Mains Marathon 2024

Introduction

Before British colonization, India was renowned for its diverse and high-quality handicrafts, including textiles, metalwork, and pottery. The decline of traditional handicraft industries in India during the nineteenth century was a multifaceted process driven primarily by British economic policies.

Body

Key Reasons for the Decline of Indian Handicraft Industry:

• Export of Raw Materials:
  • India was a significant supplier of raw materials, especially cotton, to British industries.Raw materials were exported at low prices, processed in Britain, and sold back to India as finished goods at higher prices.
  • The focus on raw material export meant less attention and investment in local manufacturing and handicrafts which resulted in the degradation of local industrial capacity and skills.
• One Way Free Trade :
  • Indian handicrafts, especially textiles, faced high import tariffs in Britain.
    • Tariffs of nearly 80 % were imposed on Indian Textiles in European markets.
  • Conversely, cheap and machine-made imports from Britain flooded the Indian market after the Charter Act of 1813 allowing one-way free trade for British Citizens.
  • Local artisans could not compete with the low-cost British products, leading to a loss of market share.
• British Land Revenue Policies:
  • British land revenue policies, such as the Permanent Settlement, placed heavy burdens on rural populations.
  • Artisans, facing economic pressure, often abandoned their crafts and turned to agriculture or other means of livelihood.Many skilled artisans were forced into agricultural labor, reducing the pool of skilled craftsmen.
  • The socio-economic fabric of artisan communities was disrupted, leading to the decline of traditional crafts.
• Famine and Poverty:
  • India experienced several devastating famines during the colonial period.The British often responded inadequately to these crises, exacerbating the suffering and mortality rates.
    • Between 1850 and 1899, India suffered 24 major famines.
  • The focus on cash crops for export rather than food crops reduced food availability, contributing to famines.
  • The famine and poverty in colonial India, exacerbated by British economic policies, had a devastating impact on the handicraft industry such as decline in demand, loss of skilled artisans, and lack of capital for reinvestment led to the erosion of traditional crafts and the impoverishment of countless artisans.
• Absence of Institutional Support:
  • Indian handicrafts lacked the technological advancements that British industrial goods possessed. British policies further stifled any attempts at modernizing the Indian industry, ensuring that Indian goods remained less competitive.
  • The infrastructure developed during colonial rule, such as railways and roads, was primarily aimed at facilitating the export of raw materials from India and the import of British goods, rather than supporting local industries.

Conclusion

Dadabhai Naoroji's theory of economic drain, explained in his work "Poverty and Un-British Rule in India," highlighted how British policies drained wealth from India. This economic drain caused India's share of the global economy to drop drastically from 23% in the early eighteenth century to just 3% by independence. This decline severely impacted local industries and the livelihoods of artisans, a problem that persisted long after India gained independence.