Critically examine the following statements in about 150 words each: (e) "The colonial rule opened the Indian markets for British-manufactured goods and led to 'deindustrialization' or destruction of indigenous handicraft industries."

Mechanisms of Deindustrialization

The process of deindustrialization in colonial India was not a natural economic evolution but a deliberate outcome of British policies designed to serve metropolitan interests. Several key mechanisms contributed to this destruction:

• Discriminatory Tariff Policy: The British government implemented a one-way free trade policy. While British goods entered India with minimal or no tariffs, Indian exports to Britain faced high protective duties, sometimes as high as 70-80% on textiles. This rendered Indian products uncompetitive in European markets.
• Influx of Cheap Machine-Made Goods: The Industrial Revolution in Britain led to the mass production of goods, particularly textiles, at significantly lower costs. These machine-made products flooded the Indian market, displacing the more expensive, handcrafted Indian goods. The introduction of railways further facilitated the penetration of British goods into remote Indian villages.
• Loss of Patronage: The decline of Indian princely states and aristocratic courts, which were primary patrons of skilled artisans and luxurious handicrafts, severely impacted demand. The new colonial administration and European officials often preferred imported British goods.
• Exploitation of Raw Materials: India was strategically converted into a supplier of raw materials like raw cotton, indigo, and silk for British factories. This meant that the raw materials that once fed indigenous industries were now diverted for export to Britain.
• Lack of State Support: Unlike industrializing nations in Europe, the colonial government provided no protective tariffs or subsidies to Indian industries, leaving them exposed to fierce competition.

Impact on Indigenous Industries and Economy

The consequences of these policies were profound and detrimental to India's economy and society:

• Destruction of Handicrafts: Industries like cotton weaving, silk production, metalware, and pottery, which were globally renowned for their quality and craftsmanship, suffered a severe blow. For instance, India's share of global industrial output declined from approximately 25% in 1750 to 2% in 1900.
• Increased Pressure on Agriculture: Millions of displaced artisans, unable to find alternative employment, were forced back into agriculture, increasing the already heavy burden on the land. This led to overcrowding, disguised unemployment, and further impoverishment of the peasantry. By the late 19th century, a larger proportion of India's population (over three-fourths) became dependent on agriculture.
• Ruralization and Poverty: The destruction of urban craft centers contributed to the ruralization of the economy and widespread poverty, as traditional urban-rural economic linkages were severed.
• Loss of Wealth: The economic policies also contributed to the drain of wealth from India to Britain, as India exported valuable raw materials and received manufactured goods in return, often at exploitative terms.