Industrialisation in the Colonies
INTRODUCTION:
Before British rule, India was one of the world's leading producers and exporters of fine textiles. Indian silk and cotton dominated international markets for centuries. But with the rise of colonial power and British industrial expansion, this centuries-old trade network collapsed. This section explores how Indian textiles declined, how the East India Company controlled weavers through the gomastha system, how Manchester goods flooded the Indian market, and how Indian factories eventually came up despite colonial restrictions.
The Age of Indian Textiles
India's global dominance in textiles
Before machine industries appeared, silk and cotton goods from India dominated the international textile market. Coarser cottons were produced in many countries, but the finer varieties often came from India.
How was trade organized?
A vibrant network connected India's weaving villages to international markets:
· Armenian and Persian merchants took goods from Punjab to Afghanistan, eastern Persia, and Central Asia.
· Surat (Gujarat coast) connected India to the Gulf and Red Sea ports.
· Masulipatam (Coromandel coast) and Hoogly (Bengal) had trade links with Southeast Asian ports.
Merchants and bankers financed production, carried goods, and supplied exporters. Supply merchants linked port towns to inland weaving regions, gave advances to weavers, procured cloth from villages, and carried supplies to ports.
Decline of the old network
By the 1750s, this network controlled by Indian merchants began breaking down. European companies gradually gained power—first securing concessions from local courts, then monopoly rights to trade.
The old ports of Surat and Hoogly declined as a result:
· Exports fell dramatically
· Credit dried up
· Local bankers went bankrupt
The gross value of trade through Surat had been Rs 16 million in the late seventeenth century. By the 1740s, it had slumped to Rs 3 million.
While Surat and Hoogly decayed, Bombay and Calcutta grew—a
clear sign of the shift from Indian-controlled trade to European colonial
trade.
Class 10 Science – Chapter 12: Electricity complete notes
What Happened to Weavers?
Company's initial interest in Indian textiles
After the East India Company established political power in Bengal and Carnatic (1760s-70s), it was actually keen to expand textile exports from India because British cotton industries had not yet grown and Indian fine textiles were in great demand in Europe.
Control over weavers: the gomastha system
To ensure regular and cheap supply, the Company developed a system to control weavers directly:
Step 1: The Company eliminated existing traders and brokers and appointed its own paid servant called the gomastha to supervise weavers, collect supplies, and examine quality.
Step 2: It prevented weavers from dealing with other buyers through a system of advances. Once an order was placed, weavers were given loans to buy raw materials. Those who took loans had to hand over cloth only to the gomastha—they could not sell to anyone else.
Impact on weavers
As loans flowed in and demand grew, weavers eagerly took advances hoping to earn more. But serious problems followed:
· Many weavers had to lease out their small plots of land and devote all time to weaving.
· Weaving required the labour of the entire family—children and women all engaged at different stages.
· The new gomasthas were outsiders with no social link to the village. They acted arrogantly, marched in with sepoys and peons, and punished weavers for delays—often beating and flogging them.
· Weavers lost the ability to bargain for prices or sell to different buyers.
· The prices they received from the Company were miserably low.
Weavers' reactions
Weavers responded in several ways:
· In Carnatic and Bengal, many deserted villages and migrated, setting up looms elsewhere.
· Others revolted against the Company and its officials.
· Over time, many refused loans, closed workshops, and took to agricultural labour.
Board exam tip: Gomastha system = Company's tool to
control weavers: eliminate brokers + advance loans + ban selling to others +
low prices + arrogant outsider officials.
History Section 2: HAND LABOUR & STEAM POWER Chapter 4: The Age of Industrialisation
Manchester Comes to India
Dramatic decline in Indian textile exports
In 1811-12, piece goods accounted for 33 percent of India's exports. By 1850-51, this figure had crashed to just 3 percent.
Why did this happen?
As cotton industries developed in England:
1. British industrial groups pressurised the government to impose import duties on cotton textiles so Manchester goods could sell in Britain without competition.
2. Industrialists persuaded the East India Company to sell British manufactures in Indian markets.
3. British cotton goods exports increased dramatically: at the end of the eighteenth century, there was virtually no import of cotton piece goods into India. But by 1850, cotton piece goods were over 31 percent of India's imports, and by the 1870s, over 50 percent.
Double blow to Indian weavers
Cotton weavers in India faced two problems simultaneously:
1. Export market collapsed (India could not sell abroad)
2. Local market shrank (flooded with cheap Manchester machine-made goods)
Manchester goods produced by machines at lower costs were so cheap that weavers could not compete. By the 1850s, reports from most weaving regions described decline and desolation.
Crisis deepens in the 1860s
By the 1860s, weavers faced a new problem: the American Civil War broke out and cotton supplies from the US were cut off. Britain turned to India for raw cotton, so raw cotton exports from India increased and prices of raw cotton shot up. Weavers were forced to buy raw cotton at exorbitant (very high) prices, making weaving unviable.
By the end of the nineteenth century, Indian factories also
began production, flooding the market with machine goods, making survival even
harder for handloom weavers.
Class 10 Science – Chapter: Human Eye and the Colourful World complete notes
Quick Revision Table
|
Topic |
Key Points for Exams |
|
Pre-colonial India |
Fine silk/cotton dominated world markets; Surat, Hoogly, Masulipatam were key ports. |
|
Decline of old ports |
Surat trade: Rs 16 million → Rs 3 million (1740s); Bombay and Calcutta grew instead. |
|
Gomastha |
Company's paid servant; eliminated old brokers; supervised weavers; enforced advance loan system. |
|
Advance system |
Loans tied weavers to Company; could not sell to others; prices miserably low. |
|
Weavers' reactions |
Migrated, revolted, refused loans, closed workshops, became agricultural labourers. |
|
Manchester impact |
Indian exports: 33% (1811-12) → 3% (1850-51); Indian imports: 31% Manchester goods by 1850. |
|
Double blow |
Export market collapsed + local market flooded with cheap Manchester goods. |
|
1860s crisis |
American Civil War → raw cotton prices shot up → weavers couldn't afford raw materials. |
MCQs PYQ
1.
Before
machine industries, India dominated international markets in:
A. Iron and steel
B. Silk and cotton textiles
C. Machinery
D. Coal
Answer:
B
2.
Surat
port connected India to:
A. Southeast Asian
ports
B. Gulf and Red Sea ports
C. European ports only
D. American ports
Answer:
B
3.
By
the 1740s, the trade value through Surat slumped to:
A. Rs 10 million
B. Rs 5 million
C. Rs 3 million
D. Rs 1 million
Answer:
C
4.
A
gomastha was:
A. An Indian weaver
B. A Company-paid servant to supervise weavers
C. A local merchant
D. A ship captain
Answer:
B
5.
The
advance system tied weavers to the Company because:
A. Weavers liked the
Company
B. Weavers who took loans could only sell to the Company
C. Weavers had no other skills
D. The Company paid the best prices
Answer:
B
6.
In
1811-12, piece goods accounted for what percent of India's exports?
A. 10%
B. 33%
C. 50%
D. 60%
Answer:
B
7.
By
1850-51, India's piece goods exports had fallen to:
A. 10%
B. 5%
C. 3%
D. 15%
Answer:
C
8.
Indian
weavers faced a "double blow" meaning:
A. Two wars
B. Export market collapsed + local market flooded with Manchester goods
C. Two droughts
D. Two diseases
Answer:
B
9.
The
1860s crisis for weavers was caused by:
A. Indian government
policies
B. American Civil War cutting off raw cotton supply
C. Monsoon failure
D. New weaving technology
Answer:
B
10.
Which
cities grew as British colonial ports while Surat and Hoogly declined?
A. Delhi and Madras
B. Bombay and Calcutta
C. Agra and Lucknow
D. Pune and Nagpur
Answer:
B
History: BEFORE THE INDUSTRIAL REVOLUTION Chapter 4: The Age of Industrialisation.
Short Answer Questions (PYQ)
Q1. How was India's textile trade organized before the British?
Answer: Before British rule, fine silk and cotton goods from India dominated international markets. Armenian and Persian merchants carried goods to Central Asia; Surat connected India to the Gulf and Red Sea ports, and Masulipatam and Hoogly had links with Southeast Asian ports. Indian merchants and bankers financed production, supply merchants linked weaving villages to ports, and they gave advances to weavers and procured cloth for export.
Q2. What was the gomastha system? What were its effects on weavers?
Answer: The gomastha was a paid Company servant appointed to eliminate existing brokers, supervise weavers, collect supplies, and examine cloth quality. The advance loan system prevented weavers from selling to any buyer other than the Company, which paid miserably low prices. Gomasthas acted arrogantly, used sepoys to punish weavers, and weavers lost their bargaining power, leading many to migrate, revolt, or abandon weaving altogether.
Q3. How did Manchester goods affect Indian weavers?
Answer: Manchester machine-made cotton goods flooded the Indian market after British industrialists pressurised the East India Company to sell British goods in India. Indian textile exports crashed from 33 percent (1811-12) to just 3 percent (1850-51) of India's total exports. Weavers faced a double blow: their export markets collapsed and their local markets shrank as cheap Manchester goods undercut Indian handloom prices.
Q4. Why did the ports of Surat and Hoogly decline?
Answer: Surat and Hoogly declined as European companies gradually gained power—first securing concessions from local courts, then monopoly rights to trade. This caused exports through these ports to fall dramatically, the credit that financed trade dried up, and local bankers went bankrupt. Trade shifted to the new colonial ports of Bombay and Calcutta, which were controlled by European companies and ships.
Q5. How did the American Civil War affect Indian weavers?
Answer: When the American Civil War broke out
in the 1860s, cotton supplies from the US were cut off and Britain turned to
India for raw cotton. As raw cotton exports from India increased, prices shot
up sharply. Indian weavers were forced to buy raw cotton at exorbitant prices,
making weaving unviable and pushing many into deeper poverty.
Class 10 Science – Chapter 10: Light - Reflection and Refraction complete notes
Long Answer Questions (PYQ)
Q1. Describe how the East India Company controlled weavers in India.
Answer: After gaining political power in the 1760s-70s, the East India Company developed a systematic control over Indian weavers to ensure regular, cheap textile supplies. It eliminated existing traders and brokers and appointed gomasthas—paid Company servants—to supervise weavers, collect supplies, and examine cloth quality. Through the advance system, weavers were given loans to buy raw materials; those who accepted loans could only sell to the Company and could not deal with other buyers. Gomasthas were outsiders with no village ties; they acted arrogantly, came with sepoys and peons, and punished weavers for delays, often beating and flogging them. Weavers lost their bargaining power, received miserably low prices, and had to lease out their land to focus entirely on weaving; many ultimately migrated, revolted, or abandoned weaving for agricultural labour.
Q2. How did Manchester textiles destroy India's handloom industry?
Answer: As cotton industries developed in England, British industrial groups pressurised the government to impose import duties on cotton textiles to protect Manchester goods, while also persuading the East India Company to allow British manufactures into Indian markets. At the end of the eighteenth century, virtually no cotton piece goods were imported into India; by 1850, they constituted over 31 percent of India's imports, and by the 1870s, over 50 percent. Indian textile exports crashed from 33 percent of exports (1811-12) to just 3 percent (1850-51). Indian weavers faced a double blow: their export markets collapsed while their local markets were flooded with cheap machine-made Manchester goods they could not compete with in price. The 1860s American Civil War crisis further devastated weavers by cutting off raw cotton supplies and pushing up prices, making weaving completely unviable.
Q3. Explain how the rise of colonial power transformed India's textile trade.
Answer: Before British rule, India dominated
the world textile market through a vibrant network where Indian merchants
connected weaving villages to ports like Surat, Hoogly, and Masulipatam for
export to Europe, Central Asia, and Southeast Asia. As European companies
gained monopoly rights to trade, these old ports declined—Surat's trade fell
from Rs 16 million to Rs 3 million by the 1740s—while British-controlled Bombay
and Calcutta grew. The East India Company controlled weavers through the
gomastha system and advance loans, paying miserably low prices and preventing
weavers from selling to anyone else. When British machine industries grew,
Manchester cotton goods flooded Indian markets, Indian textile exports
collapsed from 33 percent to 3 percent of total exports within 40 years, and
weavers faced the double blow of losing both export and domestic markets. The
1860s American Civil War crisis further pushed up raw cotton prices, making
survival as weavers nearly impossible and completing the destruction of India's
once-dominant handloom industry.
History: THE INTER-WAR ECONOMY Chapter 3: The Making of a Global World
Conclusion
Before colonial rule, India was the world's leading textile exporter, with vibrant
networks connecting weavers to global markets through Indian merchants and
ports. Colonial rule dismantled this system: the gomastha system tied weavers
to the Company with advance loans and low prices, Manchester machine-made goods
flooded both export and local markets, and the American Civil War crisis
destroyed raw material supplies. This combination of factors devastated India's
centuries-old handloom industry and forced thousands of weavers into poverty
and agricultural labour. For board exams, focus on the gomastha system, the
double blow to weavers, the Manchester impact statistics (33% to 3%), and the
American Civil War effect—these are high-frequency questions.
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