Industrialisation in India in the 19th Century
Industrialisation in India in the 19th Century
Industrialisation in India in the 19th century: Underdeveloped countries are greatly handicapped by shortage of capital for industry and enterprise.
Finance is the prime maker of growth. Anyway, capital for industry and entrepreneurial zeal were severely and conspicuously scarce in India when the East India Company (1600-1874) stepped into this country.
The British government’s attitude to industrial development in India was lukewarm. It did not establish heavy industries in India as they would become competitors to British industries) However, (the Revolt of 1857 are the growing national movement in India put pressure on the British to do something about the dying industries of Indian. the commission strongly recommended the setting up of factories in India as this would reduce pressure on agriculture. The Swadeshi Movement started by Mahatma Gandhi, which stressed the need to develop indigenous industries, also gave a boost to the industrialization of India.
Naturally, under the circumstance, the state is supposed to act as a godfather for promoting and financing industries. Since India was under the British rule for almost 200 years (1757-1947), the British Government, found it unprofitable and unnecessary to go for industrialization in India. However, imperialist capital came in this country as a matter of colonial policy—the policy of subordination of Indian to British capital. It was only after the First World War (1914-1918), that state patronage for industrial development was visible as Britain’s supremacy all over the globe came under serious threat.
Against this backdrop, a “new” pattern was evolved to overcome the obstacles are:
(i) shortage of entrepreneurship;
(ii) non-availability of, mainly, venture capital; and
(iii) dearth of managerial skill and know how.
This new pattern of industrial organization that evolved came to be known as the Managing Agency System (MAS)—a peculiar business entity in the early years of the nineteenth century. Before we embark upon this form of industrial organization, we will make a brief review of the industrial development during the British rule.
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Om Umang
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