De- Industrialization

Commentators often talk of the long decline of industry in the British economy. In
simple terms this is what we mean by de-industrialization – a fall in the contribution made
by the manufacturing sector to national output, employment and income. We can
consider manufacturing as a whole, or focus on individual industries such as steel and
clothing and textiles
De-industrialization is a long-term process of structural change in an economy – leading
to a change in the composition of national output, and important alterations to the
structure of our labour market.
There is a number of different ways of measuring the extent to which our manufacturing
sector is experiencing de-industrialization:
Its impact on the Indian Economy
The economic condition of India in the 19th century started becoming worse due to
several polices of the British government. The Indian manufacturing sector was
sometimes sharply disrupted sue to the import of machine made foreign goods. While
analyzing the economic impact of British rule and consequent poverty, Indian nationalists
has quite convincingly argued that British rule has de-industrialized India. However,
recent researches in modern economic history of India after independence has challenged
this widely accepted hypothesis on many grounds. To reach at final analysis it is
imperative to go through all major views of the scholars and sources of information of
different parts of 19th century India.
Drain of wealth the systematic policy of ferring the economic resources of India to
Britain i.J erished the country. The officials of the British I government were paid out of
the Indian exchequel money went out of India. There was a heavy tax t on the Indian
people because large sums had to b annually as interest on loans contracted by the Gove~
of India. UnemploY}llent increased in India. It was first time in India’s history that the
balance of trade t unfavourable towards India.
De-industrialisation The British caused 1 Dous harm to the traditional handicraft
industry decayed beyond recovery. Heavy customs dutiE imposed on Indian goods. The
British officials! Preference for European goods. This provided an. to the demand for
European goods and contribute decline of Indian handicrafts. The availability of n made
goods in abundance at a comparatively low H greatly contributed to the decline of Indian
handicri failure of the British Government to offer any protE indigenous industry also
contributed to the de Indian handicrafts because they could not compt machine-made
goods produced in bulk, and Consequently cheaper. With the subjugation of Indian
princely 51 patronage to the handicraft industry ceased to exist.