UPSC MainsECONOMICS-PAPER-II202510 Marks150 Words
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Q4.

Answer the following questions in about 150 words each: (d) Why did the British lead to the destruction of India's traditional cotton industry? Discuss.

How to Approach

The question asks to discuss the reasons behind the destruction of India's traditional cotton industry by the British. The approach should involve outlining the various British policies and economic strategies that led to the decline of this once-flourishing sector. Start by establishing India's strong position in the global textile market before British rule. Then, discuss specific methods employed by the British, such as discriminatory tariffs, exploitation of raw materials, flooding the Indian market with machine-made goods, and direct suppression of Indian weavers. Conclude by summarizing the long-term impact of this deindustrialization on India's economy and society.

Model Answer

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Introduction

Before British colonization, India was globally renowned as the "textile capital" and the most important manufacturer in world trade, with its exquisite cotton and silk fabrics dominating international markets, particularly in Europe. The Indian cotton industry, characterized by its advanced production techniques and skilled artisans, contributed significantly to the global industrial output. However, this vibrant industry faced systematic destruction under British colonial rule, especially from the late 18th century onwards. The primary objective of the British was to transform India into a supplier of raw materials for their burgeoning industrial revolution and a captive market for their finished goods, thereby dismantling India's self-sustaining economic structure.

Systematic Destruction of India's Traditional Cotton Industry

The British employed a multi-pronged strategy to dismantle India's traditional cotton industry, driven by the needs of their own Industrial Revolution and mercantilist policies. These strategies effectively de-industrialized India, converting it from a manufacturing powerhouse into a raw material provider and a consumer market.

1. Discriminatory Tariff Policies

  • Heavy Tariffs on Indian Goods: The British imposed exorbitant import duties, often ranging from 70-80% or even outright prohibitions, on Indian finished cotton textiles entering Britain and other European markets. This made Indian goods uncompetitive and expensive.
  • Duty-Free British Goods: Conversely, machine-made textiles from Britain entered India with minimal or no duties. This created an unequal playing field, making British goods significantly cheaper than indigenous Indian products.

2. Exploitation of Raw Materials

  • Forced Raw Material Supply: India was strategically transformed into a supplier of raw cotton for British textile mills, particularly those in Lancashire. Indian weavers were often banned from buying raw cotton independently and were forced to sell to Company agents at exploitative prices.
  • Decline in Domestic Weaving: As raw cotton was diverted to Britain, the domestic supply for Indian handloom weavers dwindled, making their production more difficult and expensive.

3. Flooding the Indian Market with Machine-Made Goods

  • Cheap British Imports: The Industrial Revolution in Britain led to mass production of cotton textiles at a much lower cost. These machine-made goods flooded the Indian market, outcompeting traditionally hand-woven Indian fabrics in terms of price.
  • Loss of Demand: This influx of cheaper British textiles drastically reduced the demand for Indian handloom products, pushing millions of weavers into unemployment and poverty. Between 1800 and 1860, textile exports from India fell by 98%, while imports from Britain surged by over 6300%.

4. Active Suppression of Indigenous Industries and Artisans

  • Brutal Contracts and Control: The East India Company enforced brutal contracts on Indian weavers, often backed by military force, compelling them to sell exclusively to Company agents at dictated low prices.
  • De-skilling and Unemployment: Artisans and weavers, unable to compete or sustain their livelihoods, were forced to abandon their traditional craft and migrate to agriculture, leading to widespread de-skilling and rural underemployment. Entire weaving towns like Murshidabad and Dacca collapsed economically.

This systematic destruction was a deliberate colonial strategy aimed at benefiting the British economy, turning India into an economic appendage rather than a global manufacturing hub.

Conclusion

The destruction of India's traditional cotton industry by the British was not a natural economic decline but a deliberate, systematic policy of de-industrialization. Through discriminatory tariffs, exploitation of raw materials, flooding Indian markets with cheap machine-made goods, and direct suppression of artisans, the British transformed India from a leading global textile producer into a raw material supplier and a captive market. This process led to widespread unemployment, poverty, and a significant shift of the population back to an overburdened agricultural sector, laying the foundation for long-term economic backwardness and dependence, the scars of which were felt for decades even after independence.

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
A process of studied reduction in industrial-based activities within an economy, often seen in colonial contexts where the colonizer transforms the colonized nation into a raw material supplier and a market for its manufactured goods.
Drain of Wealth
An economic theory proposed by Dadabhai Naoroji, describing the continuous transfer of resources from India to Britain without adequate economic returns. This 'drain' included revenue from trade imbalances, salaries, pensions of British officials, and exploitation of raw materials, contributing significantly to India's impoverishment.

Key Statistics

Between 1800 and 1860, textile exports from India fell by 98%, while textile imports from Britain to India surged by over 6300%. (Source: K.N. Chaudhuri's research and the Cambridge Economic History of India)

In 1750, India accounted for approximately 25% of the world's industrial output, which drastically fell to just 2% by 1900 due to British de-industrialization policies. (Source: National Bureau of Economic Research)

Examples

Collapse of Weaving Towns

Historically prosperous weaving centers like Murshidabad in Bengal and Dacca (Dhaka) were significantly impacted. Dacca, once famous for its fine muslin, saw its textile industry decline precipitously as British policies made it impossible for local manufacturers to compete, leading to economic collapse and artisans abandoning their craft.

Impact of Unequal Tariffs

Before the British imposition of duties, Indian cotton and silk goods could be sold in the British market at prices 50-60% lower than those produced in England. To counter this, the British imposed duties of 70-80% on Indian textiles, effectively making them unsellable and protecting their own less competitive industries.

Frequently Asked Questions

What was the Calico Act?

The Calico Act of 1721 was a British parliamentary act aimed at protecting its nascent domestic textile industry by prohibiting the use of printed Indian textiles (calicoes) within Britain. This was a direct protectionist measure against competitive Indian products.

Topics Covered

Indian HistoryEconomyDeindustrialisationTextile IndustryColonial Economy