Destruction Of Indian Industries

Before the colonisation, India had attained a high level of sophistication in creating luxury goods in the form of handicrafts. Cotton, silk, and ivory were among the luxury products with a substantial market in Europe. With the establishment of the British East India Company and the collection of revenue rights, it ceased importing gold and silver, which had previously been used as payment for Indian exports. From 1780 to 1860, India’s economy experienced a dynamic shift from processed goods exporter to raw materials and buyer of manufactured goods. The export of fine cotton silk was replaced by raw resources such as opium, indigo, and raw cotton. The British cotton mill businesses even started lobbying the government for import tariffs to India. The infrastructure built by the British colonial authority, such as judicial systems, railways, and telegraphs, is geared toward resource extraction, rendering industrial expansion stagnant and agriculture unable to keep up with population increase. In 1900, India’s industrial output had fallen to 2% of global output. Britain has also surpassed India as the world’s largest textile manufacturer.

Causes of De-Industrialisation:

Foreign rule and its negative consequences

The installation of British rule impacted the existence of handicrafts, both directly and indirectly. Following the virtual abolition of demand for the industry due to the collapse of aristocratic courts, the industry hoped for a new source of demand from European officials and visitors, as well as from ‘baboos’ and black Indian’sahibs.’ Of course, European bureaucrats preferred imported goods.

Intrinsic causes

Some suggest that the loss of the handicraft industry can also be attributed to flaws in the industrial system.

For starters, no attempts were made to identify potential consumers for items. Foreigners controlled India’s international trade. This meant that Indian artists and manufacturers were at the whim of foreign merchants regarding sales or demand propagation in international markets.

Second, the trade organization in India was unquestionably poor. Finally, she lacked a class of industrial entrepreneurs.

Competing with machine-made products

The technological revolution that accelerated during the nineteenth century in the aftermath of the industrial revolution expedited the collapse of traditional handicrafts. Cotton is synonymous with the industrial revolution in England. In India, whosoever says ‘de-industrialization’ thinks textile. In Europe, the introduction of the power-loom concluded the downfall of this significant sector. 

The decline of court culture

The royal courts and urban elites were the major sources, if not the only source, of demand for these craftsmen’s products. With the collapse of the royal court, one source of demand for these crafts’ products vanished. However, this was partially offset by the class of nobility and urban aristocracy, who supported the arts and handicrafts. 

Tariff policy 

Furthermore, R. C. Dutt saw the British Government’s tariff policy as the primary factor or “first among equals” in the decline of handicrafts. This tariff strategy became known as ‘one­way free trade’ and preached that what was good for England was also good for India. England implemented a protection strategy by introducing import levies to place her industrial industry on a solid basis at home. On the other hand, it preached the gospel of free trade to India.

Furthermore, a scarcity of capital goods and a lack of skilled labour stifled India’s industrial growth. Despite the fact that they operated as major depressants, colonial authority appeared to be the most significant impediment to India’s desire for industrialisation.

Above all, the British Government’s involvement in India’s industrialisation was negligible before 1916, that is, before the foundation of the Industrial Commission. The imperial power’s industrial programme may be summarized as “too little, too late.”

Impact of de-industrialisation 

The industrialisation of a nation refers to the inclusion of the production industry and agricultural industry to grow the country. A country dependent only on agriculture cannot develop as rapidly as an advanced economic industry. In reality, these are the foundations responsible for strengthening and preserving the country’s economy’s stability. Despite the fact that industrialisation has its drawbacks regarding the environment and people’s health, the country remains undeveloped without adequate industrialisation. Its technical advancement supplies all of the required aspects for developing the country’s economy. Industrialisation in India began in 1854 with the establishment of the first textile mill in Bombay. Ever since, India always has advanced in its industrial system, making it a developing country from an economic standpoint.

The economy is vital to the development of every country on the planet. The economy determines and distinguishes between developed and developing countries. The industrialised world’s economy is mostly based on the industrial sector, whereas the undeveloped world’s economy is primarily based on agriculture. Industrialisation has played an important part in reviving the economic standing of many countries throughout the world, and a similar transition happened with industrialisation in India.

Conclusion

India’s industrial production plummeted to 2% of world output in 1900. Raw resources like opium, indigo and raw cotton supplanted the export of exquisite cotton silk. The United Kingdom has overtaken India as the world’s greatest textile producer. Some argue that defects in the industrial system are also to blame for the decline of handicrafts. India’s industrial progress was hindered by a shortage of capital goods and trained labor. According to R. C. Dutt, the British government’s tariff policy was the key cause, or “first among equals,” in the fall of handicrafts. The industrial policy of the imperial authority may be summarised as “too little, too late.” The cotton textile sector in India has been hurt the worst by deindustrialisation. The industrial sector was highly underdeveloped, with infrastructure that was rapidly decaying. A significant cause of underdevelopment was thought to be a lack of government support. The industries’ structure and ownership concentration were in the hands of a few people. Before 1800, India’s cotton exports were the largest in the world.