Decline OF Traditional Industries PDF

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We'll talk about the decline of traditional industries in this unit. The village artisan industries served as the industrial backbone of the village's well-balanced and largely self-sufficient economy. India's economy experienced a strange phenomenon during the first half of the nineteenth century, ...

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DECLINE OF TRADITIONAL INDUSTRIES INTRODUCTION

We'll talk about the decline of traditional industries in this unit. The village artisan industries served as the industrial backbone of the village's well-balanced and largely self-sufficient economy. India's economy experienced a strange phenomenon during the first half of the nineteenth century, or even up until 1880. Western countries were undergoing industrialization at the time. India went through a period of economic decline. The term "de-industrialization" has been used to describe this process.

TRADITIONAL INDUSTRIES

During the second half of the nineteenth century, India's steady growth of modern industries hastened the decline of traditional industries. Despite being universal, the decline of village handicrafts (traditional industries) was caused by social, economic, and local factors. The influx of low-cost machine-made clothing had a negative impact on the handloom industries in the villages. The village carpenters' financial situation deteriorated. He was severely harmed by the adoption of devices such as the iron plough and the iron cane-crushing machine. A portion of them were employed in the furniture industry and other related industries that sprang up in the towns. The introduction of low-cost aniline dyes had a significant impact on the village dyeing industry, resulting in the ruination of village dyers. The village artisan industry was completely destroyed by the end of the nineteenth century. The villagers' increasing use of kerosene instead of oil for lighting has had a significant impact on the village oilmen. Enamel imported from other countries, as well as metal produced by the brass and other industries in India, reduced demand for the village potter's goods. The various famines that erupted also contributed to the decline of artisan industries in villages. Poor artisans, particularly weavers, were forced to seek relief by turning to other forms of work during the famine.

With the establishment of British rule came a series of economic transitions, such as the commercialization of Indian agriculture, the rise of modern industry, the establishment of banking and insurance, and so on, all of which contributed to the gradual decline of self-sufficient village economies based on traditional Indian industries. Textile and Weaving Industry

The weaving industry began to deteriorate after 1757. The company and its men forced the weavers to sell goods at lower prices to the company by using political power. The company's agents used to book weavers at lower rates to produce goods for the company. They would pay in advance for the weaving and make a contract with the weaver to work exclusively for them. As a result, the weaver was obligated to sell his wares to the lender. The producer was not allowed to sell their goods to anyone else under the terms of the contract. As a result, the weavers were unable to sell their products on the open market at competitive prices. When things became too much to bear, some of the weavers left the loom to pursue other opportunities. The silk industry received the same treatment. The company's monopoly over these two thriving industries contributed to their decline. Meanwhile, England experienced the Industrial Revolution from 1760 to 1780. Machine-made goods started to be mass-produced in large quantities. The textile industries were centred in Manchester and Lancashire. Industrialists pressed the British government to prohibit the sale of Indian clothing in England in order to capture the Indian market. Following that, England's cotton manufacturers began exporting their products to India. By Parliament Charter, the Company was granted a monopoly trading right with India. As a result, British mill clothes have been available in Indian markets since 1793. As a result, the infiltration of low-cost British mill products into India dealt a serious blow to the weavers. At this critical juncture, the company began exporting Bengal's fine clothing to markets outside of the United Kingdom. Napoleon's Continental System, on the other hand, prohibited the import of British goods. As a result, Britain's market share in

Bengal began to dwindle. The export of Indian goods began to decline gradually in 1806. Meanwhile, the British policy of levying high import tariffs or erecting a "protection wall" against Indian industries resulted in the de-industrialization of the country. As a result of a lack of a broad market and uneven competition with foreign goods at home, Bengal's once-famous weaving and cottage industries were decimated. Bengal's jute industry was a cottage industry prior to the 19th century. During the German war (1854), when Russian supplies of raw flex and hemp were cut off, demand for Indian jute increased. Jute prices increased, resulting in the expansion and improvement of jute cultivation. In 1855, Mr. George Auckland founded the first jute mill in Serampore, Bengal. By 1913-14, there were 64 jute mills in the country, employing 216,288 men, and their total output was greater than that of Dundee. India had to contend with stiff competition in the international market after independence. In addition, the use of substitutes such as plastic bags and canvas has reduced demand for jute bags and canvas.

Other Business Sectors

Other lesser-known industries in British India coexisted with the cotton textile and jute industries. Glass, sugar, paper, cement, leather, chemical products, machine tools, mining, and tea plantations were among them. Sugar Industry: At the turn of the twentieth century, India saw the emergence of a modern sugar industry. In 1936, there were 135 sugar mills across the country, with 919,000 tonnes of sugar produced. The output was adequate to meet the needs of the domestic markets. During WWII, sugar imports were completely halted, and there were 161 sugar mills scattered across the country. Despite the fact that the sugar industry thrived under protection, the cost of production was extremely high. Sugar was primarily produced in Uttar Pradesh and Bihar. Glass Industry: Towards the end of the 18th century, India saw the establishment of a few glass factories. However, they were unable to compete with European producers. India's glass works improved in quality at the turn of the century. Its output grew as imports from other countries ceased during World War II. The main issue in India's

glass industry was a lack of raw materials as well as skilled labour. By lowering import duties on soda ash, the government indirectly aided the glass industry. Glass products were sold at a high profit at the end of the 1930s. In 1946, India had 96 glass manufacturing plants. Their production amounted to 105 lakh tonnes, which was insufficient to meet domestic demand. Paper Mills: The first mill was built on the Hooghly River in Bali in 1870, followed by mills in Titagarh, Lucknow, Poona, and Ranigunj in Asansol. In the twentieth century, more mills with modern production methods were built. The 'Mysore Paper Mill' in Bhadrabati (1939) and the 'Shibpur Paper Mill' in Hyderabad were the most notable (1942). For paper production, the factories used wood and Sabai grass from the Santal Parganas region. The paper industry was given protection by the government by being included in the protection programme. From 1925 to 1947, the reservation was in effect. On the eve of independence, India had 16 paper mills. Cement production in India began in Madras in 1904 with the manufacture of 'Portland cement.' Three more cement factories were built in 1912-13 in Katni, Porbandar, and Bundi. During World War I, there was a surge in cement demand. By 1924, 2.4 lakh tonnes of cement had been produced. Production peaked at 12 lakh tonnes over the years. The government subsidised this industry. Due to wartime demands, the Indian leather industry flourished. In 1860, Kanpur established a modern leather factory. During World War I, the demand for leather to make boot shoes increased. India was self-sufficient in leather at the time. South India was a major exporter of leather goods. The Hides Cess Enquiry Committee was established in 1930 to promote the development of leather goods in India. During WWII, the production of leather goods increased by a factor of ten. Chemical and Aluminum: It arose and flourished in the aftermath of World War I. Chemicals or products were imported prior to World War I. However, during the war years, foreign trade was severely curtailed. As a result, such industries were established in the country. Following World War I, the chemical and aluminium industries were granted temporary protection. During World War II, the chemical industry saw an increase in production.

CAUSES OF DE-INDUSTRIALISATION

India's traditional handicraft industry was destroyed beyond repair during the first half of the nineteenth century. For two reasons, the East India Company kept India largely agrarian, denying her the benefits of the Industrial Revolution. 1. obtaining low-cost agricultural raw materials for British industries; and 2. locating ready markets in India for goods manufactured in England. The decline of indigenous handicrafts in India was not aided by the growth of the machine industry. The main causes were: a. An influx of low-cost foreign machine products; and b. Foreign government pressure. The result was: a. Ruralisation of the country; b. Increasing population pressure on limited agricultural resources; c. Natives' reliance on scarce agricultural resources; d. Loss of traditional industries; e. Foreign economic dominance of India's colonial masters; and f. Acute poverty and unemployment. Agriculture is the lifeblood of the Indian economy. Handicraft industries occupied a significant position among trade goods. Clothing made of cotton and silk, ivory, wood, beads, and other materials were prized. However, when the British arrived, their policies were instrumental in destroying India's handicraft industry. As soon as the East India Company assumed control of the provinces of Bengal, Bihar, and Orissa, the process of destroying Indian handicraft industries, or de-industrialization, began. The company made the weavers produce cloth according to their specifications and under their own terms. As a result, a large number of weavers quit their jobs. It ruined the handicraft industries of cotton and silk clothing. The impact of the Industrial Revolution could be felt all over the world. India was transformed into a raw material supplier for British industries. India became a market for British products as well. Britain was able to take advantage of the Indian market thanks to its free trade policy. The slow pace of mechanical advancements, as well as the social status of workers and artisans, were other factors that contributed to de-industrialization. As a result, India's handicraft industries have stagnated.

As a result, labourers and artisans suffered greatly during the 18th and 19th centuries, resulting in widespread poverty. There is no doubt that, while India's modern industries grew, all of the profits went to Britain, resulting in the destruction of Indian handcrafts as well as widespread poverty in the country.

GROWTH OF MODERN INDUSTRIES

Between 1845 and 1875, British companies invested approximately 95 million in Indian railways. Apart from railways, British money was put into jute production, tea gardens, banks, and shipping. During this time, factories and plantations were first established. However, until 1875, progress was minimal. Until 1914, the government's policy was to promote private capital and enterprise. However, World War I ushered in a new era of industrial development for India, as the war created a demand for goods manufactured in the country. In 1916, the government was forced to appoint an Industrial Commission as a result of the situation. However, British capital owned or controlled the majority of Indian industries. The British policy effectively stifled and slowed the growth of Indian industries. The Bengal National Centre of Commerce was founded in 1887 in response to the dissatisfaction of the Indian business community. The Swadeshi Movement, which began in 1905, aided the development of Indian industries. However, British exploitation and dominance of the industrial sectors persisted until the country gained independence.

• Plantation Businesses

Tea Plantation: India is currently one of the world's leading tea producing countries. Wild indigenous tea plants were discovered in Assam in 1820. The government established an experimental tea garden in 1835. The first Indian tea company was the Assam Tea Company.

Tea plant cultivation spread rapidly in 1850, not only in Assam but also in Bengal, the Nilgiris, and Travancore. By the end of the nineteenth century, Indian tea had successfully driven Chinese tea out of the United Kingdom's markets. Tea prices fell dramatically during the early twentieth century as a result of increased production in India and Ceylon. Tea consumption in the home has also increased. In 1899, the Indian Tea Association was established with the goal of improving the quality and standardisation of Indian tea. The Indian tea industry was in a very prosperous state when World War II broke out in 1914. With Japan's entry into the war in 1941, the allies were completely cut off from tea supplies from Japan, Formosa, China, and the Dutch East Indies. Since then, the Indian tea industry has prospered due to increased demand from the United States, the United Kingdom, the Middle East, and Australia. Merchants from London founded the Assam Tea Company in 1839 as a private company. Coffee Plantations: Coffee plants were first introduced to India by Moorish traders in the 16th century, but systematic coffee cultivation did not begin until the 1830s. Since then, the industry has progressed, with Mysore, Coorg, Travancore, and Nilgiris serving as the primary plantation centres. There was a brief lull in the Indian coffee industry, which halted the transition to tea cultivation. During World War II, European coffee markets were lost to Indian coffee, and the industry was on the verge of collapse. In 1943, the Indian Coffee Expansion Act was passed, allowing coffee prices to remain reasonable. However, the Act was not strictly enforced in the coffee industry. Indigo Plantations: Indigo has been grown and used as a dye in India since ancient times. Indian indigo has been a popular export item since the 18th century. However, by the end of the 18th century, indigo trade in India was in decline, owing to increased competition from America and increased adulteration of the dye. The Company attempted to resurrect the indigo trade by bringing planters from the West to Bengal and settling them there. Up until 1850, India's industry made rapid progress, and by 1850, indigo was one of the country's most important exports. Indirect indigo cultivation was not practised by European planters. Because of stiff competition from

synthetic indigo from Germany, the Indian indigo industry has been in decline since 1897. When German dyes were cut off from allied markets during World War I, demand for Indian indigo grew again. However, after the war, German dyes reappeared, reigniting the indigo industry in India. Rubber Plantations: Rubber plantations were first introduced to India in the late 1800s. During and after World War I, rubber production grew at a breakneck pace. Rubber prices had plummeted by the end of 1921 due to overproduction. As a result, many planters in India voluntarily adopted the 'Stevenson Plan' of limiting exports. Rubber's strategic importance was fully realised during World War II. Indian rubber was not widely used in the United States until 1934. However, since then, internal consumption has increased. Rubber demand has been steadily increasing, and the Indian rubber plantation industry is unable to meet the demands of the Indian rubber manufacturing industry. In 1947, the Rubber Production and Marketing Act was passed, establishing the Indian Rubber Board to register all rubber production, set prices for various grades of rubber, and advise the government on issues relating to raw rubber export and import. To encourage domestic rubber production, the Indian government banned imports and set prices based on actual costs plus a small profit margin, keeping Indian rubber prices higher than world prices.

• Mines and other resources

In 1820, the first coal mine was established in Raniganj, West Bengal. However, the coal mining industry benefited greatly from the construction of rail lines. The Indian Railways served as both a coal carrier and a coal consumer. The opening of the Suez Canal resulted in a significant increase in coal imports. Despite competition from imported coal, however, Indian coal production has increased. During Warren Hastings' Governor Generalship, the first attempt at coal mining took place in Chhotta Nagpur. In 1843, the famous Bengal Coal Company was founded. A Colliery Control Order was passed in 1944 to regulate the operation of private capitalist-owned collieries. In 1973, the coal industry was nationalised.

Iron and steel industry: The Bengal Iron Company, founded in 1875 at Barakar, was India's first successful large-scale iron and steel enterprise. The Bengal Iron and Steel Company was founded in 1919 and produces iron, iron pipes, railway rails, and other castings. The Indian Iron and Steel Company was founded in 1919 with cutting-edge American plant and machinery. The Mysore Iron Works opened in Bhadrawati in 1937, and the Steel Corporation of Bengal began operations in 1939 with a capacity of 250,000 tonnes of steel. Before 1950, the development of India's iron and steel industry spawned a slew of auxiliary industries, including machine tools, armament and ammunition, textile and other machinery, locomotives, shipbuilding, aircraft and automobiles, bicycles, sewing machines, and a slew of other engineering goods.

INDIA AS A FEEDER ECONOMY

In today's world, underdeveloped and developing countries welcome inflows of capital, enterprise, technology, and other goods and services from developed countries to supplement domestic resources and kick-start the economic development process. The unfortunate development with India during the colonial era was that foreign capital poured into the country, but it was used by the colonial administration to expand the exploitation of Indian resources rather than to develop the colonial economy. As a result, capital inflow became yet another tool of Indian exploitation.

LET US SUM UP

After completing this unit, we learned about: • The factors that contributed to the destruction of India's traditional or indigenous industries during British colonial rule. • The difficulties and losses experienced by the weaving and textile industries during colonial rule. • During the British colonial period in India, the development of modern industries. • Aspects of the plantation, mining, and other industries that are important. • The idea of India as a feeder market....