UPSC MainsECONOMICS-PAPER-II202210 Marks150 Words
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Q1.

Outline the factors that caused decline of handicrafts during British rule in India.

How to Approach

This question requires a nuanced understanding of the economic policies implemented during British rule and their impact on Indian handicrafts. The answer should focus on both direct policies designed to suppress Indian industries and indirect consequences of British economic policies. A chronological approach, highlighting key phases and policies, is recommended. Structure the answer by categorizing the factors into political, economic, and technological aspects. Mention specific examples of affected crafts and regions.

Model Answer

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Introduction

Prior to British rule, India possessed a globally renowned handicraft industry, celebrated for its high quality and intricate designs. These industries contributed significantly to India’s economic prosperity and foreign trade. However, the arrival of the British East India Company marked a turning point, initiating a systematic decline of these traditional crafts. This decline wasn’t a sudden event but a gradual process driven by a complex interplay of factors, ranging from discriminatory policies to the introduction of modern industrial production, transforming India from an exporter to an importer of manufactured goods.

Political and Administrative Factors

The British East India Company and later the British Crown actively pursued policies that undermined Indian handicrafts:

  • Discriminatory Tariffs: Heavy tariffs were imposed on Indian exports to Britain, while British goods were allowed into India with minimal or no duties. This made Indian products uncompetitive in international markets.
  • Destruction of Local Industries: The Company deliberately destroyed thriving Indian industries, like textiles, to create a market for British manufactured goods. Accounts from the 18th and 19th centuries detail the breaking of looms and the forced unemployment of weavers.
  • Grant of Monopolies: The Company granted monopolies to its own agents and favored merchants, stifling competition and hindering the growth of indigenous industries.
  • Political Instability: Frequent wars and political instability under British rule disrupted trade routes and supply chains, impacting the handicraft sector.

Economic Factors

British economic policies fundamentally altered the economic landscape of India, leading to the decline of handicrafts:

  • De-industrialization: The influx of cheaper, machine-made British goods flooded the Indian market, displacing traditional artisans. This process of de-industrialization led to widespread unemployment and poverty.
  • Land Revenue Policies: High land revenue demands forced artisans to abandon their crafts and take up agriculture to meet revenue obligations. The Permanent Settlement (1793) and Ryotwari System exacerbated this trend.
  • Commercialization of Agriculture: The emphasis on cash crops like indigo and opium, driven by British demand, diverted resources and labor away from handicrafts.
  • Drain of Wealth: The systematic transfer of wealth from India to Britain, through salaries, pensions, and profits, reduced the capital available for investment in Indian industries. Dadabhai Naoroji’s ‘Drain Theory’ highlighted this aspect.

Technological Factors

The introduction of modern technology by the British, while representing progress, had a detrimental effect on Indian handicrafts:

  • Mechanized Production: The Industrial Revolution in Britain led to the mass production of goods at lower costs. Indian artisans, using traditional methods, could not compete with this efficiency.
  • Lack of Modernization: Indian artisans lacked access to modern technology and capital to upgrade their production methods. The British actively discouraged the development of modern industries in India to protect their own interests.
  • Decline in Skill Transmission: As demand for traditional crafts declined, the traditional apprenticeship system suffered, leading to a loss of skills and knowledge.

Regional Variations: The impact of these factors varied across regions. For example, the textile industry in Bengal and Gujarat suffered significantly, while some crafts like carpet weaving in Kashmir were relatively less affected due to continued demand from the elite.

Craft Region Affected Impact
Textiles Bengal, Gujarat, Madras Severe decline due to competition from British textiles
Metalwork Bihar, Orissa Reduced demand due to cheaper British metal goods
Shipbuilding Coastal regions (Bombay, Bengal) Complete collapse due to discriminatory policies

Conclusion

The decline of handicrafts during British rule was a multifaceted process driven by a combination of exploitative political policies, disruptive economic changes, and the impact of technological advancements. This decline had devastating consequences for the Indian economy, leading to widespread unemployment, poverty, and the erosion of traditional skills. The legacy of this de-industrialization continues to shape India’s economic landscape even today, highlighting the need for policies that promote and preserve traditional industries alongside modern manufacturing.

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.
Drain of Wealth
The economic theory, popularized by Dadabhai Naoroji, which argues that Britain systematically drained wealth from India through various means, hindering its economic development.

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: Historical data from the British Library

India’s share of world manufacturing output declined from 24.5% in 1750 to 2.2% in 1900.

Source: Angus Maddison, Historical Statistics: 1000-2000 (2001)

Examples

Dacca Muslin

Dacca muslin, once renowned worldwide for its fineness, suffered a catastrophic decline due to competition from British textiles. The weavers of Dacca were forced into poverty and many abandoned their craft.

Frequently Asked Questions

Was the decline of handicrafts solely due to British policies?

While British policies were the primary driver, internal factors like a lack of innovation and limited access to capital also contributed to the decline, though to a lesser extent.

Topics Covered

HistoryEconomyColonial HistoryIndustrial PolicyEconomic Impact