What is Industry?
Industry means not a factory, it refers to economic activities that are connected to the production of goods, extraction of minerals, and providing the services.
The following are the example of industries:
- The cotton industry, the steel industry; the Production industry as they produce goods.
- Mining industry; coal and Bauxite mining industries.
- Tourism and consultancy; Service industry
Whatever we are seeing Industry today is evolved gradually over time. The nature of the evolution of Industries can be broadly categorized in the following timeline;
- Before 1750 AD
- Between 1750 AD to 1854
- Between 1854 to 1947
- Between 1947 to 1991
- Between 1991 to the present
Before 1750 or before the machine age or before the industrial revolution
Handmade Indian silk and cotton goods having very finer quality dominated the international market and have a very high demand in the international market.
- Only India was able to provide a finer variety of silk and cotton cloths.
- Armenian and Persian merchants took goods from Punjab via northwest Frontier through Mountain pass across the desert.
- Surat on Gujarat Coast had connected to India with Gulf and red seaport.
- Masulipatam port on the coromandel coast ad Hoogle port in Bengal was connected to south Asian port for trades.
- There was a well-developed trade network inside India,
- Indian merchants and financiers were involved in robust export trade.
- Finance was available for production, carrying goods, and supply export.
- Supply merchants were connected to export cities to weaving villages and also they gave advance to weavers.
- Merchants procured eaves cloth from the weaving village to the port city.
After 1750 AD;
Political power established by Britisher in India.
- Gradually, the network was controlled by Indian merchants was breaking down.
- European companies gradually gain power through various means:
- Secured a Variety of connections from a local court.
- Monopoly rights to trade
- Resulted in the following things:
- Decline old port of Surat and Hoogly and Importance of Bombay and Calcutta port increased and these
- were controlled by Britisher.
- At Surat, in 1700 trade was Rs,16million and it declined Rs 3 million in 1740.
- Credit and local financer bank went Bankrupt.
From 1750 AD to 1854 AD:
British traders took complete control of the Indian Market. Indian Merchants, financers faced great losses.
Due to the Industrial revolution, cotton factories were opened in England and they pressurized the Brish government to impose import duty on goods and also pressurized to East India Company to explore the market of Britisher finished goods in India.
The following were the results:
Export sectors:
- 1811-12, values-wise textile export was 33 % of all export.
- In 1850-51, it was shrunk to 3 % of India's export values wisely.
Import Sectors:
- In 1800 AD, we nearly did not import cotton product
- In 1850, the cotton product was being imported 31 % comprise of all import
- In 1870, Cotton import comprises 50 % of all imports.
- Cotton weaver faced two problems; Export collapse
The local market shrank and they were not able to compete with machine-made finished goods products.
In 1860 new problems arises, Indian weaver not able to get sufficient raw market as the internal demand for raw material as high as the American Civil War; cotton supply from the USA was cut off. The demand for Indian raw cotton increased.
End of the Nineteenth century, the Indian market was flooded with Machine-made goods.
From 1854 to 1947:
The following are the initial factories set up in India.
- In 1854, the first cotton mill in Bombay was set up.
- In 1855, First June Mill in Bengal.
- In 1860, Elgin Mill in Kanpur.
- In 1961, Cotton Mill in Ahmedabad
- In 1874, the First spinning and weaving mill in Madras.
- 1874, the steel industry at Kulti
- 1907, Tata iron and steel company at Jamshedpur
Initial entrepreneurs who were involved n trade with China and other southeast countries gain some profit and establish factories in India. There were three main entrepreneurs:
- Dwarkanath Tagor In Calcutta.
- Tata in Bombay.
- Marwari Businessman, GD Birla.
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