Evolution of Modern Industry in India | Sociology Optional for UPSC (Notes) PDF Download

Industrialization in India picked up mainly after independence

Development of Machine-Based Industries in India during the 19th Century

In the second half of the 19th century, India witnessed the establishment of large-scale machine-based industries, marking the beginning of the machine age in the country. This period saw the emergence of cotton textile, jute, and coal mining industries, which laid the foundation for the industrial development in India.

1. Emergence and Expansion of Textile, Jute, and Coal Mining Industries: The machine age in India began with the establishment of the first textile mill in Bombay by Cowasjee Nanabhoy in 1853 and the first jute mill in Rishra (Bengal) in 1855. These industries experienced slow but steady growth during this period. By 1905, India had 206 cotton mills employing nearly 196,000 people, and by 1901, there were over 36 jute mills employing nearly 115,000 people. The coal mining industry also provided employment to nearly one lakh people in 1906.
2. Development of Other Mechanical Industries: During the second half of the 19th and the beginning of the 20th centuries, other mechanical industries such as cotton gins and presses, rice, flour and timber mills, leather tanneries, woollen textiles, sugar mills, iron and steel works, and various mineral industries, like salt, mica, and saltpetre, were established. The 1930s saw the development of cement, paper, matches, sugar, and glass industries, although their growth remained stunted.
3. British Domination in Indian Industries: Most of the modern Indian industries during this period were owned or controlled by British capital, drawn to India by the prospects of high profits, cheap labor, and readily available raw materials. Foreign capital easily overwhelmed Indian capital in many industries, with only the cotton textile and sugar industries witnessing significant Indian participation. Indian capital faced challenges against the power of British managing agencies and banks, often struggling to get credit and paying higher interest rates compared to their foreign counterparts.
4. Emergence of Indian Banks and Insurance Companies: Gradually, Indian entrepreneurs began establishing their own banks and insurance companies, leading to a decrease in the share of foreign banks in India from 70% in 1914 to 57% in 1937.
5. British Advantage and Government Favouritism: British enterprises in India benefited from close connections with British machinery and equipment suppliers, shipping, insurance companies, marketing agencies, government officials, and political leaders, thus maintaining their dominant position in the Indian economy. The colonial government followed a policy of favoring foreign capital over Indian capital, with discriminatory railway freight rates further hindering the growth of domestic trade.

Serious Weakness of Indian Industrial Effort

1. Absence of Heavy Industries: One of the major weaknesses of the Indian industrial effort was the absence of heavy or capital goods industries, which are essential for rapid and independent development. India had no significant plants for producing iron, steel, or machinery, and only a few repair workshops and iron and brass foundries represented engineering and metallurgical industries.
2. Plantation Industries and Foreign Ownership: The 19th century saw the growth of plantation industries such as indigo, tea, and coffee, which were primarily European-owned. The foreign-owned industries provided little benefit to Indians, as most of the profits were sent abroad, and the industries relied heavily on foreign staff and equipment.
3. Slow Progress and Limited Scope of Industrialization: Industrial progress in India was slow and mainly confined to cotton and jute industries, tea plantations, and later sugar and cement industries. The modern industrial development of India was insignificant compared to other
4. Decay and Decline of Handicraft Industries: The decline of indigenous handicraft industries continued without any government efforts to protect, rehabilitate, or modernize them. Indian industries had to develop without government support, often facing opposition from British policies that discouraged industrial growth in India.
5. Lack of Protection for Infant Industries: Indian industries, still in their infancy, needed protection from already established foreign industries but were denied this by the British government. The government also refused to provide financial or other support to Indian industries, as was being done in other countries at the time.
6. Inadequate Technical Education: Technical education in India remained backward until 1951, which further contributed to industrial backwardness. The lack of government support for technical education projects hindered the growth of industries in the country.
7. Discrimination Against Indian-owned Industries: The Indian government provided some tariff protection to Indian industries in the 1920s and 1930s, but often discriminated against Indian-owned industries in favor of foreign-dominated ones.
8. Regional Disparities in Industrial Development: Indian industries were concentrated in a few regions and cities, leaving large parts of the country underdeveloped. This unequal distribution of economic development led to regional disparities in income and affected national integration.
9. Emergence of New Social Classes: The limited industrial development of India led to the growth of two new social classes: the industrial capitalist class and the modern working class. These classes represented new technology, economic organization, social relations, and ideas, and played a significant role in the country's development despite their small numbers.

Conclusion

Frequently Asked Questions (FAQs) of Evolution of Modern Industry in India

What were the main reasons for the absence of heavy industries in India during the 19th century?

The absence of heavy industries in India was primarily due to the lack of significant plants for producing iron, steel, or machinery, limited technical education, and the absence of government support for industrial growth.

How did the foreign ownership of plantation industries affect the Indian economy?

Foreign-owned plantation industries provided little benefit to Indians, as most of the profits were sent abroad, and the industries relied heavily on foreign staff and equipment, hindering the growth of indigenous industries.

Why was the progress of industrialization in India slow and limited in scope?

Industrial progress in India was slow due to the lack of government support, protection for infant industries, inadequate technical education, and discrimination against Indian-owned industries.

How did regional disparities in industrial development impact India?

The concentration of industries in a few regions and cities led to unequal distribution of economic development, resulting in regional disparities in income and affecting national integration.

What were the two new social classes that emerged as a result of India's limited industrial development?

The limited industrial development of India led to the growth of the industrial capitalist class and the modern working class, which represented new technology, economic organization, social relations, and ideas, and played a significant role in the country's development despite their small numbers.