INDUSTRIAL SECTOR ON THE EVE OF INDEPENDENCE IN INDIA

·               INDUSTRIAL SECTOR ON THE EVE OF INDEPENDENCE IN INDIA
 INDIAN ECONOMY ON THE EVE OF INDEPENDENCE 2
INDIAN ECONOMIC DEVELOPMENT

• WHAT WE HAVE COVERED

1. COLONIAL EXPLOITATION OF THE INDIAN ECONOMY UNDER BRITISH RULE
2. FEATURES OF THE INDIAN ECONOMY ON THE EVE OD INDEPENDENCE
3. AGRICULTURE SECTOR ON THE EVE OF INDEPENDENCE

• INDUSTRIAL SECTOR ON THE EVE OF INDEPENDENCE
• SYSTEMATIC DE INDUSTRIALIZATION IS THE TERM WHICH EXPLAINS THE STATUS OF INDUSTRIAL SECTOR DURING THE BRITISH RULE
• IT MEANS TWO THINGS:-

1. DECAY OF WORLD FAMOUS TRADITIONAL HANDICRAFT INDUSTRY OWING TO DISCRIMINATORY POLICIES OF THE BRITISH GOVERNMENT AND
2. BLEAK GROWTH OF MODERN INDUSTRY OWING TO LACK OF INVESTMENT OPPORTUNITIES

• MOTIVE BEHIND THE SYSTEMATIC DE-INDUSTRIALIZATION DURING THE BRITISH RULE IN INDIA

1. THE BRITISH GOVERNMENT CONVERTED THE INDIAN ECONOMY INTO A COLONIAL MARKET FOR THE BRITISH INDUSTRIAL GOODS
2. TO EXPLOIT INDIA’S WEALTH OF RAW MATERIALS AND PRIMARY PRODUCTS LIKE COTTON AND JUTE. DONE TO FULFILL THE REQUIREMENT OF INDUSTRIAL INPUTS IN THE WAKE OF INDUSTRIAL REVOLUTION IN BRITAIN.
3. TO EXPLOIT INDIA AS POTENTIAL MARKET FOR THE INDUSTRIAL PRODUCTS OF BRITAIN.

·         TWIN MOTIVES RESULTED IN TWO CONSEQUENCES:

1. DESTRUCTION OF HANDICRAFT IN INDIA
2. IMPETUS TO THE PROCESS OF INDUSTRIALIZATION IN BRITAIN

• DECAY OF HANDICRAFT

1. PRIOR TO THE BRITISH RULE,HANDICRAFT IN INDIA ENJOYED THE WORLDWIDE REPUTATION OF THE EXCELLENCE AND QUALITY
2. BUT BRITISH RAJ PAVED THE WAY OF THEIR DESTRUCTION
3. OWING TO THEIR DISCRIMINATORY ECONOMIC AND POLITICAL POLICIES PURSUED BY THE BRITISH GOVERNMENT

• REASONS
• DISCRIMINATORY TARIFF POLICY OF THE STATE:-

1. COINCIDED WITH INDUSTRIAL REVOLUTION
2. FOUND INDIA AS SOURCE OF RAW MATERIAL AS WELL AS THE BEST MARKET FOR THEIR INDUSTRIAL PRODUCT
3. ACCORDINGLY IT FOLLOWED DISCRIMINATORY TARIFF POLICY.

1. TARIFF FREE EXPORT OF RAW MATERIALS FROM INDIA
2. TARIFF FREE IMPORT OF BRITISH INDUSTRIAL PRODUCTS INTO INDIA
3. HEAVY EXPORT DUTY ON EXPORT OF INDIAN HANDICRAFT PRODUCTS

·         CONSEQUENTLY BRITISH PRODUCTS STARTED GAINING THE ENTRY IN INDIAN MARKET AND INDIAN HANDICRAFT DELAYED BECAUSE IT WAS NOT ABLE TO COMPETE IN DOMESTIC  AS WELL FOREIGN MARKET

• DISAPPEARANCE OF PRINCELY COURTS:-

1. PRIOR TO THE BRITISH RULE,NAWABS,RAJAS,PRINCE AND EMPEROR RULES DIFFERENT PARTS OF THE COUNTRY
2. USED TO PATRONIZE THE HANDICRAFT INDUSTRY BECAUSE OF WHICH THE INDIAN HANDICRAFT INDUSTRY HANDICRAFT PRODUCTS INDUSTRY HAD ACQUIRED INTERNATIONAL REPUTATION
3. THE BEGINNING OF THE BRITISH RULE IMPLIED THE END OF PRINCELY COURTS.
4. DECAY OF HANDICRAFT INDUSTRY

• COMPETITION FROM MACHINE MADE PRODUCTS:

1. MACHINE MADE PRODUCTS FROM BRITAIN WERE LOW COST PRODUCTS
2. GAVE A STIFF COMPETITION TO THE HANDICRAFT PRODUCTS IN INDIA
3. ALSO EXCELLED INDIAN HANDICRAFT PRODUCTS IN PRECISION AND QUALITY
4. COMPETITION FORCED THE INDIAN HANDICRAFTS MEN TO SHUT DOWN THEIR ENTERPRISES

• NEW PATTERN OF DEMAND:-

1. DUE TO INFLUENCE OF BRITISH CULTURE,A NEW CLASS EMERGED IN INDIA WHICH WAS KEEN TO ADOPT THE WESTERN LIFESTYLE
2. CHANGED THE PATTERN OF DEMAND AGAINST THE INDIAN PRODUCTS AND IN FAVOR OF BRITISH PRODUCTS

• INTRODUCTION OF RAILWAYS IN INDIA:-

1. WITH THE INTRODUCTION OF RAILWAYS,SIZE OF THE MARKET FOR THE LOW COST BRITISH PRODUCTS TENDED TO EXPAND
2. SHRINKAGE OF INDIAN PRODUCTS DUE TO HIGH COST

·         CONSEQUENCES :-

1. CONVERTED INDIAN ECONOMY INTO A COLONIAL MARKET FOR THE BRITISH INDUSTRIAL GOODS
2. EXPLOITATION OF THE INDIAN MARKET :-
3. SOURCE OF RAW MATERIAL
4. DESTINATION OF DEMAND FOR THE BRITISH PRODUCTS

• BLEAK ( NOTIONAL GROWTH OF MODERN INDUSTRY)

1. BLEAK GROWTH AND ONLY IN SECOND HALF OF THE 19 TH CENTURY THAT THE MODERN INDUSTRY SHOWED ITS EMERGENCE
2. ESTABLISHMENT OF THE SOME INDUSTRIES BY PRIVATE ENTREPRENEUR
3. FOR EXAMPLE TATA AND IRON AND STEEL COMPANY FOUNDED IN 1907 AND SUGAR,CEMENT AND PAPER INDUSTRIES WERE SET UP DUE TO WORLD WIDE SCARCITY OF INDUSTRIAL GOODS BECAUSE OF WORLD WAR 1 AND II
4. PARTICIPATION OF THE SATE WAS VERY LIMITED. IT CONFINED TO THE AREA WHICH WOULD BENEFIT THE BRITISH IN INCREASING THE SIZE OF MARKET FOR THE BRITISH PRODUCTS IN INDIA:

1. RAILWAYS
2. POWER GENERATION
3. DEVELOPMENT OF PORTS
4. MEANS OF COMMUNICATION

• CORE CHARACTERISTICS OF INDUSTRIAL SECTOR ON THE EVE OF INDEPENDENCE

1. SYSTEMATICALLY DESTRUCTION OF THE INDIAN HANDICRAFT INDUSTRY BY THE BRITISH  DUE TO DISCRIMINATING TARIFF POLICY OF THE BRITISH GOVERNMENT
2. MODERN INDUSTRY SHOWED A BLEAK EXPANSION. BY AND LARGE RESTRICTED TO THE EXPANSIONS OF RAILWAYS.IT HELPED EXPANSION OF THE INDIAN MARKET FOR THE PRODUCTS
3. CAPITAL GOODS INDUSTRY CORE ELEMENT OF INDUSTRIAL GROWTH WAS ALMOST NON EXISTENT
4. TRADITIONAL INDUSTRIES WERE ON DECAYING AND MODERN INDUSTRY REMAINED IN INFANT SATGE. INDICATES THE BACKWARDNESS OF INDIAN ECONOMY