UPSC MainsECONOMICS-PAPER-II202120 Marks
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Q6.

Compare the main features of development of jute and cotton textile industry in India during the British period.

How to Approach

This question requires a comparative analysis of the development of the jute and cotton textile industries in India during British rule. The answer should focus on factors like raw material availability, technological advancements, capital investment, market access, and the impact of British policies on each industry. A structured approach comparing these aspects will be most effective. The answer should also highlight the differing trajectories of the two industries – jute being largely a British-managed industry and cotton textiles experiencing significant Indian entrepreneurship, albeit under colonial constraints.

Model Answer

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Introduction

The British colonial period witnessed significant, though uneven, industrial development in India. While often portrayed as de-industrializing India, the British fostered the growth of certain industries to serve their own economic interests. Two prominent examples are the jute and cotton textile industries. Jute production, concentrated in Bengal, emerged as a major industry due to its demand in the global packaging market. Simultaneously, the cotton textile industry, with roots in traditional Indian craftsmanship, underwent a transformation with the introduction of mechanized mills, primarily in western India. This answer will compare and contrast the development of these two industries, highlighting the key features that shaped their growth during the British era.

Raw Material and Geographical Concentration

Both industries were geographically concentrated based on raw material availability. The cotton textile industry initially relied on locally grown short-staple cotton, but later shifted towards importing long-staple cotton from the Americas. This shift was driven by the need for higher quality yarn for mechanized production. Major cotton textile centres emerged in Bombay (Mumbai), Ahmedabad, Surat, and Sholapur, close to cotton-growing regions and ports. Jute, on the other hand, was almost entirely dependent on the golden fibre grown in Bengal and Bihar. This led to the concentration of jute mills in Calcutta (Kolkata) and its surrounding areas, facilitating easy access to raw materials and riverine transport.

Technological Advancements and Capital Investment

The cotton textile industry saw a relatively rapid adoption of modern machinery, primarily imported from Britain. The first cotton mill was established in Bombay in 1854. By the late 19th century, numerous mills were operational, utilizing power looms and spinning frames. However, the technology remained largely dependent on British imports. Capital investment was initially driven by Indian entrepreneurs, particularly Parsis and Gujaratis, but British capital also played a role. The jute industry also adopted modern machinery, but its development was more directly controlled by British managing agencies. These agencies invested heavily in jute mills, establishing a near-monopoly over the industry. The technology was also imported from Britain, and Indian participation in ownership and management was limited.

British Policies and their Impact

British policies significantly shaped the development of both industries, though in different ways. For cotton textiles, policies initially favored the import of British manufactured cloth, leading to the decline of traditional handloom weaving. However, the growth of Indian-owned mills in the late 19th century was partly a response to this, aiming to compete with British imports. The imposition of tariffs on cotton goods in 1923, though limited, provided some protection to the Indian industry. For jute, British policies were more directly supportive of British interests. The government provided concessions and contracts to British-owned jute mills, ensuring a stable market for jute goods, particularly for packaging tea and other commodities. The discriminatory railway freight policies also favored jute over cotton goods.

Market Access and Competition

The cotton textile industry catered to both domestic and international markets. Indian mills initially focused on the lower end of the market, producing coarse cloth for domestic consumption. Gradually, they began to compete with British imports in the Indian market and also exported to other parts of Asia and Africa. The jute industry, however, was primarily export-oriented. The bulk of its production was shipped to Britain for packaging purposes, and a significant portion was re-exported to other parts of the world. This reliance on the British market made the jute industry vulnerable to fluctuations in global demand and British trade policies.

Labor Conditions and Social Impact

Both industries were characterized by harsh labor conditions. Workers, primarily drawn from rural areas, faced long working hours, low wages, and unsafe working environments. The cotton textile mills employed a large number of women and children, who were particularly vulnerable to exploitation. The jute industry also employed a significant number of laborers, many of whom were migrants from Bihar and Odisha. The growth of these industries led to the emergence of industrial working-class movements, demanding better wages and working conditions.

Feature Jute Industry Cotton Textile Industry
Raw Material Golden fibre grown in Bengal & Bihar Initially local short-staple, later imported long-staple cotton
Geographical Concentration Calcutta & surrounding areas Bombay, Ahmedabad, Surat, Sholapur
Capital Investment Primarily British managing agencies Indian entrepreneurs (Parsis, Gujaratis) & British capital
Market Orientation Export-oriented (packaging) Domestic & International
British Policy Directly supportive (concessions, contracts) Initially favored British imports, later limited protection

Conclusion

In conclusion, while both the jute and cotton textile industries experienced growth during the British period, their development trajectories differed significantly. The jute industry was largely shaped by British interests and remained heavily reliant on British capital and control. The cotton textile industry, though initially hampered by British policies, witnessed greater Indian entrepreneurship and catered to a wider range of markets. Both industries, however, were characterized by exploitative labor conditions and contributed to the emergence of industrial working-class movements. Understanding these differences is crucial for comprehending the complex legacy of British industrial policy in India.

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

Managing Agency
A system prevalent during the British period where British firms managed Indian companies, controlling their finances, operations, and often, ownership, effectively acting as intermediaries between British capital and Indian enterprise.
De-industrialization
The decline of indigenous industries in a country, often due to competition from cheaper manufactured goods from industrialized nations, as seen in India during the British colonial period.

Key Statistics

By 1900, India had over 190 cotton mills, employing approximately 250,000 workers.

Source: Report on the Economic Condition of India, 1900-1901

Jute exports constituted approximately 8% of India’s total export value in 1900.

Source: Economic History of India, 1857-1950 (R.C. Dutt)

Examples

The Tata Mills

The establishment of Tata Mills in 1877 by Jamsetji Tata was a significant example of Indian entrepreneurship in the cotton textile industry, challenging British dominance and promoting indigenous industrialization.

Frequently Asked Questions

How did the decline of the handloom industry affect the development of cotton mills?

The decline of the handloom industry, due to competition from cheaper British manufactured cloth, created a pool of unemployed weavers who provided labor for the emerging cotton mills. It also created a demand for Indian-made cloth, which the mills aimed to fulfill.

Topics Covered

HistoryEconomyIndustrial HistoryColonial IndiaTextile Industry