UPSC MainsECONOMICS-PAPER-II201920 Marks
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Q6.

Trace the development of the cotton textile industry in India during the British period. Discuss the major problems faced by the industry in different stages of its growth during this period.

How to Approach

This question requires a historical tracing of the cotton textile industry in India under British rule, focusing on its evolution and the challenges faced at each stage. The answer should be structured chronologically, covering the pre-British period briefly, then detailing the impact of British policies (mercantilism, de-industrialization, and later, limited industrialization). Emphasis should be placed on the problems faced by Indian producers – competition from machine-made goods, raw material constraints, lack of capital, and discriminatory policies. A balanced approach acknowledging both the destructive and limited constructive aspects of British rule is crucial.

Model Answer

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Introduction

The Indian cotton textile industry held a prominent position globally for centuries, renowned for its fine fabrics and intricate designs. Prior to British rule, it was a thriving sector, providing livelihoods to millions and contributing significantly to India’s economic prosperity. However, the arrival of the British East India Company marked a turning point, initiating a period of de-industrialization and transformation. This period witnessed a complex interplay of mercantilist policies, technological advancements in Britain, and the gradual emergence of a modern cotton mill sector in India, all accompanied by significant challenges for Indian artisans and producers. This answer will trace the development of this industry and analyze the major problems encountered during different phases of its growth under British rule.

Pre-British Period: A Flourishing Industry

Before the advent of British rule, India’s cotton textile industry was globally competitive. Indian textiles, particularly muslin, calico, and chintz, were highly sought after in Europe, Asia, and Africa. Production was decentralized, with skilled artisans working in villages and towns. The industry was characterized by high-quality craftsmanship, diverse product range, and a robust internal and external trade network. Local rulers often patronized the industry, fostering its growth.

Early British Period (1757-1857): De-Industrialization

The British East India Company’s initial policies led to the systematic de-industrialization of the Indian cotton textile industry. This phase was marked by:

  • Mercantilist Policies: The British implemented policies favoring British manufacturers. High tariffs were imposed on Indian cotton textiles exported to Britain, while British textiles were imported into India duty-free.
  • Destruction of Local Manufacturing: British agents often destroyed spinning wheels and looms to suppress Indian competition.
  • Forced Commercialization of Agriculture: Indian farmers were compelled to grow cotton as a raw material for British mills, reducing their ability to produce food crops and increasing their dependence on the market.
  • Decline of Indian Ports: The shift in trade routes and the promotion of British ports led to the decline of traditional Indian trading centers.

The result was a significant decline in Indian textile exports and a loss of livelihoods for millions of artisans. The industry shifted from being an exporter to largely serving the domestic market, and even that was increasingly threatened by British imports.

Mid-British Period (1858-1900): Emergence of the Mill Sector & Continued Challenges

The second half of the 19th century saw the emergence of the modern cotton mill sector in India, primarily driven by Indian entrepreneurs. However, this growth was hampered by several challenges:

  • Competition from British Mills: Despite the establishment of Indian mills, they faced stiff competition from cheaper, machine-made textiles from Britain.
  • Lack of Capital & Technology: Indian mills lacked access to adequate capital and advanced technology compared to their British counterparts.
  • Raw Material Constraints: The supply of high-quality cotton was often limited, and Indian mills were often forced to import raw cotton from other countries.
  • Discriminatory Railway Policies: Railway freight policies favored the transportation of British textiles, further disadvantaging Indian mills.

The first cotton mill was established in Bombay (Mumbai) in 1854. By 1890, there were over 20 mills in Bombay and Ahmedabad. However, the industry remained heavily reliant on British capital and technology.

Late British Period (1900-1947): Growth & Nationalist Response

The early 20th century witnessed a period of growth for the Indian cotton textile industry, fueled by:

  • Swadeshi Movement (1905-1911): The Swadeshi movement provided a significant boost to the Indian textile industry, as consumers boycotted foreign goods and embraced locally made products.
  • World War I (1914-1918): The war disrupted the supply of British textiles, creating opportunities for Indian mills to expand their production.
  • Protectionist Policies: Limited protectionist measures were adopted by the British government to support the Indian industry.

However, the industry continued to face challenges, including:

  • Dependence on Raw Cotton Imports: The industry remained heavily reliant on imported raw cotton, particularly from the United States.
  • Labor Issues: Poor working conditions and low wages led to frequent labor unrest.
  • Competition from Japan: After World War I, Indian mills faced increasing competition from Japanese textiles.

The growth of the industry also played a crucial role in the Indian nationalist movement, with textile mills becoming centers of political activism and labor organization.

Period Key Features Major Problems
1757-1857 De-industrialization, Mercantilist policies High tariffs on Indian exports, destruction of local manufacturing, forced commercialization of agriculture
1858-1900 Emergence of mill sector, Indian entrepreneurship Competition from British mills, lack of capital & technology, raw material constraints
1900-1947 Growth fueled by Swadeshi & WWI, protectionist measures Dependence on raw cotton imports, labor issues, competition from Japan

Conclusion

The development of the Indian cotton textile industry during the British period was a complex and often contradictory process. While the British policies initially led to the de-industrialization of the sector, the emergence of the modern mill industry demonstrated the resilience and entrepreneurial spirit of Indian businessmen. However, the industry remained constrained by structural weaknesses, discriminatory policies, and external competition. The story of the Indian cotton textile industry under British rule serves as a stark reminder of the economic consequences of colonialism and the challenges faced by developing nations in building a sustainable industrial base.

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.

Additional Resources

Key Definitions

De-industrialization
The process of decline in the industrial sector of an economy, often resulting in the loss of jobs and economic output. In the context of British India, it refers to the systematic dismantling of the traditional Indian handicraft industries.
Mercantilism
An economic policy prevalent in Europe during the 16th-18th centuries, advocating for maximizing exports and minimizing imports to accumulate wealth (typically gold and silver). British policies in India were largely guided by mercantilist principles.

Key Statistics

Between 1815 and 1835, the export of Indian cotton textiles to Britain fell from 53% to 11% of total British textile imports. (Source: Dharma Kumar, *The Cambridge Economic History of India*, Vol. 2)

Source: Dharma Kumar, *The Cambridge Economic History of India*, Vol. 2

By 1900, India had approximately 193 cotton mills, employing over 260,000 workers. (Source: Indian National Congress Report on the Cotton Industry, 1900)

Source: Indian National Congress Report on the Cotton Industry, 1900

Examples

The Case of Surat

Surat, once a major textile trading center, experienced a significant decline in its economic importance during the British period due to the shift in trade routes and the decline of Indian textile exports. The city’s population and economic activity dwindled as a result.

Frequently Asked Questions

What role did the Swadeshi movement play in the revival of the Indian cotton textile industry?

The Swadeshi movement (1905-1911) encouraged Indians to boycott foreign goods, including British textiles, and to purchase locally made products. This led to a surge in demand for Indian textiles, providing a significant boost to the industry and fostering its growth.

Topics Covered

HistoryEconomyTextile IndustryBritish IndiaIndustrial History