UPSC MainsECONOMICS-PAPER-II202415 Marks150 Words
Q8.

Explain the problems faced by the Jute industry during pre-independence India. Why the problem aggravated after partition of the country?

How to Approach

This question requires a historical understanding of the jute industry in India, both before and after independence. The answer should be structured chronologically. First, detail the problems faced during the pre-independence era (British colonial policies, competition from other products, etc.). Then, explain how partition exacerbated these issues (loss of raw material sources, disruption of transport, communal tensions). Focus on economic and political factors. A concise and factual approach is key, avoiding overly descriptive narratives.

Model Answer

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Introduction

The jute industry, historically significant to the Indian economy, particularly Bengal, faced numerous challenges even before 1947. Rooted in the region’s agro-climatic conditions, jute production became a cornerstone of British industrial interests. However, colonial policies, coupled with inherent structural weaknesses, created a precarious situation for Indian jute mills. The partition of India in 1947 dramatically worsened these existing problems, fundamentally altering the industry’s landscape and creating new obstacles to its growth and sustainability. This answer will explore these pre- and post-partition challenges.

Problems Faced by the Jute Industry During Pre-Independence India

Before 1947, the jute industry in India was heavily influenced by British economic policies. Several key problems plagued the sector:

  • Dominance of Foreign Capital: The industry was largely controlled by British firms like Andrew Yule & Co. and Birla Jute Mills, who prioritized profits over the welfare of Indian workers and the industry’s long-term development.
  • Raw Material Constraints: While Bengal was a major producer of raw jute (golden fiber), the British often favored importing cheaper jute from Burma and East Bengal (later East Pakistan), impacting local farmers and mills.
  • Limited Technological Advancement: Indian jute mills lagged behind their British counterparts in adopting modern machinery and technology, leading to lower productivity and quality.
  • Exploitation of Labour: Jute mill workers faced harsh working conditions, low wages, and limited rights. This led to frequent strikes and unrest, disrupting production.
  • Competition from Alternatives: The rise of alternative packaging materials like cotton and paper posed a threat to the demand for jute goods.
  • Discriminatory Trade Policies: British import duties and trade regulations favored British jute manufacturers, hindering the export of Indian jute products.

Aggravation of Problems After Partition

The partition of India in 1947 had a devastating impact on the jute industry, significantly worsening the pre-existing problems:

  • Loss of Raw Jute Growing Areas: The most significant impact was the loss of approximately 75% of India’s jute growing areas to East Pakistan (now Bangladesh). This created a severe raw material shortage for Indian mills. (Statistic - as of 1947, approximately 75% of jute growing areas went to East Pakistan)
  • Disruption of Transport and Communication: Partition disrupted the existing transport and communication networks, making it difficult to transport raw jute from the remaining Indian areas to the mills and finished goods to markets.
  • Communal Tensions and Migration: Large-scale communal violence and migration led to a loss of skilled labor and disrupted the industrial workforce.
  • Increased Costs: The cost of raw jute soared due to scarcity, increasing production costs for Indian mills and making them less competitive in the international market.
  • Political Instability: The political instability following partition created uncertainty and hampered investment in the industry.
  • Smuggling: Jute smuggling to East Pakistan increased, further exacerbating the raw material shortage in India.

The Indian government responded with measures like the Jute Procurement and Distribution Scheme (1948) to regulate the supply of raw jute and support the industry. However, these measures were often insufficient to address the scale of the problem. The industry struggled for decades to recover from the shock of partition, and its long-term viability was seriously threatened.

Problem Pre-Independence Post-Independence (Post-Partition)
Raw Material Availability Limited by British preference for Burmese jute Severe shortage due to loss of major growing areas to East Pakistan
Control Dominated by British firms Indian firms faced raw material scarcity and increased costs
Labor Exploitation, strikes Disruption due to migration and communal tensions

Conclusion

The jute industry in pre-independence India was already burdened by colonial exploitation and structural weaknesses. The partition of 1947 acted as a catastrophic shock, fundamentally altering the industry’s geography and exacerbating existing problems. The loss of raw material sources, coupled with disruptions to transport and labor, created a crisis that took decades to address. While government interventions attempted to mitigate the damage, the industry’s recovery was slow and incomplete, highlighting the profound and lasting impact of partition on the Indian economy.

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

Golden Fiber
Jute is often referred to as the "golden fiber" due to its color and luster, as well as its economic importance.
Partition
The partition of India in 1947 refers to the division of British India into two independent dominion states: India and Pakistan.

Key Statistics

In 1946, India produced approximately 68% of the world’s jute, but after partition, this share drastically reduced.

Source: Report on the Jute Industry, Government of India, 1955 (Knowledge Cutoff)

The share of jute goods in India’s total export earnings declined from around 20% in 1947 to less than 5% by the 1960s.

Source: Economic History of India, 1857-1966, Dharma Kumar (Knowledge Cutoff)

Examples

Andrew Yule & Co.

A prominent British firm that dominated the Indian jute industry for decades, controlling a significant share of production and trade.

Frequently Asked Questions

What was the impact of partition on jute workers?

Partition led to displacement, loss of livelihoods, and increased vulnerability for jute workers, particularly those who migrated across the newly formed borders.

Topics Covered

HistoryEconomyIndustryIndustrial HistoryTextile IndustryPartition Impact