History & Civics

To benefit British industry, British rule pursued a policy of free trade in India. The nationalists were generally concerned about the lack of public investment in agriculture and argued that the British were trying to turn India into a valuable source of raw materials and a consumer of British-manufactured goods to make India an extension of the British economy.

(Source: History of Modern India by Bipin Chandra.)

Discuss how the British empire deindustrialised India.

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Answer

The British Empire deindustrialised India in the following ways:

  1. Destruction of Handicrafts — Heavy duties were imposed on Indian goods exported to Britain, while British manufactured goods entered India at very low duties. This made Indian handicrafts uncompetitive.

  2. Import of Machine-made Goods — Cheap, machine-made British goods flooded Indian markets, causing the decline of traditional industries and ruining many artisans and weavers.

  3. Lack of Industrial Development — The British did little to promote or modernise Indian industries. India was mainly developed as a supplier of raw materials and a market for British finished goods.

  4. Loss of Livelihood — Displaced artisans and craftsmen were forced to depend on agriculture, increasing pressure on land and rural poverty.

  5. Commercialisation of Agriculture — Cultivation of cash crops such as cotton, indigo and opium was encouraged to meet the needs of British industries, strengthening India's dependence on the British economy.

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