What led to economic drain and decline of the indian industries?

A; british industries began to see colonies like india as big markets for manufacturing products and the raw
materials began to be exported from india and the finished goods were imported to india.

Who was buying goods in india and selling them in european markets and was making the profit?
A; east india company or britain till the laat 18th century.

Dadabhai naroji was the first to acknowledge the poverty of india.

Through the drain theory british rule was exposed.
The process of disruption of traditional indian crafts and decline in national income has been referred to as
deindustrialisation of the indian economy.
The villages artisans such as weavers of coarse cloth,carpenters and smiths produced articles for domestic
purposes.
The specialized craftsmen in towns produced utililty and luxury goods both for domestic and international
markets.
The chief luxury items were calico and muslin. Textile products of wool and silk,metal works of iron and
steel,copper and brass,silvr amd gold wqere equally famous.

India had a long tradition of obtaining metal from rock and soil y the process of smelting. Iron was a popular
metal which the smelters woerkedd. Indian craftsman produced a very unique steel called wootz. WOOTZ
STEEL, was basically iron carburised with dried wood and green leaves uner controlled conditions. It was
known as ukku in kannada and urukku in tamil and malayalam.
ther e is a mention of ancient indian tradition of making steel in roman historian quintius curtis account
historiae aleandri magni.
Porus, the ruler of taxila gave 2 or half tons of woodz steel to alexander of macedon. The famous damascus
sword was made up of this steel.

Why did the indian steel industry crumble?

A; because of british imports of iron and steel from england in mid 19th century.

Trade with the european nations in the 17 th century was heavily balanced in favour of india due to the export of
large quantities of fine cotton and silk fabrics,spices,indigo, sugar,drugs,precious stones and various works of
craftsmanship and in exchange india got gold and silver.

The producers of goods were forced to supply goods forcefully tp the company at low prices.
During the 1757-1813 the east india companies objective was to buy maximum quantity of indian
manufactured goods at the cheapest rate so that the substaniall profits could be made by selling the goods in
britain or european countries.
British textile manufacturing at home imposed tariffs and bans on the import of the indian textiles. When the
charter act of 1813 opened the indian market for other traders also more machine made goods entered the
indian market.
The raw material was taken to britain and the goods manufactured there were sold in india.
Since the growth of indian factors was non existent before 1850 and 1860 and painfully slow
afterwards,craftsman and artisans had no choice but to turn into agriculture. This increasing pressure on
agriculture was one of the major cause of extreme poverty of india under british rule.

The british officials purchased deccan cotton in bulk and sold it to the weavers of bengal at very high rates.
Till 1813 indian textile industry was affected in two ways: 1) the company reduced the weavers to the status of
indentured labour,by forcing them to take an advance from the company and in 1798, the weavers were forced
to pay a penalty of 35% on the advance taken if they defaulted in supplying goods.
2)the british parliament imposed an increased consolidated duty on consumption of calicoes and muslins in
britain.

India ceased being an import of cotton cloth and became an importer of cloth and yarn while england stopped
imported cloth from india.
During the late 19th century the industries came up with plantatrion or machine industry.

PLANTATION INDUSTRY
Tea introduced in 19th centuryn went on to become the biggest plantation industry within a short span of time.
Indian tea became the leader of world tea market by early 20ie. It found its bigget market in england.

MACHINE BASED INDUSTRIES

It began in second half of 19th century the most important ones were cotton and jute industries.
Textile industries made a steady progress andjusr before the first ww,india ranked 4th amoung the leading
textiles producers of thw world.
Cotton mills were mostly set up at ahmedabad, bombay and mudras. The first cotton mill was set up at 1853 in
bombay.

HEAVY INDUSTRIES
Under jamshedji tata, the iron and steel industry took the shape of famous tata iron and steel company.