Role of British Raj ( Before World War 1) Modern India Role of British Raj ( Before World War 1)

Impact of British Raj Commercialization of Agriculture Destruction of handicraft industry Growth of Modern Industry and Rise of capitalist class Trade and Commerce- Reversal of Trend

Agriculture

Commercialization of Agriculture Previously surplus but now only for commercial purpose Reason Land Revenue in cash Influence of middleman Govt policies End of manufacturing and thus unemployment Availability of better infrastructure American war of independence Opening of Suez Canal

Commercialization of Agriculture Some industries established But were in British control Created food scarcity Any relevance to current environment ? Moneylenders grew Benefits More land under agriculture Export income grew Income of farmers increased

Handicraft Industry

Recap Industries in Ancient Time Industries during the Medieval Period Business by Srenis Industries during the Medieval Period Karkhana

Decline Started declining in Nineteenth century Reason Policy of British EIC and Parliament – High export duties Impact of Foreign Rule- Influence on rich/educated class in India Competition with machine made goods Policy of Laissez faire – no protection provided No patronage provider as Rulers were not effective

Impact Problem of unemployment Impact on agriculture Impact on Rural economy Drain of wealth

Modern Industry and Capitalist Class

Recap Agency Houses Charter Acts and domination of british on import and export

After 1858 Cotton Mills, Jute Mills and mining industry set up in 1860s Cotton in West, Jute in Bengal and Mining in Raniganj Mainly owned by foreigners- Any commercial benefit? Expense on the Indian mutiny and deficit budget Cheap labour in India Indian Railways also started

Opposition from British Cotton got affected- import duties removed Not much impact on Jute- Mostly held by Scots Mining required for Indian Railways

Capitalist class Before British, we had capitalist class as money lenders Modern industry required high capital which only Britishers had Capitalist class initially declined But later on starting emerging. Main growth happened during and after world war 1

Trade and Commerce

Recap In ancient times sound principles Only surplus to be traded Import only scarce and useful items India was workshop of the world Favorable Balance of Trade Europeans were so addicted that they found new route to trade with India.

the British Worry No work from India to be used East India Company was forced to start promoting British goods Also re-export of India goods are banned in Britain East India Company had exclusive rights so could influence

Impact Around half of India export to Britain, 1/4th to China Increased to 60% by 1840 Led to political dependency Same story with Imports

Overall what's the opinion? After 1858 Nation of Shopkeepers become Workshop of the world Economic imperialism set in No great challenge for Britain in Europe Balance of Trade was still favourable Overall what's the opinion?