AGE OF INDUSTRIALISATION

Industrialisation Before & After the Industrial Revolution

1. Before the Industrial Revolution
• 17th–18th century Europe:

• Merchants from towns shifted to villages.

• They gave money advances to peasants & artisans → encouraged production for
international markets.
• Reason for shift:

• Urban guilds (associations of producers & traders) restricted production, fixed prices, and
controlled entry into trades.
• Merchants found it hard to set up in towns → so they turned to villages.

Proto-Industrialisation System
• A network of production controlled by merchants.

• Example: Merchant clothier in England →

• Bought wool → gave it to spinners → yarn to weavers, fullers, dyers → final cloth sold in
London (which became a major finishing centre).
• Production happened in family farms, not factories.

• At each stage, 20–25 workers engaged by one merchant.

2. The Coming Up of Factories

• First factories: 1730s in England (few in number initially).

• Main industry: Cotton textiles.

• Raw cotton imports:

• 1760 → 2.5 million pounds.

• 1787 → 22 million pounds (huge increase).
• Technological inventions:
 • Improved carding, twisting, spinning & rolling → stronger threads & higher productivity.
• Richard Arkwright: Established the cotton mill → brought all processes under one roof.

• By 19th century, factory system expanded rapidly.

3. Pace of Industrial Change

• Leading sectors: Cotton & metals.

• Cotton → dominant till 1840s.

• Iron & Steel → rose with railway expansion (1840s onwards in England, 1860s in colonies).

• By 1873: Britain’s iron & steel exports = twice cotton exports.

• But…:

• Traditional industries were not easily displaced.

• By late 19th century → <20% of workers in modern industries.

• Textiles: large share still made in domestic units, not factories.

• Non-mechanised sectors: Innovations in food processing, pottery, furniture, glasswork, tanning,

building, etc.
• Spread of technology was slow:

• Expensive → industrialists cautious.

• Steam engine:

• James Watt improved Newcomen’s design (patent: 1781).

• Matthew Boulton manufactured them.
• But not widely adopted initially → by early 19th century, only 321 steam engines in England.

✅ In short (exam points):

• Proto-industrialisation (rural, merchant-controlled, family-based production).
• Rise of factories (Arkwright’s mill, cotton textile boom).
• Industrial change was gradual, not sudden → traditional industries remained strong.

• Cotton first, then iron & steel with railways.

• Steam engine revolutionised production, but adoption was slow.
4.2 Hand Labour and Steam Power
1. Abundance of Labour in Britain
• Britain had no shortage of workers in the 18th–19th centuries.

• Many poor peasants and vagrants (homeless wanderers) migrated to cities looking for jobs.

• As a result → wages were very low because of oversupply of labour.

2. Nature of Labour Demand

• Many industries had seasonal demand for workers:

• Examples: gas works, breweries, bookbinding, printing, ship repairing, etc.

• Some products could only be made by hand labour because they required human skill & precision,
not machines.

3. Preference for Handicrafts

• In Victorian Britain (mid-19th century):

• The upper classes preferred handmade goods → considered them a symbol of

refinement, luxury, and class.
• Handmade items were better designed, unique, and elegant.
• Machine-made goods were cheaper, mass-produced, and mostly exported to colonies.

4. Life of Workers
• Finding jobs depended on personal networks (friends, relatives).

• Many job-seekers had to wait weeks for work:

• Some slept under bridges.

• Others stayed in night shelters run by private individuals.
 • Seasonal work → after busy months, workers often searched for odd jobs.

• Wages during Napoleonic Wars (1790s–1815):

• Wages rose, but so did prices of food and goods, cancelling out benefits.

• Workers’ income depended on:

• Wage rate × number of days worked.

• About 10% of urban population was extremely poor till mid-19th century.

• Unemployment crisis in 1830s:

• Unemployment rates varied between 35%–75% in different regions.

5. Fear of New Technology

• Workers feared losing jobs → opposed new machines.
• Example:
• The Spinning Jenny (multi-spindle spinning frame) threatened hand spinners (mainly
women).
• Result → strong protests & resistance against machines.

6. Expansion of Employment After 1840s

• After 1840s, construction activities increased:

• Railways, roads, railway lines, bridges, etc.

• This created large-scale employment in cities.

• Transport industry boom:

• Number of labourers doubled in the 1840s.

• It doubled again over the next 30 years.

✅ In short (exam points):

• Labour was abundant and cheap → wages low.

• Seasonal demand & reliance on hand labour for some industries.
 • Rich classes valued handmade goods over machine-made ones.
• Workers faced poverty, unemployment, and insecurity → resisted machines.
• After 1840s, transport & construction projects boosted employment.

4.3 Industrialisation in the Colonies

1. The Age of Indian Textiles
• Before machine industries, Indian silk & cotton textiles dominated world markets.

• Trade routes:
• Armenian & Persian merchants carried goods from Punjab → Afghanistan, Persia, Central
Asia.
• Major ports: Surat, Masulipatnam, Hooghly.

• Indian merchants & bankers financed production, supplied goods to exporters.

• By 1750s, European companies arrived → gained monopoly rights & concessions from local courts.

• Result:
• Decline of old ports (Surat, Hooghly).

• Rise of new colonial ports (Bombay, Calcutta).

• Indicated growth of British colonial power.

2. Situation of Weavers
• 1760s: Indian fine textiles in great demand in Europe.

• Problem for East India Company: faced competition from French, Dutch, Portuguese & local
traders.
• After gaining political power, the Company created a management & control system:

• Removed existing traders & brokers.

• Appointed gomasthas (paid servants) to supervise weavers, supply raw materials, check
quality.
• Introduced system of advances:

• Weavers received loans to buy raw material.

 • In return, they had to sell only to the Company.

• This restricted their freedom to sell to other buyers.

3. Condition of Weavers
• Problems with gomasthas:

• They were outsiders, arrogant, backed by sepoys/peons.

• Penalised, fined, or even flogged weavers for delays.

• Consequences:

• Weavers lost bargaining power, prices were kept very low by the Company.

• Accepted loans tied them to the Company.

• Many migrated (e.g. from Carnatic, Bengal) or rebelled with local traders.

• By early 19th century → many weavers closed workshops & shifted to agricultural labour.

4. Manchester Comes to India

• Decline of Indian textiles:

• In 1811–12, cotton textiles = 33% of India’s exports.

• By 1850–51, dropped to 3%.

• Why?
• British industrialists pressed government to:

• Impose import duties on Indian textiles → protect Manchester mills.

• Force East India Company to sell British goods in India.

• By 1850s, cotton textiles = 31% of India’s imports.

• By 1870s, rose to 50%+.

5. Problems Faced by Indian Weavers

1. Collapse of export market:

• Manchester goods flooded Indian markets.

• Machine-made British cloth was cheap → Indian handwoven cloth couldn’t compete.
 2. Shortage of raw cotton:

• During American Civil War (1861–65), cotton exports from India to Britain rose.

• Indian weavers couldn’t get enough raw cotton.

• They were forced to buy costly imported cotton from Britain.

✅ In short (exam points):

• Indian textiles were world-famous before machine industries.
• East India Company’s monopoly destroyed weavers’ independence.
• Gomasthas exploited weavers with advances, fines & low prices.
• Manchester goods & shortage of raw cotton → collapse of Indian weaving industry.

4.4 Factories Come Up

First Factories in India
• Cotton & Jute Mills were the earliest industries.

• 1854 → First cotton mill in Bombay.

• 1855 → First jute mill in Bengal.

• 1860s → Elgin Mill in Kanpur.

• 1861 → First cotton mill in Ahmedabad.

• 1874 → First spinning & weaving mill in Madras.

• Most of these industries were started by Indian entrepreneurs.

Early Entrepreneurs
• Many Indians grew rich through opium and tea trade with China before investing in industries.

• Famous industrialists:
• Dwarkanath Tagore → set up 6 joint-stock companies (1830s–40s).

• Jamsetjee Nusserwanjee Tata → set up TISCO (iron & steel works) at Jamshedpur,
1912.
• Seth Hukumchand → first Indian jute mill (Calcutta, 1917).
 • Others: Dinshaw Petit, Shiv Narayan Birla (G.D. Birla’s grandfather).

Restrictions on Indian Merchants

• Could not trade with Europe in manufactured goods.

• Allowed only to export raw materials & foodgrains (cotton, opium, wheat, indigo) needed by British.

• European Managing Agencies (Bird Heiglers & Co., Andrew Yule, Jardine Skinner & Co.) controlled
industries.
• They arranged capital & managed joint-stock companies.

• Indian financiers gave money, but Europeans made decisions.

• European businessmen had exclusive Chambers of Commerce → Indians excluded.

Workers and Their Condition

• Expansion of factories = more demand for workers.
• Many peasants & artisans left villages and moved to cities like Bombay & Calcutta.

• Problems faced:

• Jobs were hard to get (more workers than jobs).

• Entry restricted → controlled by industrialists.

• Recruitment through a Jobber (old, trusted worker).

The Jobber
• Brought workers from his own village.
• Helped them settle, find jobs, gave loans during crisis.
• Became powerful → demanded money & gifts in return for favours.

4.5 The Peculiarities of Industrial Growth

Role of European Managing Agencies
• European Managing Agencies controlled a large portion of industrial production in colonial India.
• They mainly invested in:
• Tea and coffee plantations.
 • Indigo and jute industries.
• Mining projects.
• Focus was largely on export-oriented goods, not on products for sale within India.
• This shows that colonial industrialisation served British needs more than Indian domestic
demand.

Avoiding Direct Competition with Manchester

• In the late 19th century, Indian businessmen began setting up industries.
• However, they avoided direct competition with Manchester cloth in the Indian market, since British
imports dominated.
• Instead, they concentrated on areas where British goods were less competitive.
Industrial Changes in the 20th Century
1. Swadeshi Movement (early 1900s):
• Nationalist leaders urged people to boycott foreign cloth.
• Industrial groups came together to demand tariff protection and concessions from the
government.
• This strengthened the case for Indian industries.
2. Shift from Yarn to Cloth Production:
• Earlier, India exported yarn to China.
• But by 1906, Chinese and Japanese mills began flooding their own markets with yarn.
• India responded by shifting from yarn export → cloth production.
• Result: Cotton piece-goods production doubled between 1900 and 1912.
3. First World War (1914–1918):
• War created huge demand for goods like cloth, jute bags, steel, etc.
• New factories were set up to meet war needs.
• Indian industrial production increased sharply.
4. After the War:
• Manchester’s dominance declined permanently in the Indian market.
• Britain’s economy weakened → unable to modernise or compete with US, Germany, Japan.
• Indian industries found more space to grow.

Predominance of Small-Scale Industries

• Despite industrial growth, large industries were confined mainly to Bengal and Bombay.
• Across the rest of the country, small-scale and handicraft industries continued to dominate.
Key Features of Small-Scale Production:
• Many artisans and weavers adopted new technology like the fly shuttle loom.
• Varieties of cloth produced:
• Coarse cloth → bought by the poor. Its demand fell during famines or bad harvests.
• Fine cloth (e.g., Baluchari, Banarasi saris) → bought by the rich. Demand was stable, as
famines did not affect wealthy consumers.
• Work conditions:
• Production required long working hours.
• Entire families, including women and children, often contributed at different stages of
production.
• Mills could not replicate the intricate designs of hand-woven fine cloth, so traditional weavers
continued to enjoy importance in niche markets.

Conclusion
• Industrial growth in colonial India was unique because:
• It was shaped by colonial priorities (exports, plantations, mining).
• Nationalist movements and global economic changes pushed Indian industries to grow.
• Yet, small-scale handicrafts and household industries remained dominant throughout the
20th century, showing the resilience of India’s traditional economy alongside modern
factories.

4.6 Market for Goods

Role of Advertisements
• Both British and Indian manufacturers used advertisements, labelling, and calendars to
popularise products.
• Advertising was done through:
• Newspapers, magazines, TV, street walls, hoardings, calendars.
• Advertisements made products look desirable and necessary → created a new consumer
culture in the industrial age.
Labels on Cloth and Products
• When Manchester industrialists sold cloth in India, they labelled the bundles “Made in
Manchester”.
• Purpose of labelling:
• To introduce buyers to the place of manufacture.
• To make the company name familiar.
• Sometimes, they printed images of Indian gods & goddesses (e.g., Krishna, Saraswati) on labels.
• This helped make foreign goods appear familiar and acceptable to Indian buyers.

Use of Calendars
• By the late 19th century, calendars became a powerful advertising tool.
• Why? Because even people who could not read used calendars in their homes.
• Images used in calendars:
• Gods and goddesses.
• Important figures, emperors, nawabs.
• These visuals made advertisements more appealing and memorable.

Nationalist Use of Advertisements

• Advertisements were also used during the Swadeshi Movement (early 20th century).
• They carried a nationalist message:
• Promoted Indian-made goods.
• Guaranteed the quality of Swadeshi products.
• Helped challenge foreign goods and encouraged people to buy desi products.

Conclusion
• The age of industries brought:
 • Technological changes.
• Growth of factories.
• Formation of a new industrial labour force.
• However, small-scale production and hand-made goods continued to play an important role in
India’s industrial landscape.