Factories Come up
INTRODUCTION:
While British factories boomed and Indian handloom weavers suffered, a group of bold Indian entrepreneurs began setting up factories in India despite the challenges of colonial rule. The story of Indian industrialization is not just about factories coming up—it is also about where workers came from, how they were recruited, and what made India's industrial growth different from that of Britain. This section covers the jobber system for recruiting workers, early industrialists like Dwarkanath Tagore, Jamsetjee Tata, and G.D. Birla, and the peculiarities that shaped India's industrial growth.
Where Did Workers Come From?
Movement from rural areas
As factories came up in cities like Bombay, Calcutta, and Kanpur, industrialists needed large numbers of workers. Most workers came from nearby districts and villages, migrating to cities in search of jobs.
· Bombay cotton mills drew workers mostly from the Konkan districts of Maharashtra.
· Calcutta jute mills drew workers from Bengal and Bihar.
· Workers traveled long distances, often on foot, to reach factory towns.
Worker recruitment through the jobber system
Finding reliable workers was not easy for factory owners. They could not advertise in newspapers or post notices because most workers were illiterate. So industrialists used a system of jobbers to recruit workers.
Who was a jobber?
· A jobber was an old and trusted worker who had already been working in the factory for many years.
· Factory owners made the jobber a supervisor and gave him the responsibility of recruiting new workers.
How did the jobber work?
· The jobber went to his own village or hometown and brought workers he personally knew.
· He helped workers settle in the city, find housing, deal with police, and manage everyday urban life.
· He got a commission from factory owners for every worker he brought in.
Jobbers become powerful
Over time, jobbers became very powerful:
· They controlled who got jobs and who did not.
· They allocated specific machines to workers and could transfer or dismiss workers.
· They started demanding money, gifts, and personal favours in exchange for jobs.
· Workers had to please the jobber or risk losing their employment.
Board exam tip: Jobber = trusted old worker turned
recruiter + supervisor; became powerful and corrupt over time.
Section 3: INDUSTRIALISATION IN THE COLONIESChapter 4: The Age of Industrialisation
Factories Come Up: Early Indian Entrepreneurs
Who were the first Indian industrialists?
Many of India's first industrialists came from communities that had been merchants, traders, or financiers under colonial rule. They used their accumulated trade wealth to invest in factories.
Dwarkanath Tagore
Dwarkanath Tagore was one of India's earliest industrial entrepreneurs:
· He made his fortune in the China trade (buying and selling opium and textiles between India and China).
· He set up a string of business ventures in the 1830s and 1840s: coal mines, plantations, and commercial banks.
· He partnered with British managing agencies and used both Indian and European capital.
Jamsetjee Nusserwanjee Tata (J.N. Tata)
Jamsetjee Tata was the most visionary early Indian industrialist:
· He too made his initial fortune through the China trade.
· He established a cotton mill in Nagpur in 1869, introducing a new model where spinning and weaving were done under one roof.
· His greatest dream was to set up a steel factory to utilize India's vast iron ore reserves.
· This dream was realized after his death when the Tata Iron and Steel Company (TISCO) was set up at Sakchi (now Jamshedpur, Jharkhand) in 1907.
G.D. Birla and other entrepreneurs
Ghanshyam Das Birla built his business in the twentieth century:
· He started as a trader but expanded into factories and manufacturing.
· He set up cotton and jute mills, sugar factories, and paper mills.
Other early Indian industrialists included:
· Dinshaw Petit and Jamsetjee Petit (Bombay textile mills)
· Seth Hukumchand (Calcutta jute mills)
· Thackersey family (cotton mills)
Class 10 Science – Chapter 12: Electricity complete notes
The Peculiarities of Industrial Growth
Indian industry was different from British industry
India's industrial growth had several unique features that made it very different from the way industrialization happened in Britain.
First: Capital came from trade, not industry
In Britain, industrial profits were reinvested into more industries, creating a cycle of growth. But in India, factory capital came from trading communities who had accumulated wealth through trade under colonial rule.
· Marwari traders (from Rajasthan) became dominant industrial financiers in Calcutta.
· Parsi traders (like the Tata family) from western India invested in factories.
· Seth Hukumchand, a Marwari trader, set up the first Indian jute mill in Calcutta (1917).
Second: Indians avoided direct conflict with British firms
Indian industrialists were careful not to directly compete with British companies:
· In Bengal, Indians avoided jute mills because that sector was dominated by British companies.
· They invested instead in cotton textiles (Bombay) and sugar (UP).
· Only after the First World War did Indian jute mills start competing with British mills in Bengal.
Third: Most industries produced for the domestic market
Unlike British industries that exported globally, most Indian factories produced for the Indian domestic market. They were not export-oriented because cheap British machine goods already dominated global markets.
Fourth: Railway demand stimulated some industries
The expansion of railways in India created new demand:
· Iron and steel (for rails, wagons, bridges)
· Coal (for engines)
· Cotton goods (for railway workers' uniforms)
This gave Indian industrialists
opportunities in specific sectors.
Section 2: HAND LABOUR & STEAM POWER
Chapter 4: The Age of Industrialisation
The Market for Goods
How did Indian manufacturers advertise?
As factories came up and goods were produced in larger quantities, manufacturers had to create demand for their products. This was done through:
1. Labels on cloth bundles — Indian manufacturers used printed labels with brand names, company names, and images of gods and goddesses to attract buyers.
2. Calendars — manufacturers gave away free calendars with images of gods, kings, and historical figures. These hung in shops, homes, and public places throughout the year, keeping the product in people's minds.
3. Advertisements in newspapers — as literacy grew, newspaper ads became a tool for selling products.
Swadeshi movement and Indian goods
During the nationalist movement, the Swadeshi campaign boosted demand for Indian goods:
· Leaders urged people to buy Indian-made goods and boycott British products.
· Indian manufacturers used nationalist imagery (Indian flags, Gandhi's portrait) on labels and advertisements to attract buyers.
· Mill owners and traders used this sentiment to promote their products as patriotic choices.
Section 1: BEFORE THE INDUSTRIAL REVOLUTIONChapter 4: The Age of Industrialisation
Quick Revision Table
|
Topic |
Key Points for Exams |
|
Worker recruitment |
Workers came from nearby districts; jobbers recruited from their own villages. |
|
Jobber system |
Old trusted worker turned recruiter; helped workers settle in city; became powerful and corrupt. |
|
Dwarkanath Tagore |
China trade wealth; coal mines, plantations, banks (1830s-40s). |
|
Jamsetjee Tata |
Cotton mill Nagpur (1869); TISCO Sakchi/Jamshedpur (1907). |
|
G.D. Birla |
Cotton/jute mills; started as Marwari trader. |
|
Capital source |
Trade wealth (Marwari, Parsi traders) financed Indian factories. |
|
Competition avoidance |
Indians avoided jute (British-dominated); focused on cotton (Bombay), sugar (UP). |
|
Market creation |
Labels, calendars, newspaper ads, Swadeshi campaign. |
Class 10 Science – Chapter 10: Light - Reflection and Refraction complete notes
MCQs PYQ
1. Who was a jobber?
A. A British factory owner
B. An old trusted worker who recruited new workers
C. A government official
D. A merchant trader
Answer:
B
2. Jobbers became powerful because:
A. They owned factories
B. They controlled job allocation and demanded money for employment
C. They were government servants
D. They were friends of British officers
Answer:
B
3. Bombay cotton mills drew workers
mainly from:
A. Rajasthan
B. Konkan districts of Maharashtra
C. Punjab
D. Madras
Answer:
B
4. TISCO (Tata Iron and Steel Company)
was set up in:
A. 1857
B. 1890
C. 1907
D. 1919
Answer:
C
5. TISCO was located at:
A. Bombay
B. Nagpur
C. Calcutta
D. Sakchi (Jamshedpur)
Answer:
D
6. Jamsetjee Tata set up his first cotton
mill at:
A. Bombay
B. Calcutta
C. Nagpur
D. Surat
Answer:
C
7. Dwarkanath Tagore made his initial
fortune through:
A. Steel factories
B. China trade
C. Cotton weaving
D. Salt trade
Answer:
B
8. Indian industrialists in Bengal mainly
avoided investing in:
A. Cotton textiles
B. Jute mills (dominated by British)
C. Sugar factories
D. Coal mines
Answer:
B
9. The Swadeshi campaign helped Indian
manufacturers by:
A. Reducing
competition
B. Creating nationalist demand for Indian-made goods
C. Stopping all imports
D. Giving factories to Indian owners
Answer:
B
10.
Indian
manufacturers used calendars as a tool to:
A. Show dates to
workers
B. Keep their brand in buyers' minds throughout the year
C. Record production data
D. Train workers
Answer:
B
Short Answer Questions (PYQ)
Q1. What was the jobber system?
Answer: The jobber was an old and trusted factory worker who was given the responsibility of recruiting new workers by factory owners. He went to his own village, brought workers he personally knew, helped them settle in the city, and received a commission from factory owners. Over time, jobbers became very powerful and started demanding money and gifts from workers in exchange for jobs, making them corrupt but essential intermediaries.
Q2. Who were the early Indian industrialists? Name any two with their contributions.
Answer: Two early Indian industrialists were Dwarkanath Tagore and Jamsetjee Tata. Tagore made his fortune in the China trade and set up coal mines, plantations, and banks in the 1830s-40s using Indian and European capital. Tata set up a cotton mill in Nagpur (1869) and founded TISCO at Sakchi (Jamshedpur) in 1907, fulfilling his dream of building India's first modern steel plant.
Q3. What were the peculiarities of industrial growth in India?
Answer: India's industrial growth was unique because capital came from trading communities (Marwari and Parsi traders) rather than reinvested industrial profits. Indian industrialists deliberately avoided sectors dominated by British companies (like jute in Bengal) and focused on cotton, sugar, and steel. Most Indian industries produced for the domestic market rather than global export because cheap British goods already dominated world markets.
Q4. How did Indian manufacturers create a market for their goods?
Answer: Indian manufacturers used labels on cloth bundles with brand names and images of gods and goddesses to attract buyers and build brand identity. Free calendars with images of gods, kings, and national leaders were distributed to keep products in public memory throughout the year. The Swadeshi campaign further boosted Indian goods by creating nationalist sentiment among buyers who preferred Indian-made products over British ones.
Q5. How did the Swadeshi movement help Indian industries?
Answer: The Swadeshi movement during the
nationalist period urged Indians to boycott British-made goods and buy Indian
products, creating strong demand for Indian factory goods. Indian manufacturers
used nationalist imagery like Indian flags and Gandhi's portrait on labels and
advertisements to attract patriotic buyers. This movement gave Indian
industrialists a significant market advantage over British goods and helped
many factories grow.
THE INTER-WAR ECONOMYChapter 3: The Making of a Global World
Long Answer Questions (PYQ)
Q1. Describe the jobber system in early Indian factories. Why did jobbers become powerful?
Answer: As factories came up in cities like Bombay and Calcutta, industrialists needed large numbers of workers but could not advertise because most workers were illiterate. They relied on jobbers—old, trusted factory workers—to recruit new workers from their own villages and regions. Jobbers helped new workers settle in the city: they found housing, dealt with police, and managed urban life for migrants far from home. Factory owners paid jobbers commissions for every worker recruited. Over time, jobbers gained enormous power because they controlled job allocation, machine assignments, and transfers; they began demanding money, gifts, and personal favours from workers, becoming corrupt but essential figures in the industrial labour system.
Q2. Who were the early Indian industrialists? Explain their contributions to Indian industry.
Answer: India's first industrialists came from trading communities who had accumulated wealth through colonial-era trade. Dwarkanath Tagore used his China trade wealth to set up coal mines, plantations, and banks in Calcutta in the 1830s-40s, pioneering Indian industrial enterprise. Jamsetjee Nusserwanjee Tata set up a cotton mill in Nagpur in 1869 and dreamed of building India's steel industry; his vision was realized when TISCO was established at Sakchi (Jamshedpur) in 1907, becoming India's first major steel plant. G.D. Birla expanded from trade into cotton, jute, sugar, and paper mills in the twentieth century. These industrialists faced colonial restrictions, lack of protection, and competition from British goods, yet built the foundation of modern Indian industry.
Q3. Explain the peculiarities of industrial growth in India under colonial rule.
Answer: India's industrial growth differed significantly from Britain's for several reasons. First, capital came from trading communities (Marwari and Parsi merchants) rather than reinvested industrial profits as in Britain. Second, Indian industrialists deliberately avoided sectors dominated by British companies—Indians in Bengal avoided jute mills and focused instead on cotton (Bombay) and sugar (UP). Third, most Indian factories produced for the domestic market because cheap British machine goods already dominated global export markets. Fourth, railway expansion in India created some demand for coal, iron, steel, and cotton goods, giving Indian industrialists opportunities in specific sectors.
Conclusion
Factories did come up in colonial India despite significant challenges. Early
entrepreneurs like Dwarkanath Tagore, Jamsetjee Tata, and G.D. Birla used trade
wealth to build India's industrial foundations. The jobber system solved the
problem of worker recruitment but created new issues of corruption and worker
exploitation. India's industrial growth was unique—financed by traders, focused
on domestic markets, and shaped around avoiding British competition. The
Swadeshi movement gave Indian manufacturers a powerful tool to build markets
through nationalism. For board exams, focus on the jobber system, TISCO (1907),
Dwarkanath Tagore's contributions, peculiarities of Indian industrial growth,
and the role of Swadeshi in creating markets—these are frequently tested.
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