DMPQ: Deindustrialisation was one of the impact of British rule. Give the reasons for deindustrialisation of India?

British rule was the era of drain of wealth. It affected all the sector alike. It has an impact on socio-economic-political milieu. Deindustalisation was the one of the serious consequence. The reasons for deindustralisation are as follows:

  • The patronage received by the industries earlier were no longer available. As there was curtailment of demand of costly items.
  • Ruler lost their kingdom as a result of which no longer service of huge army was required . This led to reduced demand of euipments.
  • Rising middle class of educated Indians were more in liking of British goods.
  • British government taxation policies caused serious hardship. Sustainability of Industries was very difficult. For eg. Lord Dalhousie assured 5% return on investment in Railway. This was financed by Taxing Indians. This means Less disposable Income.
  • The railway tracks were able to take British goods to the nook and corners of the country which replaced the Indian goods.
  • Britishers economic policies were tailor made to serve the objectives of Britain. High taxes on Indian finished goods in UK. It monopolise raw cotton by forcing peasants to sell raw cotton to company alone. The company utilise its political control to monopolise Indian market.

Hence British rule was one of the prime reason for deindustrialisation. India was denied of the capital. Instead capital generated in India was financing the British Industrial revolution and later on was used to fiancé home charges and paying interest.


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