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The age of Industrialization
CHAPTER 5 HISTORY
Scenario before inventions.
• Major occupation of the people at that time was
• Rearing animals and agriculture. – It was the AGRARIAN age
• FEUDALISM AND ZAMINDARI SYSTEM PREVAILED.
• Feudal Lords exploited the SERBS and Zamindars exploited
the forced labourers or they were called beggars.
• Explorations of new land routes led to Colonization and
Imperialism
• Colonial Masters used the resources in the colonised
countries to earn profit and it was invested further to earn
more profit. And this gave way to industrialization through
capitalization. People who invested were called Capitalists.
• The progress was rapid in some places and in some places it
was slow.
Before the Industrial Revolution
• The period of industrialization before the first
factories came up in Europe is termed as proto-
industrialization.
• There was large-scale industrial production for an
international market not based on factories. It was
controlled by merchants and the goods were
produced by a vast number of producers working
within their family farms and not in factories.
• This period was marked by merchants from towns
getting products made in villages.
17th and 18th century:
• Merchants from the towns of Europe began moving
to the countryside, supplying money to peasants
and artisans, persuading them to produce for an
international market.
• Merchants offered advances for producing clothes
for them at a time when open fields were
disappearing and commons were being enclosed.
Income from proto-industrial production
supplemented their shrinking income from
cultivation
WHY DID THE MERCHANTS TURN TO THE
VILLAGES?
• There were powerful trade and craft guilds in urban
areas. These associations controlled competition
and prices and prevented entry of a new player in
the market. Because of them, it was difficult for
new merchants to set business in towns.
• Guilds
Associations of producers that trained
craftspeople, maintained control over production,
regulated competition and prices and restricted the
entry of new people into the trade. Rulers granted
different guilds the monopoly right to produce and
trade in specific products.
New Merchants turned to the countryside
With the expansion of world trade and the
acquisition of colonies in different parts of
the world, the demand for goods began
growing. But merchants could not expand
production within towns. This was because
here urban crafts and trade guilds were
powerful. It was very difficult for new
merchants to set up business in towns. So
they turned to the countryside.
Artisans at countryside were willing to work
for the merchants
Open fields and commons were disappearing
Cottagers and poor peasants had to now look
for alternative sources of income.
When merchants offered advances, peasants
households eagerly agreed.
This income supplemented their shrinking
income from cultivation.
Relationship developed between the town and the
countryside
Merchants were based in towns. A merchant
clothier in England purchased wool from a wool
stapler, and carried it to the spinners; the yarn that
was spun was taken in subsequent stages of
production to weaves, fullers and then to dyers. The
finishing was done in London before the export
merchant sold the cloth in the international market.
Reasons for large scale production being carried out
in the countryside and not in factories:
(1) Huge demand: The world trade expanded at a very fast
rate during the 17th and the 18th centuries. The acquisition
of colonies was also responsible for the increase in
demand. The town producers failed to produce the
required quantity.
(2)Powerful town producers.
• -The town producers were very powerful.
• -The producers could not expand the production at will.
This was because in the towns, urban crafts and trade
guilds were powerful. These were associations of
producers that trained craftspeople, maintained control
over production, regulated competition and prices, and
restricted the entry of new people within the trade.
• (3) Monopoly rights: The rulers granted different
guilds the monopoly right to produce and trade in
specific products, it was therefore difficult for new
merchants to set up business in towns. So they
turned to the countryside.
• (4) New economic situation in the countryside:
Open fields were disappearing in the countryside
and the commoners were being enclosed.
Cottagers and poor peasants who were earlier
depended on common lands became jobless. So
when the merchants came around and offered
advances to produce, peasants’ households eagerly
agreed.
Why did the peasants agree to accept advances
made by the merchants to produce goods?
• (i) Disappearing open field system: In the countryside,
the open field system was prevailing i.e., land was free
and anyone could use it for production. But as the
population increased, the open field system started
disappearing. The rich landlords started enclosing the
open fields.
• (ii) Cottagers and poor peasants: They had earlier
depended on common lands for their survival, gathering
the firewood, berries, vegetables, hay and straw. Now
they had to look for alternative sources of income. Many
had tiny plots of land which could not provide work for
all members of the household.
• (iii) Small fields i As most of the land was acquired by
the rich landlords, the poor had tiny plots of land which
could not provide work for all the members of the
household. So when merchants came around, and
offered advances to produce goods for them, peasant
households eagerly agreed.
• (iv) Full utilisation of family labour resources: By
working for the merchants, the poor peasants and the
artisans could continue to remain in the countryside,
and cultivate their small plots.
• (v) Income : Income from proto-industrial production
supplemented their shrinking income from cultivation.
It also allowed them a fuller use of their family labour
resources.
• Answer the following questions.
• 1. What are guilds?
• 2. Define fuller, stapler.
• 3. What do you mean by proto industrialization?
• 4. Why were the merchants not able to expand
production within the towns of England?
• 5. Why did the people of the rural side accept the
offers made by the merchants?
Cotton value chain
The Coming Up of the Factory
• 1730s: The earliest factories in England came up.
• First symbol of the new era was cotton.
• Inventions in the 18th century increased the efficacy of
each step of production (carding, twisting, spinning and
rolling).
• The output per worker also rose.
• Richard Arkwright invented the cotton mill.
• Mill production of cotton started, which allowed a more
careful supervision over the production process.
• Cotton became the leading sector in the first phase of
industrialization.
The first symbol of the new era was cotton.
• Its production boomed in the late nineteenth century, which
was linked to a number of changes within the process of
production.
A series of inventions in the eighteenth century increased the
efficacy of each step of the production process.
Richard Arkwright created the cotton mill.
The costly new machines could be purchased, set up and
maintained in the mill.
• When all the processes were brought together under one roof
and management, it allowed a more careful supervision over
the production process, a watch over quality, and the regulation
of labour.
• It was called FACTORY.
• In the early nineteenth century, factories increasingly became
an intimate part of the English landscape.
.
First cotton mill in Lancashire, England
Industrial Manchester by M. Jackson, 1857
Richard Arkwright’s cotton mill
The Pace of Industrial Change
• Cotton was the leading sector, up to the 1840s.
• After that the iron and steel industry led the way.
• The expansion of railways in England and its colonies rapidly
increased the demand for iron and steel.
• The new, technologically advanced industrial sectors could
not easily displace the traditional industries.
• Textiles were still produced within domestic units and not in
factories.
• The high cost of machines and the uncertainty of their
performance made technological changes slow.
• Merchants and industrialists were cautious about accepting
and using the new technology.
• 1781: James Watt improved the steam engine produced by
Newcomen and patented the new engine.
The Pace of Industrial Change
• The new industries could not easily displace traditional
industries.
• At the end of the nineteenth century, less than 20 per cent of
the total workforce was employed in technologically advanced
industrial sectors.
• The pace of change in the ‘traditional’ industries was not set by
steam-powered cotton or metal industries, but they did not
remain entirely stagnate either.
• Seemingly ordinary and small innovations were the basis of
growth in many non-mechanized sectors.
• New technology was expensive and merchants and
industrialists were cautious about using it.
• The machines often broke down and repair was costly.
• At the beginning of the nineteenth century, there were no more
than 321 steam engines all over England.
• Steam engines were not used in any of the other industries till
much later in the century.
A fitting shop at railway works in England Spinning factory in 1830
Hand Labour and Steam Power
Industrialists initially were not much interested in
mechanization because –
Industrialists had no problem of labor shortage or high
wage costs.
They did not want to introduce machines that got rid of
human labor and required large capital investment.
In industries where production fluctuated with the
season, industrialists usually preferred hand labor,
employing workers for the season.
• Machines were oriented to producing uniforms,
standardized goods for mass market.
• But the demand in the market was often for goods with
intricate designs and specific shapes.
• These required human skill, not mechanical technology.
• Handmade products came to symbolize refinement and
class.
• They were better finished, individually produced, and
carefully designed.
• Machine made goods were for export to the colonies.
Importance of Hand Labour
• Introduction of machines required large capital
investment. Hence, cheap labour was preferred over the
use of machines.
• Manual labour was also preferred in the industries where
production fluctuated with seasons.
• Goods with intricate designs and specific shapes were in
great demand in the European markets.
• This was possible only with hand labour and not machine
outputs.
• The aristocrats and the bourgeoisie in Victorian Britain
preferred the refined and carefully handmade products;
machine made goods were for the colonies.
Life of the Workers – THE PROBLEMS FACED
• Large scale migrations to towns and cities from countryside in
search of jobs.
• Job itself was difficult to get. People had to have
recommendations.
• Many job-seekers had to wait weeks, spending nights under
bridges or in night shelters. Some stayed in Night Refuges that
were set up by private individuals; others went to the Casual
Wards maintained by the Poor Law authorities.
• Workers became jobless after the busy season of work got over.
• Seasonality of work in many industries meant prolonged periods
without work. After the busy season was over, the poor were on
the streets again.
• Some returned to the countryside when the demand for labour in
the rural areas opened up.
• They either returned to the countryside or looked for odd jobs,
which till the mid-nineteenth century were difficult to find.
• The supply of workers were high and opportunity of
jobs were less. This led to low wages.
• The period was also marked by the depression after
the first world war.
• At the best of times till the mid-nineteenth century,
about 10 per cent of the urban population were
extremely poor, which went up to anything between 35
and 75 per cent in different regions.
• The fear of unemployment made workers hostile to the
introduction of new technology.
• When the Spinning Jenny was introduced in the woolen
industry, women who survived on hand spinning began
attacking the new machines.
• After 1840 building and construction activities
intensified, storage facilities were needed, roads for
transporting , railway network grew, trading by ships
all created new job opportunities.
Answer these questions.
• 1. Which was the first industry of production in
Britain?
• 2. Why was the steam engine slow to be accepted
by industries?
• 3. Why did the people not like machine-made
goods?
Home Assignment:
• Read the portion on life of the workers.
• Answer the following questions.
• 1. Why did the workers fear the Spinning Jenny?
• 2. What kind of life did the workers lead during the
Industrial revolution?
• 3. How was infrastructure developed after the
1840s?
Industrialization in the Colonies
The Age of Indian Textiles
• Before the age of machine industries, silk and cotton goods
from India dominated the international market in textiles.
• Coarser cottons were produced in many countries, but the finer
varieties often came from India.
• Armenian and Persian merchants took goods from Punjab to
Afghanistan, Eastern Persia and Central Asia.
• Bales of fine textiles were carried on camel back via the north-
west frontier, through mountain passes and across deserts.
• A vibrant sea trade operated through the main pre-colonial
ports.
• Surat on the Gujarat coast connected India to the Gulf and Red
Sea Ports; Masulipatam on the Coromandal coast and Hoogly in
Bengal had trade links with Southeast Asian ports.
Surat Port
Textiles carried on camel back via the
north-west frontier
• A variety of Indian merchants and bankers were involved in
this network of export trade, financing production, carrying
goods and supplying exporters.
• They gave advances to the weavers, procured the woven
cloth from weaving villages and carried the supply to the
ports.
• A complex and complete market:- The whole process of trade
basically involved three steps :
• • Financing production
• • Carrying or transporting goods
• • Supplying goods to the exporters
• Supply merchant; linked the port towns to the inland regions.
They gave advances to weavers, procured the woven cloth
from weaving villages, and carried the supply to the ports. At
the port, the big shippers and export merchants had brokers,
who negotiated the price and bought goods from the supply
merchants operating inland.
‘The port of Surat and Hoogly declined by the end of the
I8th century.’ Explain.
• (i) Most of the European companies had huge resources, so
it was very difficult for the Indian merchants and traders to
face the competition.
• (ii) The European companies were gaining power by
securing a variety of concessions from the local courts.
• (iii) Some of the companies got the monopoly rights to Dade.
• All this resulted in the decline of the old ports of Surat and
Hoogly through which local merchants had operated.
Exports from these ports fell dramatically, the credit that
had financed the earlier trade began drying up. and the local
bankers slowly went bankrupt.
• (iv)In the last years of the seventeenth century, the gross
value of trade that passed through Surat had been 16
million. By the 1740s. it had slumped to 3 million rupees.
• (v) With the passage of time. Surat and Hoogly decayed.
Bombay (Mumbai), and Calcutta (Kolkata) grew.
Decline of the Old Ports and the Rise
of the New Ones
The European companies gradually gained
power. This resulted in a decline of the old
ports of Surat and Hoogly through which
local merchants had operated. Exports from
these ports fell dramatically, the credit that
had financed the earlier trade began drying
up and the local bankers slowly went
bankrupt.
While Surat and Hoogly decayed, Bombay
and Calcutta grew. This shift from the old
ports to the new ones was an indicator of
the growth of colonial power. Trade through
the new ports came to be controlled by
European companies, and was carried in
European ships.
• The European companies gradually gained power
and monopoly rights.
• Trade through the new ports of Calcutta and
Mumbai came to be controlled by the European
companies.
• By the 1750 this network, controlled by Indian
merchants, was breaking down.
Competitors of cotton trade in India
Plight of Weavers- What Happened to Weavers ?
• Ways adopted by Company officials to ensure regular supplies of Cotton and
Silk textiles for the Indian weavers –
• Once the East India Company established political power, it could assert a
monopoly right to trade. It proceeded to develop a system of management
and control that would eliminate competition, control costs and ensure
regular supplies of cotton and silk goods. This was done through a series of
steps –
• The company tried to eliminate the existing traders and brokers by appointing
a paid servant called the gomastha to supervise weavers, collect supplies,
and examine the quality of cloth.
• It prevented Company weavers from dealing with other buyers, by the system
of advances.
• Those who took advance, had to hand over the cloth they produced to the
gomastha. They could not take it to any other trader.
• Many weavers had small plots of land, which now they had to lease
out to others and devote all their time to weaving. Weaving required
the labor of the entire family.
• Earlier supply merchants had a close relationship with the weavers,
the gomasthas were outsiders, they acted arrogantly, marched into
villages with sepoys and peons and punished weavers for delays in
supply – often beating and flogging them.
• Weavers lost the space to bargain for prices and sell to different
buyers, the price now they received was miserably low and the
loans they had accepted tied them to the company.
• In many places, weavers deserted villages and migrated, weavers
along with traders revolted, began refusing loans, closing down
their workshops and taking to agricultural labours.
Gomastha
• A paid servant called the gomastha was appointed for supervising
weavers, collecting supply and examining the quality of cloth.
• The Company prevented the weavers from dealing with other buyers.
• Once the order was placed, the weavers were given loans for
purchasing raw material for production.
• The produced cloth was to be handed over to the gomastha.
• The new gomasthas had no social link with the village.
• They acted arrogantly, marched into villages with sepoys and peons
and punished weavers for delays in supply.
• The price received by weavers from the Company was miserably low
and the loans that they had accepted tied them to the Company.
• In Carnatic and Bengal weavers deserted villages and migrated,
setting up looms in other villages where they had some family
relation. Elsewhere, the weavers along with the village traders
revolted, opposing the Company and its officials.
• Weavers began refusing loans, closing down their workshops and
taking to agricultural labour
Often there were reports of
Clashes between weavers and gomasthas
Plight of Weavers
• The East India Company gained monopoly rights over the
Indian textile trade. It tried to eliminate the existing
traders and brokers connected with the cloth trade and
established direct control over the weavers.
• A paid servant called the gomastha was appointed for
supervising weavers, collecting supply and examining
the quality of cloth.
• The Company prevented the weavers from dealing with
other buyers.
• Once the order was placed, the weavers were given
loans for purchasing raw material for production. The
produced cloth was to be handed over to the gomastha.
• The new gomasthas had no social link with the village.
They acted arrogantly, marched into villages with
sepoys and peons and punished weavers for delays in
supply.
• The price received by weavers from the Company was
miserably low and the loans that they had accepted tied
them to the Company.
• In Carnatic and Bengal weavers deserted villages and
migrated, setting up looms in other villages where they
had some family relation. Elsewhere, the weavers along
with the village traders revolted, opposing the Company
and its officials.
• Weavers began refusing loans, closing down their
workshops and taking to agricultural labour.
The establishment of political power by the East India
Company resulted in ruination of the Indian weavers.
• (i) Monopoly right : Once the East India Company
established political power, it asserted a monopoly right to
trade
• (ii) New system : After establishing monopoly over trade it
proceeded to develop a system of management and
control that would eliminate competition, control costs,
and ensure regular supplies of cotton and silk goods. This
it did through a series of steps.
• (iii) Appointing Gomasthas: The Company tried to eliminate
the existing traders and brokers connected with the cloth
trade, and establish a more direct control over the
weavers. It appointed a paid servant called the Gomostha
to supervise weavers, collect supplies and examine the
quality of cloth.
• (iv) System of advances : To have a direct control over
the weavers, the company- started the system of
advances. Once an order was placed, the weavers were
given loans to purchase the raw material for their
production. Those, who took loans had to hand over the
cloth they produced to the Gomastha. They could not
take it to any other trader.
• (v) Use of power : The places where the weaver refused
to cooperate the Company used its police. At many
places weaver were often beaten and flogged for delays
in supply.
Why the system of advances proved harmful for the weavers?
• (i) No chance of bargaining: The weavers lost any chance of
bargaining.
• (ii) Leasing of land: Most of the weavers had to lease out the
land and devote all their time to weaving. Weaving in fact,
came to absorb the labour of the entire family.
• (iii) Dependency for food on others: Most of the weavers
after losing their land became dependent on others for the
food supplies.
• (iv) Clashes with Gomasthas: The new Gomasthas were
outsiders, with no long term social link with the village. So
they acted arrogantly, marched into villages with the police,
and punished weavers for delay in supply.
• So. there were reports of clashes between weavers and
Gomasthas.
ANSWER THE FOLLOWING.
• 1. What were the causes of decline of the old ports
of India?
• 2. Enumerate the results of the clashes between
gomasthas and weavers later on.
• 3.What steps were taken by East India Company to
control the market of cotton and silk goods?
British Textiles in India
• The British industrialists pressurized the government to impose duties on
cotton textiles so that Manchester goods could sell in Britain without any
outside competition.
• The industrialists also persuaded the East India Company for selling the British
manufactures in the Indian markets.
• Exports of British cotton goods increased dramatically in the early 19th
century.
• The export market of the Indian cotton weavers collapsed and the local market
shrank, being glutted with cheap Manchester imports.
• The weavers could not get sufficient supply of good quality raw cotton.
Weavers in India were starved of supplies and forced to buy raw cotton at
exorbitant prices.
• By the end of the 19th century, factories in India began production, flooding
the markets with machine-made goods. Consequently, the weaving industry
decayed and died.
Manchester Comes to India
By the beginning of the nineteenth century, textile
exports from India declined.
In 1811-12 piece goods accounted for 33 % of India’s
exports; by 1850-51 it was no more then 3 %.
As cotton industries developed in England, industrial
groups began worrying about imports form other
countries.
They pressurized the government to impose import duties
on cotton textiles
At the same time industrialists persuaded the East India
Company to sell British manufacturers in Indian markets
as well.
By the 1850 cotton piece goods constituted over 31 per
cent of the value of Indian imports; and by the 1870s this
figure was over 50 per cent.
Problems faced by Cotton weavers in India
• Their export market collapsed, and the
local market shrank, being glutted with
Manchester imports. Imported goods were
so cheap that weavers could not easily
compete with them.
• By the 1860s, weavers could not get
sufficient supply of raw cotton of good
quality.
• As raw cotton exports from India
increased, the price of raw cotton shot up.
Weavers in India were starved of supplies
and forced the buy raw cotton at
exorbitant prices.
• By the end of the nineteenth century,
factories in India began production,
flooding the market with machine-goods.
• How could weaving industries possibly
survive ?
‘By the beginning of the 19th century, there was a long decline of
textile exports from India.’
• (i) Development of cotton industries in England : As cotton
industries developed in England, industrial group; began
worrying about imports from other countries. They
pressurised the government to impose import duties on
cotton textiles so that Manchester goods could sell in
Britain without facing any competition from outside.
• (ii) Growth of mills and falling demand :
• With growing mill and falling home demand British
industrialists persuaded the East India Company to sell
British manufactures in Indian markets as well.
• (iii) Two edge policy : To sell its manufactures in India East
India Company followed a two edged policy i.e. no taxes
on import; but high taxes on exports.
• (iv) Manchester goods in India : Cotton weavers and
small producer; in India thus faced two problems at the
same time, their export market collapsed and the local
market shrank, being glutted with Manchester imports.
Produced by machines at lower costs, the imported
cotton goods were so cheap that weavers could no:
easily compete with them.
• (v) Shortage of raw material : By the 1860;, weavers
faced a new problem. They could not get sufficient
supply of raw cotton of good quality When the American
Civil War broke out and cotton supplies from the US
were cut off. Britain turned to India. .As raw cotton
exports from India increased, the price of raw cotton
shot up. Weavers in India were starved of supplies and
forced to buy raw cotton at exorbitant prices. In this,
situation weaving could not pay.
Factories in India
• 1854: First cotton mill came up in Bombay
• 1855: The first jute mill came up; and another one in 1862
• 1860s: The Elgin mill was started in Kanpur
• 1861: The first cotton mill of Ahmadabad was set up
• 1874: The first spinning and weaving mill of Madras began production
• The first cotton mill in Bombay came up in 1854. By 1862 four mills were at work
with 94000 spindles and 2150 looms. Around the same time jute mills came up
in Bengal, the first being set up in 1855. In North India, the Elgin Mill was started
in Kanpur in the 1860s, and a year later the first cotton mill of Ahmedabad was
set up. By 1874, the first spinning and weaving mill of Madras began production.
The Early Entrepreneurs
• The British in India began exporting opium to China and took tea
from China to England. Many Indians participated in this trade by
providing finance, procuring supplies and shipping consignments.
• In Bengal, Dwarkanath Tagore made his fortune in the China trade
and established six joint-stock companies in the 1830s and 1840s.
• In Bombay, Dinshaw Petit and Jamsetjee Nusserwanjee Tata built
huge industrial empires in India. They accumulated their initial
wealth partly from exports to China and partly from raw cotton
shipments to England.
• Merchants from Madras traded with Burma, Middle East and East
Africa.
• Other trading activities included carrying goods from one place to
another, banking, transferring funds between cities and financing
traders.
• However, Indian traders were barred from trading with Europe in
manufactured goods and had to export raw materials and food
grains required by the British. They were also gradually edged out
of the shipping business.
Dwarkanath Tagore Dinshaw Petit Jamsetjee Nusserwanjee Tata Seth Hukumchand
From the late eighteenth century, British in India began exporting opium to China, many
Indians became junior players in this trade, providing finance, procuring supplies , and
shipping consignments.
Having earned through trade, some of these businessmen had visions of developing
industrial enterprises in India.
In Bengal, Dwarkanath Tagore set up six joint-stock companies in the 1830s and 1840s.
In Bombay, Parsis like Dinshaw Petit and Jamsetjee Nusserwanjee Tata built huge
industrial empires, Seth Hukumchand set up the first Indian jute mill in Calcutta in 1917.
So did the father as well as grandfather of the famous industrialist G.D.Birla.
How the Early Entrepreneurs accumulated their Capital
• Some merchants from Madras traded with Burma, other had links
with the Middle East and East Africa.
• Other commercial groups operated within India, carrying goods from
one place to another, banking money, transferring funds between
cities and financing traders.
• Hurdles in the path of Indian Entrepreneurs
• As colonial control over Indian trade tightened, the space within
which Indian merchants could function became increasingly limited.
• They were barred from trading with Europe in manufacturing goods,
and had to export mostly raw material and food grains.
• European Managing Agencies controlled a large sector of Indian
industries. These agencies mobilized capital, set up joint-stock
companies and managed them.
• The European merchant-industrialists had their own chambers of
commerce which Indian businessmen were not allowed to join.
First cotton mill in Bombay
Workers - Where Did they Come From ?
• In most industrial regions, workers came from the nearby districts
• The job-seekers were always more than the jobs available.
• Peasants and artisans who found no work in the village went to the industrial
centers in search of work. Most often mill workers moved between the village
and the city, returning to their village homes during harvests and festivals.
Workers travelled great distances in the hope of work in the mills. From the
United Provinces, they went to work in the textile mills of Bombay and in the jute
mills of Calcutta.
• Jobber
• Getting jobs was always difficult. The numbers seeking work were always more
then the jobs available. Entry into the mills was also restricted.
• Industrialists employed a jobber for getting new recruits.
• He got people from his village, ensured them jobs, helped them settle in the city
and provided them money in times of crisis.
The Peculiarities of Industrial Growth
• The European Managing Agencies established tea and coffee
plantations, acquiring land at cheap rates from the colonial governments.
They also invested in mining, indigo and jute.
• Since yarn was not an important part of British imports into India, the
early cotton mills in India produced coarse cotton yarn rather than fabric.
The yarn produced in Indian spinning mills was used by handloom weavers
in India or exported to China.
• Indian businessmen avoided competing with Manchester goods, produced
coarse cotton yearn rather than fabric, yarn produced in Indian spinning
mills was used by handloom weavers in India or exported to China.
• Nationalists during the Swadeshi movement mobilized people to boycott
foreign cloth.
 When the Swadeshi movement gathered momentum, Industrial groups
organized themselves to protect their collective interests, pressurizing
the government to increase tariff protection and grant other concessions.
• From 1906, the export of Indian yarn to China declined since produce
from Chinese and Japanese mills flooded the Chinese market.
• 1900 and 1912: Cotton piece goods production in India
doubled
• With British mills busy with war production to meet the needs
of the army, Manchester imports into India declined.
• As the war prolonged, Indian factories were called upon to
supply war needs including jute bags, cloth for army uniforms,
tents and leather boots, horse and mule saddles and a host of
other items.
• Industrial production boomed owing to the increase in the
working hours and the establishment of new factories.
• Unable to modernize and compete with the US, Germany and
Japan, the British economy crumbled after the war.
• Cotton production collapsed and exports of cotton cloth from
Britain fell dramatically.
• Within the colonies, local industries substituted the foreign
manufactures and captured the home market.
Impact of First World War on Indian Industries
With British mills busy with war production to
meet the needs of the army, Indian mills had a
vast home market to supply.
As the demand in England went up, Indian
factories were called upon to supply war needs.
New factories were set up and old ones ran
multiple shifts. Many new workers were
employed and everyone was made to work longer
hours. Over the years industrial production
boomed.
After the war, Manchester could never recapture
its old position in the Indian market. Cotton
production collapsed and exports of cotton cloth
from Britain fell dramatically.
Within the colonies, local industrialists gradually
consolidated their position, substituting foreign
manufacturers and capturing the home market.
By the first decade of the 20th century, a series of changes affected the pattern
of industrialisation in India.
• (i) Swadeshi and Boycott Movements: The launching of Swadeshi and
Boycott Movements after the Partition of Bengal provided impetus to Indian
industries. There was an increase in the demand of Indian goods, especially
of clothes.
• (ii) Industrial groups : Industrial groups had also organised themselves to
protect their collective interests, pressurising the government to increase
tariff, the protection, and grant other concessions.
• (iii) Decline of exports to China : From 1906. Moreover, the export of Indian
yarn to China declined since produce from Chinese and Japanese mills had
flooded the Chinese markets.
Before and After the First World War
• i) The early cotton mills in India produced coarse cotton yam rather than fabric. Only
imported yam was of the superior variety,
• (ii) By the first decade of the 20th century, a series of changes affected the pattern of
industrialisation. Industrialists in India began shifting from yam to cloth production.
• (iii) Till the First World War. industrial growth was slow. The war created a dramatically new
situation.
• After the First World War :
• (i) With British mills busy with war production to meet the needs of the army. Manchester
imports into India declined. Suddenly. Indian mills had a vast home marker to supply.
• (ii) As the war prolonged. Indian factories were called upon to supply war needs e.g.. jute
bags, cloth for army uniforms, tents, leather boots, etc.
• (iii) New factories were set up and old one; ran multiple shifts Over the war years industrial
production boomed.
• (iv) After the war. local industrialists gradually consolidated their position. Substituting
foreign manufactures and capturing the home market.
How did the World War prove to be a boon to the Indian
Industries ?
• (i) Decline of Manchester : With British mills busy with war
production to meet the needs of the army. Manchester imports into
India declined.
• (ii) Increase in demand : With the decline of imports suddenly.
Indian mills had a vast home market to supply.
• (iii) Demand from army : As the War prolonged. Indian factories
were called upon to supply war need;i.e.. jute bags, doth for the
army uniforms, tents and leather boots, horse and mule saddles,
and a host of other items.
• (iv) New factories : New factories were set up. and
old ones ran multiple shifts. Many new workers were
employed, and everyone was made to work for longer
hours. Over the war years, industrial production
boomed.
• (v) Downfall of British industry and boon for home
industry : After the war Manchester could never
recapture its old position in the Indian market. Unable
to modernise and compete with the US. Germany and
Japan, the economy of Britain crumbled after the war.
Cotton production collapsed and exports of cotton
cloth from Britain fell dramatically. Within the
colonies, local industrialists gradually consolidated
their position, substituting foreign manufactures and
capturing the home market.
Small-scale Industries Predominate
While factory industries grew steadily after the war, large industries formed only a
small segment of the economy, small-scale production continued to predominate.
Only a small proportion of the total industrial labor force worked in registered
factories, the rest worked in small workshops and household units.
Handicrafts production actually expanded in the twentieth century. While cheap
machine-made thread wiped out the spinning industry in the nineteenth century,
the weavers survived, despite problems. In the twentieth century, handloom cloth
production expanded steadily; almost trebling between 1900 and 1940.
By the second decade of the twentieth century we find weavers using looms with a
fly shuttle. This increased productivity per worker, speeded up production and
reduced labor demand.
Small-scale Industries
• Large industries formed only a small segment of the economy.
Most of them were located in Bombay and Bengal.
• Most of the workers worked in small workshops and household
units.
• While cheap machine-made thread wiped out the spinning
industry in the 19th century, the weavers survived. Handloom
cloth-production expanded steadily between 1900 and 1940.
• Technological changes and other small innovations made the
handloom cloth production rise. By the second decade of the
20th century, weavers used looms with a fly shuttle.
• Amongst weavers, some produced coarse cloth while others
wove finer varieties. The coarser cloth was bought by the poor
and its demand fluctuated violently along with the fluctuations
in their incomes. The finer ones were bought by the rich and its
demand was constant.
“Certain groups of weavers were in a better position than others to survive the
competition with mill industries.”
The coarser cloth was bought by the poor and its demand fluctuated violently. The
demand for the finer varieties bought by the well-to-do was more stable. The rich
could buy these even when the poor starved. Famines did not effect the sale of
Banarasi or Baluchari saris. Mills could not imitate specialized weaves. Saris with
woven borders, or the famous lungis and handerkerchiefs of Madras, could not be
easily displaced by mill production.
Weavers and other crafts people who continued to expand production through the
twentieth century, did not necessarily prosper. They lived hard lives and worked long
hours. But they were not simply remnants of past times in the age of factories. Their
life and labor was integral to the process of industrialization.
Benarasi Brocade Baluchari Sarees
How did small scale industries survive in India despite of
Industrialization?
• (i) Many started adopting new technology without excessively pushing up
costs. By the second decade of the 20th century most of the weavers were
using looms with a fly shuttle.
• (ii) The new technology increased productivity per worker, speeded up
production and reduced labour demand.
• (iii) Some weavers who wove fine varieties managed to survive as the
machine made products failed to attract rich and nobles. There were many
weavers who were producing specialised products like Banarasi or Baluchari
saris, lungis and handkerchiefs.
• (iv) Swadeshi movement launched by the Indian nationalists provided a
boost to handloom demand.
Market for Goods
• New consumers were created through advertisements.
Advertisements expanded the markets for products and shaped
a new consumer culture.
• The label was needed for making the name and the place of
manufacture and the name of the company familiar to the buyer.
• Images of Indian gods and goddesses were imprinted on
goods for making a foreign product familiar to the Indian
masses.
• Calendars were used for advertisements.
• Figures of important personages adorned advertisements and
calendars.
• Advertisements became a vehicle of the nationalist message
of Swadeshi.
Measures adopted by the producers in India to expand the market for their goods in the
19th century.
Advertisements made products appear
desirable and necessary. They try to shape
the minds of people and create new goods.
From the very beginning of the industrial
age, advertisements have played a part in
the expanding the markets for products,
and in shaping a new consumer culture.
When Manchester industrialists began selling cloth
in India, they put labels on the cloth bundles. When
buyers saw ‘MADE IN MANCHESTER’ written in bold
on the label, they were expected to feel confident
about buying the cloth. Labels also carried images
and were very often beautifully illustrated.
Images of Indian gods and goddesses regularly
appeared on these labels. It was as if the association
with gods gave divine approval the goods being sold,
was also intended to make the manufacture from a
foreign land appear somewhat familiar to Indian
people.
By the late19th century, manufacturers were
printing calendars to popularize their
products. Unlike newspapers and magazines,
calendars were used even by people who
could not read, they were hung in tea shops
and in poor people’s homes just as much as in
offices and middle class apartments.
Like the images of gods, figures of
important personages, of emperors and
nawabs, adorned advertisement and
calendars. The message : if you respect the
royal figure, then respect this product; when
the product was being used by kings, or
produced under royal command, its quality
could not be questioned.
When Indian manufacturers advertised the
nationalist message was clear and loud. If you
care for the nation then buy products that
Indians produce. Advertisements became a
vehicle of the nationalist message of swadeshi.
“Consumers are created through advertisement.”
• (i) Advertisement : Advertisements through newspapers, magazines,
hoarding; were the most important method used by the producers to
expand the market. It played a major role in expanding the markets,
and shaping a new consumer culture. Advertisements make products
appear desirable and necessary.
• (ii) Labelling : Labelling was another method used by the producers to
expand their market. When Manchester industrialists began selling
cloth in India, they cut labels on the cloth bundles.
• When buyers saw ‘MADE IN MANCHESTER’ written in bold on the
labels, they were expected to feel confident about buying the cloth.
• But labels did not only carry words and texts. They also carried
images, and were very often beautifully illustrated.
• (iii) Calendars : By the nineteenth century, manufacturers were printing
calendars to popularise their products. Unlike newspapers • and magazines,
calendars were used even by people, who could not read. They were hung in tea
shops and in poor people’s homes just as much as in offices and middle- class
apartments. Those, who hung the calendars had to see the advertisements, day
after day, through the year. Even in these calendars, images of gods and
goddesses were used to attract the consumers.
• (iv) Images of important personages : Along with the images of gods, figures of
important personages, of emperors and nawabs were also used. The message
very often seemed to say; if you respect the royal figure, then respect this
product; when the product was being used by kings, or produced under royal
command, its quality could not be questioned.
• (v) Advertisement by Indian producers :
Indian manufacturers were also using the same tactics. When Indian
manufacturers advertised, the nationalist message was clear and loud. If you care
for the nation, then buy products that Indians produce. Finally, advertisements
became a vehicle of the nationalist message of Swadeshi.
How are the advertisements of early
20th century different from modern
day advertisements?

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Age of Industrialization - Grade 10

  • 1. The age of Industrialization CHAPTER 5 HISTORY
  • 2. Scenario before inventions. • Major occupation of the people at that time was • Rearing animals and agriculture. – It was the AGRARIAN age • FEUDALISM AND ZAMINDARI SYSTEM PREVAILED. • Feudal Lords exploited the SERBS and Zamindars exploited the forced labourers or they were called beggars. • Explorations of new land routes led to Colonization and Imperialism • Colonial Masters used the resources in the colonised countries to earn profit and it was invested further to earn more profit. And this gave way to industrialization through capitalization. People who invested were called Capitalists. • The progress was rapid in some places and in some places it was slow.
  • 3. Before the Industrial Revolution • The period of industrialization before the first factories came up in Europe is termed as proto- industrialization. • There was large-scale industrial production for an international market not based on factories. It was controlled by merchants and the goods were produced by a vast number of producers working within their family farms and not in factories. • This period was marked by merchants from towns getting products made in villages.
  • 4. 17th and 18th century: • Merchants from the towns of Europe began moving to the countryside, supplying money to peasants and artisans, persuading them to produce for an international market. • Merchants offered advances for producing clothes for them at a time when open fields were disappearing and commons were being enclosed. Income from proto-industrial production supplemented their shrinking income from cultivation
  • 5.
  • 6. WHY DID THE MERCHANTS TURN TO THE VILLAGES? • There were powerful trade and craft guilds in urban areas. These associations controlled competition and prices and prevented entry of a new player in the market. Because of them, it was difficult for new merchants to set business in towns. • Guilds Associations of producers that trained craftspeople, maintained control over production, regulated competition and prices and restricted the entry of new people into the trade. Rulers granted different guilds the monopoly right to produce and trade in specific products.
  • 7.
  • 8. New Merchants turned to the countryside With the expansion of world trade and the acquisition of colonies in different parts of the world, the demand for goods began growing. But merchants could not expand production within towns. This was because here urban crafts and trade guilds were powerful. It was very difficult for new merchants to set up business in towns. So they turned to the countryside.
  • 9. Artisans at countryside were willing to work for the merchants Open fields and commons were disappearing Cottagers and poor peasants had to now look for alternative sources of income. When merchants offered advances, peasants households eagerly agreed. This income supplemented their shrinking income from cultivation.
  • 10. Relationship developed between the town and the countryside Merchants were based in towns. A merchant clothier in England purchased wool from a wool stapler, and carried it to the spinners; the yarn that was spun was taken in subsequent stages of production to weaves, fullers and then to dyers. The finishing was done in London before the export merchant sold the cloth in the international market.
  • 11. Reasons for large scale production being carried out in the countryside and not in factories: (1) Huge demand: The world trade expanded at a very fast rate during the 17th and the 18th centuries. The acquisition of colonies was also responsible for the increase in demand. The town producers failed to produce the required quantity. (2)Powerful town producers. • -The town producers were very powerful. • -The producers could not expand the production at will. This was because in the towns, urban crafts and trade guilds were powerful. These were associations of producers that trained craftspeople, maintained control over production, regulated competition and prices, and restricted the entry of new people within the trade.
  • 12. • (3) Monopoly rights: The rulers granted different guilds the monopoly right to produce and trade in specific products, it was therefore difficult for new merchants to set up business in towns. So they turned to the countryside. • (4) New economic situation in the countryside: Open fields were disappearing in the countryside and the commoners were being enclosed. Cottagers and poor peasants who were earlier depended on common lands became jobless. So when the merchants came around and offered advances to produce, peasants’ households eagerly agreed.
  • 13. Why did the peasants agree to accept advances made by the merchants to produce goods? • (i) Disappearing open field system: In the countryside, the open field system was prevailing i.e., land was free and anyone could use it for production. But as the population increased, the open field system started disappearing. The rich landlords started enclosing the open fields. • (ii) Cottagers and poor peasants: They had earlier depended on common lands for their survival, gathering the firewood, berries, vegetables, hay and straw. Now they had to look for alternative sources of income. Many had tiny plots of land which could not provide work for all members of the household.
  • 14. • (iii) Small fields i As most of the land was acquired by the rich landlords, the poor had tiny plots of land which could not provide work for all the members of the household. So when merchants came around, and offered advances to produce goods for them, peasant households eagerly agreed. • (iv) Full utilisation of family labour resources: By working for the merchants, the poor peasants and the artisans could continue to remain in the countryside, and cultivate their small plots. • (v) Income : Income from proto-industrial production supplemented their shrinking income from cultivation. It also allowed them a fuller use of their family labour resources.
  • 15. • Answer the following questions. • 1. What are guilds? • 2. Define fuller, stapler. • 3. What do you mean by proto industrialization? • 4. Why were the merchants not able to expand production within the towns of England? • 5. Why did the people of the rural side accept the offers made by the merchants?
  • 17. The Coming Up of the Factory • 1730s: The earliest factories in England came up. • First symbol of the new era was cotton. • Inventions in the 18th century increased the efficacy of each step of production (carding, twisting, spinning and rolling). • The output per worker also rose. • Richard Arkwright invented the cotton mill. • Mill production of cotton started, which allowed a more careful supervision over the production process. • Cotton became the leading sector in the first phase of industrialization.
  • 18. The first symbol of the new era was cotton. • Its production boomed in the late nineteenth century, which was linked to a number of changes within the process of production. A series of inventions in the eighteenth century increased the efficacy of each step of the production process. Richard Arkwright created the cotton mill. The costly new machines could be purchased, set up and maintained in the mill. • When all the processes were brought together under one roof and management, it allowed a more careful supervision over the production process, a watch over quality, and the regulation of labour. • It was called FACTORY. • In the early nineteenth century, factories increasingly became an intimate part of the English landscape.
  • 19. . First cotton mill in Lancashire, England Industrial Manchester by M. Jackson, 1857 Richard Arkwright’s cotton mill
  • 20. The Pace of Industrial Change • Cotton was the leading sector, up to the 1840s. • After that the iron and steel industry led the way. • The expansion of railways in England and its colonies rapidly increased the demand for iron and steel. • The new, technologically advanced industrial sectors could not easily displace the traditional industries. • Textiles were still produced within domestic units and not in factories. • The high cost of machines and the uncertainty of their performance made technological changes slow. • Merchants and industrialists were cautious about accepting and using the new technology. • 1781: James Watt improved the steam engine produced by Newcomen and patented the new engine.
  • 21. The Pace of Industrial Change • The new industries could not easily displace traditional industries. • At the end of the nineteenth century, less than 20 per cent of the total workforce was employed in technologically advanced industrial sectors. • The pace of change in the ‘traditional’ industries was not set by steam-powered cotton or metal industries, but they did not remain entirely stagnate either. • Seemingly ordinary and small innovations were the basis of growth in many non-mechanized sectors. • New technology was expensive and merchants and industrialists were cautious about using it. • The machines often broke down and repair was costly. • At the beginning of the nineteenth century, there were no more than 321 steam engines all over England. • Steam engines were not used in any of the other industries till much later in the century.
  • 22.
  • 23. A fitting shop at railway works in England Spinning factory in 1830
  • 24. Hand Labour and Steam Power Industrialists initially were not much interested in mechanization because – Industrialists had no problem of labor shortage or high wage costs. They did not want to introduce machines that got rid of human labor and required large capital investment. In industries where production fluctuated with the season, industrialists usually preferred hand labor, employing workers for the season.
  • 25. • Machines were oriented to producing uniforms, standardized goods for mass market. • But the demand in the market was often for goods with intricate designs and specific shapes. • These required human skill, not mechanical technology. • Handmade products came to symbolize refinement and class. • They were better finished, individually produced, and carefully designed. • Machine made goods were for export to the colonies.
  • 26. Importance of Hand Labour • Introduction of machines required large capital investment. Hence, cheap labour was preferred over the use of machines. • Manual labour was also preferred in the industries where production fluctuated with seasons. • Goods with intricate designs and specific shapes were in great demand in the European markets. • This was possible only with hand labour and not machine outputs. • The aristocrats and the bourgeoisie in Victorian Britain preferred the refined and carefully handmade products; machine made goods were for the colonies.
  • 27.
  • 28. Life of the Workers – THE PROBLEMS FACED • Large scale migrations to towns and cities from countryside in search of jobs. • Job itself was difficult to get. People had to have recommendations. • Many job-seekers had to wait weeks, spending nights under bridges or in night shelters. Some stayed in Night Refuges that were set up by private individuals; others went to the Casual Wards maintained by the Poor Law authorities. • Workers became jobless after the busy season of work got over. • Seasonality of work in many industries meant prolonged periods without work. After the busy season was over, the poor were on the streets again. • Some returned to the countryside when the demand for labour in the rural areas opened up. • They either returned to the countryside or looked for odd jobs, which till the mid-nineteenth century were difficult to find.
  • 29. • The supply of workers were high and opportunity of jobs were less. This led to low wages. • The period was also marked by the depression after the first world war. • At the best of times till the mid-nineteenth century, about 10 per cent of the urban population were extremely poor, which went up to anything between 35 and 75 per cent in different regions. • The fear of unemployment made workers hostile to the introduction of new technology. • When the Spinning Jenny was introduced in the woolen industry, women who survived on hand spinning began attacking the new machines. • After 1840 building and construction activities intensified, storage facilities were needed, roads for transporting , railway network grew, trading by ships all created new job opportunities.
  • 30.
  • 31. Answer these questions. • 1. Which was the first industry of production in Britain? • 2. Why was the steam engine slow to be accepted by industries? • 3. Why did the people not like machine-made goods?
  • 32. Home Assignment: • Read the portion on life of the workers. • Answer the following questions. • 1. Why did the workers fear the Spinning Jenny? • 2. What kind of life did the workers lead during the Industrial revolution? • 3. How was infrastructure developed after the 1840s?
  • 33. Industrialization in the Colonies The Age of Indian Textiles • Before the age of machine industries, silk and cotton goods from India dominated the international market in textiles. • Coarser cottons were produced in many countries, but the finer varieties often came from India. • Armenian and Persian merchants took goods from Punjab to Afghanistan, Eastern Persia and Central Asia. • Bales of fine textiles were carried on camel back via the north- west frontier, through mountain passes and across deserts. • A vibrant sea trade operated through the main pre-colonial ports. • Surat on the Gujarat coast connected India to the Gulf and Red Sea Ports; Masulipatam on the Coromandal coast and Hoogly in Bengal had trade links with Southeast Asian ports.
  • 34. Surat Port Textiles carried on camel back via the north-west frontier
  • 35.
  • 36. • A variety of Indian merchants and bankers were involved in this network of export trade, financing production, carrying goods and supplying exporters. • They gave advances to the weavers, procured the woven cloth from weaving villages and carried the supply to the ports. • A complex and complete market:- The whole process of trade basically involved three steps : • • Financing production • • Carrying or transporting goods • • Supplying goods to the exporters • Supply merchant; linked the port towns to the inland regions. They gave advances to weavers, procured the woven cloth from weaving villages, and carried the supply to the ports. At the port, the big shippers and export merchants had brokers, who negotiated the price and bought goods from the supply merchants operating inland.
  • 37. ‘The port of Surat and Hoogly declined by the end of the I8th century.’ Explain. • (i) Most of the European companies had huge resources, so it was very difficult for the Indian merchants and traders to face the competition. • (ii) The European companies were gaining power by securing a variety of concessions from the local courts. • (iii) Some of the companies got the monopoly rights to Dade. • All this resulted in the decline of the old ports of Surat and Hoogly through which local merchants had operated. Exports from these ports fell dramatically, the credit that had financed the earlier trade began drying up. and the local bankers slowly went bankrupt. • (iv)In the last years of the seventeenth century, the gross value of trade that passed through Surat had been 16 million. By the 1740s. it had slumped to 3 million rupees. • (v) With the passage of time. Surat and Hoogly decayed. Bombay (Mumbai), and Calcutta (Kolkata) grew.
  • 38. Decline of the Old Ports and the Rise of the New Ones The European companies gradually gained power. This resulted in a decline of the old ports of Surat and Hoogly through which local merchants had operated. Exports from these ports fell dramatically, the credit that had financed the earlier trade began drying up and the local bankers slowly went bankrupt. While Surat and Hoogly decayed, Bombay and Calcutta grew. This shift from the old ports to the new ones was an indicator of the growth of colonial power. Trade through the new ports came to be controlled by European companies, and was carried in European ships.
  • 39. • The European companies gradually gained power and monopoly rights. • Trade through the new ports of Calcutta and Mumbai came to be controlled by the European companies. • By the 1750 this network, controlled by Indian merchants, was breaking down.
  • 40. Competitors of cotton trade in India
  • 41. Plight of Weavers- What Happened to Weavers ? • Ways adopted by Company officials to ensure regular supplies of Cotton and Silk textiles for the Indian weavers – • Once the East India Company established political power, it could assert a monopoly right to trade. It proceeded to develop a system of management and control that would eliminate competition, control costs and ensure regular supplies of cotton and silk goods. This was done through a series of steps – • The company tried to eliminate the existing traders and brokers by appointing a paid servant called the gomastha to supervise weavers, collect supplies, and examine the quality of cloth. • It prevented Company weavers from dealing with other buyers, by the system of advances. • Those who took advance, had to hand over the cloth they produced to the gomastha. They could not take it to any other trader.
  • 42. • Many weavers had small plots of land, which now they had to lease out to others and devote all their time to weaving. Weaving required the labor of the entire family. • Earlier supply merchants had a close relationship with the weavers, the gomasthas were outsiders, they acted arrogantly, marched into villages with sepoys and peons and punished weavers for delays in supply – often beating and flogging them. • Weavers lost the space to bargain for prices and sell to different buyers, the price now they received was miserably low and the loans they had accepted tied them to the company. • In many places, weavers deserted villages and migrated, weavers along with traders revolted, began refusing loans, closing down their workshops and taking to agricultural labours.
  • 43. Gomastha • A paid servant called the gomastha was appointed for supervising weavers, collecting supply and examining the quality of cloth. • The Company prevented the weavers from dealing with other buyers. • Once the order was placed, the weavers were given loans for purchasing raw material for production. • The produced cloth was to be handed over to the gomastha. • The new gomasthas had no social link with the village. • They acted arrogantly, marched into villages with sepoys and peons and punished weavers for delays in supply. • The price received by weavers from the Company was miserably low and the loans that they had accepted tied them to the Company. • In Carnatic and Bengal weavers deserted villages and migrated, setting up looms in other villages where they had some family relation. Elsewhere, the weavers along with the village traders revolted, opposing the Company and its officials. • Weavers began refusing loans, closing down their workshops and taking to agricultural labour
  • 44. Often there were reports of Clashes between weavers and gomasthas
  • 45. Plight of Weavers • The East India Company gained monopoly rights over the Indian textile trade. It tried to eliminate the existing traders and brokers connected with the cloth trade and established direct control over the weavers. • A paid servant called the gomastha was appointed for supervising weavers, collecting supply and examining the quality of cloth. • The Company prevented the weavers from dealing with other buyers. • Once the order was placed, the weavers were given loans for purchasing raw material for production. The produced cloth was to be handed over to the gomastha.
  • 46. • The new gomasthas had no social link with the village. They acted arrogantly, marched into villages with sepoys and peons and punished weavers for delays in supply. • The price received by weavers from the Company was miserably low and the loans that they had accepted tied them to the Company. • In Carnatic and Bengal weavers deserted villages and migrated, setting up looms in other villages where they had some family relation. Elsewhere, the weavers along with the village traders revolted, opposing the Company and its officials. • Weavers began refusing loans, closing down their workshops and taking to agricultural labour.
  • 47. The establishment of political power by the East India Company resulted in ruination of the Indian weavers. • (i) Monopoly right : Once the East India Company established political power, it asserted a monopoly right to trade • (ii) New system : After establishing monopoly over trade it proceeded to develop a system of management and control that would eliminate competition, control costs, and ensure regular supplies of cotton and silk goods. This it did through a series of steps. • (iii) Appointing Gomasthas: The Company tried to eliminate the existing traders and brokers connected with the cloth trade, and establish a more direct control over the weavers. It appointed a paid servant called the Gomostha to supervise weavers, collect supplies and examine the quality of cloth.
  • 48. • (iv) System of advances : To have a direct control over the weavers, the company- started the system of advances. Once an order was placed, the weavers were given loans to purchase the raw material for their production. Those, who took loans had to hand over the cloth they produced to the Gomastha. They could not take it to any other trader. • (v) Use of power : The places where the weaver refused to cooperate the Company used its police. At many places weaver were often beaten and flogged for delays in supply.
  • 49. Why the system of advances proved harmful for the weavers? • (i) No chance of bargaining: The weavers lost any chance of bargaining. • (ii) Leasing of land: Most of the weavers had to lease out the land and devote all their time to weaving. Weaving in fact, came to absorb the labour of the entire family. • (iii) Dependency for food on others: Most of the weavers after losing their land became dependent on others for the food supplies. • (iv) Clashes with Gomasthas: The new Gomasthas were outsiders, with no long term social link with the village. So they acted arrogantly, marched into villages with the police, and punished weavers for delay in supply. • So. there were reports of clashes between weavers and Gomasthas.
  • 50. ANSWER THE FOLLOWING. • 1. What were the causes of decline of the old ports of India? • 2. Enumerate the results of the clashes between gomasthas and weavers later on. • 3.What steps were taken by East India Company to control the market of cotton and silk goods?
  • 51. British Textiles in India • The British industrialists pressurized the government to impose duties on cotton textiles so that Manchester goods could sell in Britain without any outside competition. • The industrialists also persuaded the East India Company for selling the British manufactures in the Indian markets. • Exports of British cotton goods increased dramatically in the early 19th century. • The export market of the Indian cotton weavers collapsed and the local market shrank, being glutted with cheap Manchester imports. • The weavers could not get sufficient supply of good quality raw cotton. Weavers in India were starved of supplies and forced to buy raw cotton at exorbitant prices. • By the end of the 19th century, factories in India began production, flooding the markets with machine-made goods. Consequently, the weaving industry decayed and died.
  • 52. Manchester Comes to India By the beginning of the nineteenth century, textile exports from India declined. In 1811-12 piece goods accounted for 33 % of India’s exports; by 1850-51 it was no more then 3 %. As cotton industries developed in England, industrial groups began worrying about imports form other countries. They pressurized the government to impose import duties on cotton textiles At the same time industrialists persuaded the East India Company to sell British manufacturers in Indian markets as well. By the 1850 cotton piece goods constituted over 31 per cent of the value of Indian imports; and by the 1870s this figure was over 50 per cent.
  • 53. Problems faced by Cotton weavers in India • Their export market collapsed, and the local market shrank, being glutted with Manchester imports. Imported goods were so cheap that weavers could not easily compete with them. • By the 1860s, weavers could not get sufficient supply of raw cotton of good quality. • As raw cotton exports from India increased, the price of raw cotton shot up. Weavers in India were starved of supplies and forced the buy raw cotton at exorbitant prices. • By the end of the nineteenth century, factories in India began production, flooding the market with machine-goods. • How could weaving industries possibly survive ?
  • 54. ‘By the beginning of the 19th century, there was a long decline of textile exports from India.’ • (i) Development of cotton industries in England : As cotton industries developed in England, industrial group; began worrying about imports from other countries. They pressurised the government to impose import duties on cotton textiles so that Manchester goods could sell in Britain without facing any competition from outside. • (ii) Growth of mills and falling demand : • With growing mill and falling home demand British industrialists persuaded the East India Company to sell British manufactures in Indian markets as well. • (iii) Two edge policy : To sell its manufactures in India East India Company followed a two edged policy i.e. no taxes on import; but high taxes on exports.
  • 55. • (iv) Manchester goods in India : Cotton weavers and small producer; in India thus faced two problems at the same time, their export market collapsed and the local market shrank, being glutted with Manchester imports. Produced by machines at lower costs, the imported cotton goods were so cheap that weavers could no: easily compete with them. • (v) Shortage of raw material : By the 1860;, weavers faced a new problem. They could not get sufficient supply of raw cotton of good quality When the American Civil War broke out and cotton supplies from the US were cut off. Britain turned to India. .As raw cotton exports from India increased, the price of raw cotton shot up. Weavers in India were starved of supplies and forced to buy raw cotton at exorbitant prices. In this, situation weaving could not pay.
  • 56. Factories in India • 1854: First cotton mill came up in Bombay • 1855: The first jute mill came up; and another one in 1862 • 1860s: The Elgin mill was started in Kanpur • 1861: The first cotton mill of Ahmadabad was set up • 1874: The first spinning and weaving mill of Madras began production • The first cotton mill in Bombay came up in 1854. By 1862 four mills were at work with 94000 spindles and 2150 looms. Around the same time jute mills came up in Bengal, the first being set up in 1855. In North India, the Elgin Mill was started in Kanpur in the 1860s, and a year later the first cotton mill of Ahmedabad was set up. By 1874, the first spinning and weaving mill of Madras began production.
  • 57. The Early Entrepreneurs • The British in India began exporting opium to China and took tea from China to England. Many Indians participated in this trade by providing finance, procuring supplies and shipping consignments. • In Bengal, Dwarkanath Tagore made his fortune in the China trade and established six joint-stock companies in the 1830s and 1840s. • In Bombay, Dinshaw Petit and Jamsetjee Nusserwanjee Tata built huge industrial empires in India. They accumulated their initial wealth partly from exports to China and partly from raw cotton shipments to England. • Merchants from Madras traded with Burma, Middle East and East Africa. • Other trading activities included carrying goods from one place to another, banking, transferring funds between cities and financing traders. • However, Indian traders were barred from trading with Europe in manufactured goods and had to export raw materials and food grains required by the British. They were also gradually edged out of the shipping business.
  • 58. Dwarkanath Tagore Dinshaw Petit Jamsetjee Nusserwanjee Tata Seth Hukumchand From the late eighteenth century, British in India began exporting opium to China, many Indians became junior players in this trade, providing finance, procuring supplies , and shipping consignments. Having earned through trade, some of these businessmen had visions of developing industrial enterprises in India. In Bengal, Dwarkanath Tagore set up six joint-stock companies in the 1830s and 1840s. In Bombay, Parsis like Dinshaw Petit and Jamsetjee Nusserwanjee Tata built huge industrial empires, Seth Hukumchand set up the first Indian jute mill in Calcutta in 1917. So did the father as well as grandfather of the famous industrialist G.D.Birla.
  • 59. How the Early Entrepreneurs accumulated their Capital • Some merchants from Madras traded with Burma, other had links with the Middle East and East Africa. • Other commercial groups operated within India, carrying goods from one place to another, banking money, transferring funds between cities and financing traders. • Hurdles in the path of Indian Entrepreneurs • As colonial control over Indian trade tightened, the space within which Indian merchants could function became increasingly limited. • They were barred from trading with Europe in manufacturing goods, and had to export mostly raw material and food grains. • European Managing Agencies controlled a large sector of Indian industries. These agencies mobilized capital, set up joint-stock companies and managed them. • The European merchant-industrialists had their own chambers of commerce which Indian businessmen were not allowed to join.
  • 60. First cotton mill in Bombay
  • 61. Workers - Where Did they Come From ? • In most industrial regions, workers came from the nearby districts • The job-seekers were always more than the jobs available. • Peasants and artisans who found no work in the village went to the industrial centers in search of work. Most often mill workers moved between the village and the city, returning to their village homes during harvests and festivals. Workers travelled great distances in the hope of work in the mills. From the United Provinces, they went to work in the textile mills of Bombay and in the jute mills of Calcutta. • Jobber • Getting jobs was always difficult. The numbers seeking work were always more then the jobs available. Entry into the mills was also restricted. • Industrialists employed a jobber for getting new recruits. • He got people from his village, ensured them jobs, helped them settle in the city and provided them money in times of crisis.
  • 62. The Peculiarities of Industrial Growth • The European Managing Agencies established tea and coffee plantations, acquiring land at cheap rates from the colonial governments. They also invested in mining, indigo and jute. • Since yarn was not an important part of British imports into India, the early cotton mills in India produced coarse cotton yarn rather than fabric. The yarn produced in Indian spinning mills was used by handloom weavers in India or exported to China. • Indian businessmen avoided competing with Manchester goods, produced coarse cotton yearn rather than fabric, yarn produced in Indian spinning mills was used by handloom weavers in India or exported to China. • Nationalists during the Swadeshi movement mobilized people to boycott foreign cloth.  When the Swadeshi movement gathered momentum, Industrial groups organized themselves to protect their collective interests, pressurizing the government to increase tariff protection and grant other concessions. • From 1906, the export of Indian yarn to China declined since produce from Chinese and Japanese mills flooded the Chinese market.
  • 63. • 1900 and 1912: Cotton piece goods production in India doubled • With British mills busy with war production to meet the needs of the army, Manchester imports into India declined. • As the war prolonged, Indian factories were called upon to supply war needs including jute bags, cloth for army uniforms, tents and leather boots, horse and mule saddles and a host of other items. • Industrial production boomed owing to the increase in the working hours and the establishment of new factories. • Unable to modernize and compete with the US, Germany and Japan, the British economy crumbled after the war. • Cotton production collapsed and exports of cotton cloth from Britain fell dramatically. • Within the colonies, local industries substituted the foreign manufactures and captured the home market.
  • 64.
  • 65. Impact of First World War on Indian Industries With British mills busy with war production to meet the needs of the army, Indian mills had a vast home market to supply. As the demand in England went up, Indian factories were called upon to supply war needs. New factories were set up and old ones ran multiple shifts. Many new workers were employed and everyone was made to work longer hours. Over the years industrial production boomed. After the war, Manchester could never recapture its old position in the Indian market. Cotton production collapsed and exports of cotton cloth from Britain fell dramatically. Within the colonies, local industrialists gradually consolidated their position, substituting foreign manufacturers and capturing the home market.
  • 66. By the first decade of the 20th century, a series of changes affected the pattern of industrialisation in India. • (i) Swadeshi and Boycott Movements: The launching of Swadeshi and Boycott Movements after the Partition of Bengal provided impetus to Indian industries. There was an increase in the demand of Indian goods, especially of clothes. • (ii) Industrial groups : Industrial groups had also organised themselves to protect their collective interests, pressurising the government to increase tariff, the protection, and grant other concessions. • (iii) Decline of exports to China : From 1906. Moreover, the export of Indian yarn to China declined since produce from Chinese and Japanese mills had flooded the Chinese markets.
  • 67. Before and After the First World War • i) The early cotton mills in India produced coarse cotton yam rather than fabric. Only imported yam was of the superior variety, • (ii) By the first decade of the 20th century, a series of changes affected the pattern of industrialisation. Industrialists in India began shifting from yam to cloth production. • (iii) Till the First World War. industrial growth was slow. The war created a dramatically new situation. • After the First World War : • (i) With British mills busy with war production to meet the needs of the army. Manchester imports into India declined. Suddenly. Indian mills had a vast home marker to supply. • (ii) As the war prolonged. Indian factories were called upon to supply war needs e.g.. jute bags, cloth for army uniforms, tents, leather boots, etc. • (iii) New factories were set up and old one; ran multiple shifts Over the war years industrial production boomed. • (iv) After the war. local industrialists gradually consolidated their position. Substituting foreign manufactures and capturing the home market.
  • 68. How did the World War prove to be a boon to the Indian Industries ? • (i) Decline of Manchester : With British mills busy with war production to meet the needs of the army. Manchester imports into India declined. • (ii) Increase in demand : With the decline of imports suddenly. Indian mills had a vast home market to supply. • (iii) Demand from army : As the War prolonged. Indian factories were called upon to supply war need;i.e.. jute bags, doth for the army uniforms, tents and leather boots, horse and mule saddles, and a host of other items.
  • 69. • (iv) New factories : New factories were set up. and old ones ran multiple shifts. Many new workers were employed, and everyone was made to work for longer hours. Over the war years, industrial production boomed. • (v) Downfall of British industry and boon for home industry : After the war Manchester could never recapture its old position in the Indian market. Unable to modernise and compete with the US. Germany and Japan, the economy of Britain crumbled after the war. Cotton production collapsed and exports of cotton cloth from Britain fell dramatically. Within the colonies, local industrialists gradually consolidated their position, substituting foreign manufactures and capturing the home market.
  • 70. Small-scale Industries Predominate While factory industries grew steadily after the war, large industries formed only a small segment of the economy, small-scale production continued to predominate. Only a small proportion of the total industrial labor force worked in registered factories, the rest worked in small workshops and household units. Handicrafts production actually expanded in the twentieth century. While cheap machine-made thread wiped out the spinning industry in the nineteenth century, the weavers survived, despite problems. In the twentieth century, handloom cloth production expanded steadily; almost trebling between 1900 and 1940. By the second decade of the twentieth century we find weavers using looms with a fly shuttle. This increased productivity per worker, speeded up production and reduced labor demand.
  • 71. Small-scale Industries • Large industries formed only a small segment of the economy. Most of them were located in Bombay and Bengal. • Most of the workers worked in small workshops and household units. • While cheap machine-made thread wiped out the spinning industry in the 19th century, the weavers survived. Handloom cloth-production expanded steadily between 1900 and 1940. • Technological changes and other small innovations made the handloom cloth production rise. By the second decade of the 20th century, weavers used looms with a fly shuttle. • Amongst weavers, some produced coarse cloth while others wove finer varieties. The coarser cloth was bought by the poor and its demand fluctuated violently along with the fluctuations in their incomes. The finer ones were bought by the rich and its demand was constant.
  • 72. “Certain groups of weavers were in a better position than others to survive the competition with mill industries.” The coarser cloth was bought by the poor and its demand fluctuated violently. The demand for the finer varieties bought by the well-to-do was more stable. The rich could buy these even when the poor starved. Famines did not effect the sale of Banarasi or Baluchari saris. Mills could not imitate specialized weaves. Saris with woven borders, or the famous lungis and handerkerchiefs of Madras, could not be easily displaced by mill production. Weavers and other crafts people who continued to expand production through the twentieth century, did not necessarily prosper. They lived hard lives and worked long hours. But they were not simply remnants of past times in the age of factories. Their life and labor was integral to the process of industrialization. Benarasi Brocade Baluchari Sarees
  • 73. How did small scale industries survive in India despite of Industrialization? • (i) Many started adopting new technology without excessively pushing up costs. By the second decade of the 20th century most of the weavers were using looms with a fly shuttle. • (ii) The new technology increased productivity per worker, speeded up production and reduced labour demand. • (iii) Some weavers who wove fine varieties managed to survive as the machine made products failed to attract rich and nobles. There were many weavers who were producing specialised products like Banarasi or Baluchari saris, lungis and handkerchiefs. • (iv) Swadeshi movement launched by the Indian nationalists provided a boost to handloom demand.
  • 74.
  • 75.
  • 76. Market for Goods • New consumers were created through advertisements. Advertisements expanded the markets for products and shaped a new consumer culture. • The label was needed for making the name and the place of manufacture and the name of the company familiar to the buyer. • Images of Indian gods and goddesses were imprinted on goods for making a foreign product familiar to the Indian masses. • Calendars were used for advertisements. • Figures of important personages adorned advertisements and calendars. • Advertisements became a vehicle of the nationalist message of Swadeshi.
  • 77. Measures adopted by the producers in India to expand the market for their goods in the 19th century. Advertisements made products appear desirable and necessary. They try to shape the minds of people and create new goods. From the very beginning of the industrial age, advertisements have played a part in the expanding the markets for products, and in shaping a new consumer culture. When Manchester industrialists began selling cloth in India, they put labels on the cloth bundles. When buyers saw ‘MADE IN MANCHESTER’ written in bold on the label, they were expected to feel confident about buying the cloth. Labels also carried images and were very often beautifully illustrated.
  • 78. Images of Indian gods and goddesses regularly appeared on these labels. It was as if the association with gods gave divine approval the goods being sold, was also intended to make the manufacture from a foreign land appear somewhat familiar to Indian people. By the late19th century, manufacturers were printing calendars to popularize their products. Unlike newspapers and magazines, calendars were used even by people who could not read, they were hung in tea shops and in poor people’s homes just as much as in offices and middle class apartments.
  • 79. Like the images of gods, figures of important personages, of emperors and nawabs, adorned advertisement and calendars. The message : if you respect the royal figure, then respect this product; when the product was being used by kings, or produced under royal command, its quality could not be questioned. When Indian manufacturers advertised the nationalist message was clear and loud. If you care for the nation then buy products that Indians produce. Advertisements became a vehicle of the nationalist message of swadeshi.
  • 80. “Consumers are created through advertisement.” • (i) Advertisement : Advertisements through newspapers, magazines, hoarding; were the most important method used by the producers to expand the market. It played a major role in expanding the markets, and shaping a new consumer culture. Advertisements make products appear desirable and necessary. • (ii) Labelling : Labelling was another method used by the producers to expand their market. When Manchester industrialists began selling cloth in India, they cut labels on the cloth bundles. • When buyers saw ‘MADE IN MANCHESTER’ written in bold on the labels, they were expected to feel confident about buying the cloth. • But labels did not only carry words and texts. They also carried images, and were very often beautifully illustrated.
  • 81. • (iii) Calendars : By the nineteenth century, manufacturers were printing calendars to popularise their products. Unlike newspapers • and magazines, calendars were used even by people, who could not read. They were hung in tea shops and in poor people’s homes just as much as in offices and middle- class apartments. Those, who hung the calendars had to see the advertisements, day after day, through the year. Even in these calendars, images of gods and goddesses were used to attract the consumers. • (iv) Images of important personages : Along with the images of gods, figures of important personages, of emperors and nawabs were also used. The message very often seemed to say; if you respect the royal figure, then respect this product; when the product was being used by kings, or produced under royal command, its quality could not be questioned. • (v) Advertisement by Indian producers : Indian manufacturers were also using the same tactics. When Indian manufacturers advertised, the nationalist message was clear and loud. If you care for the nation, then buy products that Indians produce. Finally, advertisements became a vehicle of the nationalist message of Swadeshi.
  • 82. How are the advertisements of early 20th century different from modern day advertisements?