what was the state of indian industries at the time of independence?
At the time of independnce the industrial sector ws very decayed
1. Discrmntory polices - Britishers found india a supplier of raw materials nd the market for the finished products so they brought policies which hlpd dem achvng dis lyk dey rmvd txes frm imports of fnshd guds nd exprt of raw mterials but incrsd taxes on exprt of finishd guds.
2. Competition frm machine mde product - The indian hndicrfts fcd a tough cmpetition frm mchine mde prodducts as dey wre cheap nd of better quality
3. Disapperance of Princely States - The Nawbs nd the Kings used to patronize the indian handicrft but bcoz of d rule of british the courts disappeared nd lead to the downfall of indian handicrafts
4.New pattern on demand- As the country ws adpting d wstrn culture dre dmnd shiftd frm old hndmde products to the new machine made products.
The state of the Indian industrial sector on the eve of independence was as follows:
- De-industrialisation: Decline of Indian Handicraft Industry. Britishers followed the policy of systematically de-industrialising India. The primary motive behind the de-industrialisation by the British government was two-fold.
(a) to get raw materials from India at cheap rates to reduce India to a mere exporter of raw materials to the British industries.
(b) to sell British manufactured goods in the Indian market at higher prices.
In this way, they exploited India through the device of double exploitation. It resulted in the decline of world-famous traditional handicrafts. Britishers followed a discriminatory tariff policy. It allowed free export of raw materials from India and free import of British final goods to India but placed a heavy duty on the export of Indian handicrafts. In this way, Indian markets were full of manufactured goods from Britain which were low priced. Indian handicrafts started losing both the domestic market and export market. Ultimately, the handicraft industry declined.
- Lopsided Modem Industrial Structure: The unbalanced and lopsided structure of Indian industries is again a legacy of British rule in India. British rulers neither permitted the modernisation of industries nor did they encourage the growth of heavy industries in India. The period 1850-55 saw the establishment of the first cotton mill, first jute mill and the first coal mine. By the end of the 19th century, there were 194 cotton mills and 36 jute mills. The cotton textile mills were located in the western parts of the country, in the states of Maharashtra and Gujarat.
Jute mills in Bengal were established mainly by British capitalists. The first iron and steel industry during British rule was Tata Iron and Steel company (TISCO) incorporated in August 1907 in Jamshedpur (Bihar). Some other industries which had their modest beginning after Second World War were: the sugar, cement, chemical and paper industries.
- Capital Goods Industries were Lacking: The policy of Britishers was simply to develop those industries which would never be competitive with the British industry. They always wanted Indians to be dependent on Britain for the supply of capital goods and heavy equipment. Thus, the development of a few consumer goods industries was witnessed during British rule. The heavy industries were, by and large, conspicuous by their absence. This resulted in an unbalanced and lopsided growth of industries in India.
4. Limited Operation of the Public Sector: The public sector was confined to railways, power generation, communication, ports and some other departmental undertakings.