4.12 Economic Transformation of India

Economic Transformation of India

2020-04-27 15:04:45

  • Economic favouritism - Ex Tea plantation in Assam
  • Native investors ignored
  • Inland Emigration #Act 1859 made sure a steady supply of labour
  • Coal mining Br capital dominated

Role of Indian Investors/Industiralists

  • TISCO started produced 66% locally consumed steel
  • Ltd growth potential, no gov intervention
  • IN investors operated in sectors where risks to high or return too low
**Rajat Ray** : called it  imperial division of economic space

**Anand Yang** : these sectors provided profitable ground for indegenous bankers

Inter War Period Factors that Affected Industrial Enterprise

  • Tendency towards import substitution in consumer goods
  • Attention towards domestic market
  • Growth in internal trade
  • Shift of traditionally accumulated capital through trade
  • Moneylending
  • Outflow of foreign capital
  • @ Rupee collapsed Dec 1920 -> hurt importers, helped exporters, wartime tax, currency fluctuation, wartime boom collapsed in 1921-22 - slump in industry, unsold stocks, rising labour cost.
  • Cotton protection act 1930 raise cotton duties to non-B goods.
  • Artificially fixed rupee sterling -> Hilton Young Comm 1926

- **Sumit Sarkar** : 1930 depression created a groundswell opinion to participate in CDM
-  **Aditya Mukherjee** :  by 1944 the control of Indian capital in smaller industries was absolute
  • Indian controlled areas were Sugar, paper, cement, iron, steel, Also in finance, insurance, jute, mining, plantation.
  • They Consolidated their position in traditional areas like Cotton.

Organisations Formed

  1. Bengal National Chamber of commerce 1887
  2. Merchants Chamber Bombay 1907
  3. 1921 ASSOCHAM
  4. FICCI 1927

-   **Bipan Chandra** : Indian capitalist class had long term contradiction w/ imperialism, while retaining relationship of short term dependence on and accommodating w/ it
-   **Maria Misra** : attitude of B capitalist was insistent on their racial exclusivism and autonomy that hardened towards their IN counterpart
-   **Markovits** : participation of Businessmen was more complicated

PYQ

  1. Trace the industrial growth of British India after the First World War. How did the Government's tariff policy influence the growth? [1983, 60m]
  1. Identify the main features of industrial development in India from 1914 to 1947 with special reference to the emergence of a class of factory laborers. [1989, 60m]
  1. Identify the distinct stages of colonialism in India. How did these stages affect the Indian economy? [1991, 60m]
  • Refer Rajiv Ahir
  1. How do you account for the rise and growth of the Business enterprise in India during the first half of the 20th century? [1994, 60m]
  1. Economic changes in India from the late 1920s influenced the course of the country's politics. Elucidate. [1995, 60m]