UPSC MainsHISTORY-PAPER-I202415 Marks
Q23.

Examine the process of urbanization caused by the establishment of European trading companies in India.

How to Approach

This question requires a nuanced understanding of the impact of European trading companies – primarily the British East India Company – on the urban landscape of India. The answer should trace the evolution of urban centers from pre-colonial times, highlighting how the companies’ commercial activities led to the growth of new cities (port cities) and the decline of traditional ones. Focus should be on the economic, administrative, and demographic changes that fueled urbanization. A chronological structure, examining phases of company rule, is recommended.

Model Answer

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Introduction

Urbanization in India has a long history, dating back to the Indus Valley Civilization. However, the arrival of European trading companies in the 17th century initiated a new phase of urban development, profoundly altering the existing patterns. Initially focused on establishing trading posts, these companies, particularly the British East India Company, gradually expanded their influence, leading to the emergence of ‘company towns’ and a shift in the economic and administrative functions of existing urban centers. This process wasn’t merely about population growth; it involved a fundamental restructuring of urban spaces and social hierarchies, driven by colonial economic imperatives.

Early Phase: Establishment of Trading Posts (17th-18th Centuries)

The initial phase of European involvement saw the establishment of fortified trading posts, or ‘factories’, along the Indian coastline. These were primarily concentrated in regions with access to valuable commodities like textiles, spices, and indigo.

  • Bombay (Mumbai): Transferred to the British in 1661 as part of Catherine of Braganza’s dowry, Bombay rapidly transformed from a cluster of islands into a major port city. The Company encouraged migration, attracting diverse communities like Parsis, Gujaratis, and Marathas.
  • Madras (Chennai): Founded in 1639, Madras became another crucial trading center, particularly for textiles. The Fort St. George served as the administrative and military hub.
  • Calcutta (Kolkata): Established in 1690, Calcutta rose to prominence in the 18th century, becoming the de facto capital of British India. Its strategic location on the Hooghly River facilitated trade with the hinterland.

These early settlements were characterized by a dual structure: a fortified European enclave and a surrounding native town. The Company’s focus was on securing trade and establishing control over key commodities.

Expansion and Consolidation (18th-19th Centuries)

The 18th century witnessed the East India Company’s increasing political and military dominance. This led to a more systematic urbanization process, driven by administrative needs and the exploitation of Indian resources.

  • Growth of Port Cities: The three presidency cities – Bombay, Madras, and Calcutta – experienced significant population growth. Bombay’s population increased from around 10,000 in 1661 to over 1.4 million by 1901 (Source: Census of India, 1901 – knowledge cutoff).
  • Decline of Traditional Centers: Cities like Surat, which had flourished as independent trading centers, declined as trade shifted to the Company’s ports. The Company’s monopoly policies and discriminatory tariffs hampered the growth of indigenous merchants and industries.
  • Cantonment Towns: The establishment of military cantonments, like Barrackpore and Mhow, led to the growth of new urban settlements catering to the needs of the British army.
  • Railway Network: The introduction of railways in the mid-19th century further accelerated urbanization, connecting inland areas to port cities and facilitating the movement of goods and people.

Impact on Urban Morphology and Society

The European companies’ presence significantly altered the physical and social landscape of Indian cities.

  • Segregation: European and Indian populations were often segregated, with Europeans residing in well-planned, sanitary areas while Indians were confined to overcrowded, unsanitary neighborhoods.
  • Infrastructure Development: The Company invested in infrastructure like roads, railways, and ports, primarily to facilitate trade and administrative control. However, this development was often uneven and prioritized European interests.
  • New Professions: The rise of a colonial economy created new professions like clerks, lawyers, and teachers, leading to the emergence of a new urban middle class.
  • Social Changes: Western education and ideas introduced by the Company led to social reforms and the emergence of a modern intelligentsia.

Later Developments & Industrialization (Late 19th - Early 20th Centuries)

The late 19th and early 20th centuries saw the emergence of industrial cities, though this was a slower process compared to Europe.

  • Jamshedpur: Founded in 1907 by Jamshedji Tata, Jamshedpur became a major industrial center, driven by the establishment of the Tata Iron and Steel Company (TISCO).
  • Kanpur & Ahmedabad: These cities experienced growth due to the development of textile mills.

However, industrial urbanization remained limited, and the majority of the Indian population continued to live in rural areas.

City Pre-Company Role Role under Company Rule
Surat Major independent trading center Declined due to Company monopoly
Bombay Small fishing village Major port city and commercial hub
Calcutta Small settlement Capital of British India, major trading center

Conclusion

The establishment of European trading companies fundamentally reshaped the urban landscape of India. While fostering the growth of port cities and facilitating infrastructure development, this process also led to the decline of traditional urban centers and created social and spatial inequalities. The urbanization driven by colonial economic policies was not organic but rather a consequence of external forces, leaving a lasting impact on the structure and character of Indian cities. Understanding this historical context is crucial for addressing contemporary urban challenges 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

Company Towns
Urban settlements established and largely controlled by a company, typically for the purpose of exploiting natural resources or providing services to company employees.
De-industrialization
The decline of indigenous industries, particularly handloom weaving, due to competition from cheaper, machine-made goods imported from Britain.

Key Statistics

In 1901, approximately 11.1% of the Indian population lived in urban areas. This figure increased to 17.3% in 1951 (Source: Census of India Reports).

Source: Census of India Reports

The share of the world’s GDP contributed by India declined from 22.6% in 1700 to 2.6% in 1900, largely attributed to de-industrialization under British rule (Source: Angus Maddison, Historical Statistics).

Source: Angus Maddison, Historical Statistics

Examples

The Case of Dhaka

Dhaka, once a major Mughal capital known for its muslin production, experienced a decline under British rule. The Company’s policies favored the import of British textiles, leading to the decline of the local muslin industry and the city’s economic fortunes.

Frequently Asked Questions

How did the East India Company’s land revenue policies affect urbanization?

The Company’s land revenue policies, such as the Permanent Settlement, led to the dispossession of many farmers and artisans, forcing them to migrate to urban areas in search of employment, contributing to urban growth but also creating a surplus labor force.

Topics Covered

Modern HistoryUrban HistoryEuropean CompaniesUrbanizationColonialismTrade