Question

What do you understand by the term deindustrialization during the colonial rule? 

06 Jul 2022
Answer :
Word Count : 1092

The process of de-industrialisation is an economic change in which employment in the manufacturing sector declines due to various economic or political reasons. The decline in employment in manufacturing is also followed by the fall in the share of manufacturing value added in GDP. The process of de-industrialisation can be due to development and growth in the economy and it can also occur due to political factors. In other words, the term de-industrialisation means a general reduction in the industrial capacity and came into prevalence in India with the decline and collapse of the handicrafts industry by external competition from British-manufactured products during the 19th century.

The initial concept of Indian de-industrialisation was introduced by Sir William Bentinck who acted as the Governor-General of India between 1833 and 1835. His policy significantly impacted the cotton industry of India. The effect of British cotton industry on Indian cotton industry was originally presented by Karl Marx in Das Kapital.

The historical de-industrialisation processes observed in the British colonies such as India are said to be a product of colonial rule. The Industrial Revolution in Europe is followed by a significant decline in the artisan and manufacturing activities in European colonies in Asia such as India.

Prior to the colonisation of India, the country had reached significant fineness in the production of luxury products in the form of handicrafts. These luxury goods consisted of cotton, silk, and ivory which had a significant market in Europe.[4] Before mercantilism, these products were transferred to the European market through Arab traders and these products were considered very significant in bringing gold, silver and other valuable exchange items into the Arab countries. During the period of Mercantilism, the link between European markets and Indian subcontinent _____ ______ ______ _____ __________ ________ _________ _________ ___.
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