UPSC MainsECONOMICS-PAPER-II202315 Marks
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Q14.

Explain the development of cotton industry in India during pre-Independence era. Also point out its growth constraints.

How to Approach

This question requires a historical understanding of the cotton industry in India, tracing its evolution from pre-British times to independence. The answer should be structured chronologically, covering the indigenous industry, the impact of British policies, the rise of the mill sector, and the constraints faced. Focus on the economic, political, and social factors that shaped the industry. Mention key acts and policies. A balanced approach acknowledging both positive and negative aspects is crucial.

Model Answer

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Introduction

The cotton industry holds a significant place in India’s economic history, deeply intertwined with its socio-political landscape. Prior to British rule, India was renowned globally for its high-quality cotton textiles, particularly muslin and calico. This indigenous industry flourished for centuries, contributing significantly to the country’s wealth and trade. However, the arrival of the British East India Company dramatically altered the trajectory of this industry, leading to its decline and eventual restructuring. This answer will explore the development of the cotton industry in India during the pre-Independence era, highlighting its growth constraints.

Early Development: The Indigenous Cotton Industry

Before the 18th century, India possessed a highly developed cotton textile industry. Regions like Bengal, Gujarat, and the Coromandel Coast were centers of cotton production and weaving. Indian cotton textiles were highly sought after in international markets, including Europe, the Middle East, and Southeast Asia. The industry was characterized by:

  • Decentralized Production: Weaving was largely a cottage industry, with families engaged in spinning and weaving activities.
  • High Quality: Indian cotton textiles were known for their fine quality, intricate designs, and durability. Muslin, a particularly fine cotton fabric, was highly prized.
  • Export Orientation: A significant portion of the production was exported, earning substantial revenue for Indian rulers and merchants.

The Impact of British Rule (18th & 19th Centuries)

The British East India Company’s policies had a devastating impact on the indigenous cotton industry. Initially, the Company focused on trade, but gradually shifted towards controlling production and exploiting resources.

  • De-industrialization: British policies actively undermined the Indian textile industry. High tariffs were imposed on Indian cotton textiles entering Britain, while British textiles were allowed duty-free access to India. This led to a decline in Indian exports and the closure of many weaving workshops.
  • Destruction of Traditional Crafts: The influx of cheaper, machine-made British textiles flooded the Indian market, displacing traditional artisans and weavers.
  • Raw Cotton Export: The British prioritized the export of raw cotton from India to feed the mills in Britain, rather than promoting value addition within India.
  • The Permanent Settlement (1793): This land revenue system, while intended to streamline revenue collection, often led to landlessness among weavers and artisans, further disrupting the industry.

The Rise of the Mill Sector (Mid-19th Century Onwards)

The mid-19th century witnessed the emergence of the cotton mill sector in India, largely driven by Indian entrepreneurs. This was partly a response to the decline of the handloom industry and the availability of British capital and technology.

  • First Textile Mills: The first cotton mill was established in Bombay (Mumbai) in 1854 by Cowasjee Nanabhoy Davar. This marked the beginning of the modern textile industry in India.
  • Growth of Bombay and Ahmedabad: Bombay and Ahmedabad quickly became major centers of cotton mill production, benefiting from access to raw cotton from the surrounding regions and port facilities.
  • Swadeshi Movement (1905-1911): The Swadeshi movement provided a significant boost to the Indian textile industry, as it encouraged the use of locally made goods and boycott of foreign products.
  • World War I: The war created a demand for Indian textiles, as British mills were preoccupied with war production. This led to further expansion of the Indian mill sector.

Growth Constraints

Despite the growth of the mill sector, the Indian cotton industry faced several constraints during the pre-Independence era:

  • Dependence on Raw Cotton: The industry remained heavily reliant on raw cotton, which was often subject to price fluctuations and supply disruptions.
  • Limited Capital Investment: Indian entrepreneurs often lacked access to sufficient capital for large-scale investment in modern machinery and technology.
  • Competition from British Mills: Even after the rise of the mill sector, Indian mills continued to face stiff competition from British mills, which benefited from economies of scale and government support.
  • Lack of Technological Advancement: Indian mills were often slower to adopt new technologies compared to their British counterparts.
  • Labor Issues: Poor working conditions, low wages, and lack of labor rights were prevalent in the mill sector, leading to frequent strikes and unrest.
Phase Characteristics Key Impacts
Pre-British (Before 1757) Decentralized, Cottage Industry, High Quality, Export-Oriented Global demand for Indian textiles, Economic prosperity
British Colonial (1757-1857) De-industrialization, Raw Cotton Export, High Tariffs on Indian Textiles Decline of handloom industry, Economic exploitation
Mill Sector Emergence (1854-1947) Rise of Bombay & Ahmedabad, Swadeshi Movement boost, WWI demand Growth of modern textile industry, Increased competition

Conclusion

The development of the cotton industry in India during the pre-Independence era was a complex process marked by both prosperity and decline. While India once dominated the global cotton textile market, British colonial policies led to its de-industrialization and exploitation. The emergence of the mill sector offered a degree of revival, but the industry continued to face significant constraints. The legacy of this period continues to shape the Indian textile industry today, highlighting the importance of promoting domestic manufacturing, technological innovation, and fair labor practices.

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 social and economic change where an industrial society transforms into a post-industrial society, often involving a decline in manufacturing and a rise in the service sector. In the context of India, it refers to the decline of the traditional handicraft and textile industries due to British policies.
Permanent Settlement
An agreement between the British East India Company and landholders in Bengal in 1793. It fixed land revenue at a permanent amount, leading to exploitation of farmers and disruption of traditional economic structures, impacting the cotton industry indirectly.

Key Statistics

In 1815, the value of Indian cotton exports was £1.4 million. By 1835, it had fallen to £0.3 million due to British competition. (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 over 200 cotton mills, employing approximately 250,000 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 Dhaka Muslin

Dhaka muslin, renowned for its exceptional fineness, was a major export commodity. British policies led to the decline of Dhaka’s muslin industry, forcing weavers into poverty and transforming the city from a thriving textile center to a shadow of its former self.

Frequently Asked Questions

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

The Swadeshi movement (1905-1911) encouraged Indians to boycott foreign goods, particularly British textiles, and promote the use of locally made products. This led to increased demand for Indian cotton textiles and provided a significant boost to the Indian mill sector.

Topics Covered

EconomyHistoryTextile IndustryIndustrial HistoryEconomic Development