported into Britain, while British textiles were allowed duty-free access to India. This created an uneven playing field, making Indian goods less competitive.
- Destruction of Local Industries: The Company actively suppressed Indian industries that competed with British manufacturers. For example, the silk industry in Bengal was deliberately ruined to promote British silk production.
- Forced Commercialization of Agriculture: Farmers were compelled to grow cash crops like indigo and opium for the Company, diverting resources away from food production and traditional crafts.
- Imposition of the Permanent Settlement (1793): This land revenue system created a class of landlords who were primarily interested in maximizing their profits, leading to the exploitation of artisans and a decline in rural industries.
- Rise of Factory Production in Britain: The Industrial Revolution in Britain led to the mass production of cheaper goods, which flooded the Indian market, further displacing local artisans.
Impact on Specific Industries
| Industry | Pre-18th Century Status | Post-Deindustrialization Status |
|---|---|---|
| Textiles | Global leader, high-quality exports | Declined significantly, became reliant on British imports |
| Iron & Steel | Advanced technology, significant production | Production dwindled, lost technological edge |
| Shipbuilding | Capable of building large vessels | Virtually disappeared, reliant on British ships |
The de-industrialization process resulted in widespread unemployment, poverty, and a decline in India’s economic self-sufficiency. It transformed India from a manufacturing hub into a supplier of raw materials for British industries.
Conclusion
The 18th and 19th centuries witnessed a dramatic shift in India’s economic fortunes, transitioning from a thriving manufacturing center to a largely agrarian economy under British rule. The deliberate policies of the East India Company, coupled with the rise of industrialization in Britain, systematically dismantled India’s traditional industries. This de-industrialization had long-lasting consequences, contributing to India’s economic backwardness and shaping its post-independence development challenges. Revitalizing the manufacturing sector remains a crucial objective for India today.
Answer Length
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