INDUSTRIALISATION IN BRITAIN AND DEINDUSTRIALISATION IN INDIA – WORLD HISTORY

News: Britain’s Industrial Revolution was actually premised upon the deindustrialisation of India

 

What's in the news?

       As the Oxford Union celebrates its second centenary in 2023, a look at one of the most viral moments that the famous Oxford Union Debate has seen - Congress MP Shashi Tharoor's scathing indictment of British colonialism in 2015.

 

Industrial Revolution:

       The Industrial Revolution refers to a series of transformations in the methods and relations of production that exponentially increased outputs and put the West on its path towards prosperity and power.

       These transformations included going from hand production methods to machines; new chemical manufacturing and iron production processes; the increasing use of water power and steam power; the development of machine tools; and the rise of the mechanised factory system.

 

Colonial expansion and British industry:

       British colonial conquest was primarily an economic enterprise.

       The British East India Company was a trading company which began maintaining its own territories to protect its economic interests.

       As British control expanded over the Indian subcontinent, India became one of Britain’s most important assets – supplying men, materials and markets for its colonial overlord.

       As Tharoor would say in his speech, “By the end of the 19th century, India was Britain’s biggest cash cow”.

 

Indian Scenario:

       India is not an industrial country in the true and modern sense of the term. But by the standards of the 17th and 18th centuries, i.e., before the advent of the Europeans in India, India was the ‘industrial workshop’ of the world.

       Further, India’s traditional village economy was characterised by the “blending of agriculture and handicrafts”. But this internal balance of the village economy had been systematically slaughtered by the British Government.

 

Indian Deindustrialisation:

       ‘Deindustrialisation’ as a term is the systematic destruction of the Indian domestic economy that was crucial to Britain’s industrial revolution.

       While there may not have been modern industries, there were thriving economies across the subcontinent.

 

How India's Deindustrialisation contributed to Britain's Industrialisation?

As the British colonised the subcontinent, they controlled and changed the traditional economies to benefit Britain such as

       India is becoming a source of cheap raw materials rather than expensive finished goods.

       One way free trade - Britain’s harsh taxation system - taxing Britain's imports especially Indian exports to the British at an exorbitant rate.

       England pursued the policy of protection through the imposition of import duties and eased export duty for British goods.

       India served as a market for British's finished goods.

       In the absence of Indian markets as well as, to an extent, raw materials, British industry would neither see the demand nor the supply to help it thrive.

       The Industrial Revolution improved the living standards, technological capabilities and economic might of Britain, its ability to colonise became even greater.

       In effect, this formed a cycle - colonialism supported British industrial growth, which in turn fuelled further colonial expansion and repression.

       The story of the handloom workers, whose fingers and looms were not only broken but who were driven to the streets because of competition from the cheap mill-produced cloth from Britain, is among the most famous.

       Competition from machine-made goods in the wake of the industrial revolution hastened the process of the decline of traditional handicrafts.

       Dadabhai Naoroji in his 1867 book ‘Poverty and Un-British Rule in India’, he proposed the “drain of wealth” theory, in which he articulated how British rule had brought losses to the tune of hundreds of millions of rupees in the Indian economy.

       RP Dutt in his 1940 classic, ‘India Today’ wrote that the capital to finance the Industrial Revolution in India instead went into financing the Industrial Revolution in Britain.

 

Thus, Britain came right in, broke their thumbs, smashed their looms, imposed tariffs and duties on their cloth and products, and started of course, taking the raw materials from India, and shipping back manufactured cloth, flooding the world’s markets with what became the products of the dark and satanic mills of Victorian England. That meant that the weavers in India became beggars, and India went from being a world-famous exporter of finished cloth, into an importer.