The Age of Industrialisation
Comprehensive notes covering proto-industrialisation, British Industrial Revolution, Indian textile decline, factory growth in India, and market strategies — with UPSC-standard MCQs.
📋 Table of Contents
In 1900, music publisher E.T. Paull produced a music book with a cover titled ‘Dawn of the Century’ — showing an angel of progress perched on a winged wheel, with signs of progress (railway, camera, machines, printing press, factory) floating behind her. This glorification of machines and technology reflected the popular understanding of industrialisation as purely progressive.
A trade magazine of the same era showed Two Magicians: Aladdin from the Orient (representing the East and the past) and a modern mechanic (representing the West and modernity). This captures a biased western narrative of industrialisation.
This chapter questions such triumphant narratives. It focuses first on Britain — the first industrial nation, and then on India — where industrial change was conditioned by colonial rule.
We often associate industrialisation only with factory production. But even before factories appeared in England and Europe, there was large-scale industrial production for an international market — NOT based on factories. Historians call this phase proto-industrialisation.
In the 17th and 18th centuries, merchants from European towns moved to the countryside, supplying money to peasants and artisans and persuading them to produce for an international market. With the expansion of world trade and acquisition of colonies, demand for goods grew. But merchants could NOT expand production within towns because:
| Urban Guilds | Associations of producers that trained craftspeople, maintained control over production, regulated competition and prices, and restricted the entry of new people into the trade. |
|---|---|
| Guild Power | Rulers granted different guilds monopoly right to produce and trade in specific products. It was difficult for new merchants to set up business in towns. |
| Solution | Merchants turned to the countryside, where poor peasants and artisans worked for them. |
In the countryside, poor peasants and artisans eagerly worked for merchants. Commons were being enclosed, open fields disappearing — cottagers had to look for alternative income. Many had tiny plots of land that could not provide work for all household members. By working for merchants, they could remain in the countryside and continue to cultivate their small plots. Income from proto-industrial production supplemented their shrinking income from cultivation.
At each stage of production 20 to 25 workers were employed by each merchant — meaning each clothier controlled hundreds of workers.
New Words:
• Stapler — A person who ‘staples’ or sorts wool according to its fibre
• Fuller — A person who ‘fulls’ — gathers cloth by pleating
• Carding — The process in which fibres (cotton or wool) are prepared prior to spinning
Industrialisation was NOT as rapid or uniform as commonly believed. Four important qualifications:
| 1. Leading Industries | Most dynamic industries were cotton and metals. Cotton was the leading sector up to the 1840s; after that, iron and steel led. By 1873, Britain was exporting iron and steel worth about £77 million — double the value of its cotton export. |
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| 2. Traditional Industries Not Displaced | Even at the end of the 19th century, less than 20% of the total workforce was employed in technologically advanced industrial sectors. Textiles was dynamic but a large portion of output was produced outside factories, within domestic units. |
| 3. Small Innovations | Pace of change in ‘traditional’ industries was not set by steam-powered industries. Small innovations drove growth in food processing, building, pottery, glass work, tanning, furniture making, production of implements. |
| 4. Slow Technological Change | New technology was expensive; merchants and industrialists were cautious about using it. Machines often broke down; repair was costly. They were not as effective as inventors claimed. |
At the beginning of the 19th century, there were no more than 321 steam engines all over England: 80 in cotton industries, 9 in wool industries, and the rest in mining, canal works, and iron works. Steam engines were NOT used in other industries till much later.
Key conclusion: The typical worker in the mid-19th century was NOT a machine operator but the traditional craftsperson and labourer.
In Victorian Britain, there was no shortage of human labour. Poor peasants and vagrants moved to cities in large numbers seeking jobs. When there is plenty of labour, wages are low. So industrialists had no problem of labour shortage or high wage costs — they did not want to introduce machines that required large capital investment.
| Seasonal Demand | In many industries demand for labour was seasonal. Gas works and breweries were especially busy in cold months. Bookbinders and printers needed extra hands before December (Christmas demand). At waterfronts, winter was the time ships were repaired. |
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| Preference for Hand Labour | In industries where production fluctuated with the season, industrialists preferred hand labour, employing workers for the season. |
| Intricate Products | Many products could be produced only with hand labour. Machines were oriented to producing uniform, standardised goods for mass markets. But demand was often for goods with intricate designs. In mid-19th-century Britain, 500 varieties of hammers and 45 kinds of axes were produced — requiring human skill, not mechanical technology. |
| Upper-class Preference | In Victorian Britain, upper classes — aristocrats and bourgeoisie — preferred things produced by hand. Handmade products symbolised refinement and class. Machine-made goods were for export to the colonies. |
| Contrast with America | In countries with labour shortage (like 19th-century America), industrialists were keen on mechanical power. Britain, however, had no problem hiring human hands. |
Quoted in Raphael Samuel, ‘Comers and Goers’, in H.J. Dyos and Michael Wolff, eds, The Victorian City: Images and Realities, 1973.
This illustrates the abundant supply of cheap labour in Victorian Britain and why industrialists preferred it over machines.
The abundance of labour in the market deeply affected workers’ lives. Getting jobs depended on existing networks of friendship and kin relations. Many job-seekers had to wait weeks, spending nights under bridges or in night shelters.
| Night Refuges | Set up by private individuals |
|---|---|
| Casual Wards | Maintained by the Poor Law authorities (staying was humiliating — medical examination, body cleansed, clothes purified, hard labour required) |
| Seasonal Unemployment | After busy season, poor were on streets again. At best of times till mid-19th century, about 10% of the urban population were extremely poor. In periods of economic slump like the 1830s, unemployed went up to 35–75% in different regions. |
| Napoleonic War Effect | When prices rose sharply during the prolonged Napoleonic War, the real value of workers’ wages fell significantly. |
When the Spinning Jenny was introduced in the woollen industry, women who survived on hand spinning began attacking the new machines. This conflict continued for a long time.
Source B — A magistrate in 1790 described being called to protect a manufacturer’s property: ‘From the depredations of a lawless Banditti of colliers and their wives, for the wives had lost their work to spinning engines…avowing their intention of cutting to pieces the machine…which they suppose, if generally adopted, will lessen the demand for manual labour.’
— J.L. Hammond and B. Hammond, The Skilled Labourer 1760-1832
Before the age of machine industries, silk and cotton goods from India dominated the international market in textiles. Coarser cottons were produced in many countries, but the finer varieties often came from India.
| Trade Routes | Armenian and Persian merchants took goods from Punjab to Afghanistan, eastern Persia, and Central Asia. Bales of fine textiles were carried on camel back via the north-west frontier, through mountain passes and across deserts. |
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| Pre-colonial Ports | Surat (Gujarat coast) — connected India to the Gulf and Red Sea Ports Masulipatam (Coromandel coast) — trade links with Southeast Asian ports Hoogly (Bengal) — trade links with Southeast Asian ports |
| Supply Chain | Indian merchants and bankers financed production, carried goods, supplied exporters. Supply merchants linked port towns to inland regions — gave advances to weavers, procured woven cloth from weaving villages, carried supply to ports. At ports, big shippers had brokers who negotiated prices. |
| By 1750s | This network, controlled by Indian merchants, was breaking down. |
After the East India Company consolidated power (1760s), it was initially keen on expanding textile exports from India — British cotton industries had not yet expanded and Indian fine textiles were in great demand in Europe.
Once the EIC established political power, it asserted a monopoly right to trade and developed a system to eliminate competition, control costs, and ensure regular supplies. This was done through:
| Step 1: Gomastha System | The Company tried to eliminate existing traders and brokers. It appointed a paid servant called the gomastha to supervise weavers, collect supplies, and examine quality of cloth. |
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| Step 2: System of Advances | Company prevented weavers from dealing with other buyers. Once an order was placed, weavers were given loans to purchase raw material. Those who took loans had to hand over cloth to the gomastha — could not take it to any other trader. |
| Effect on Weavers | Weavers eagerly took advances hoping to earn more. Many had to lease out their land and devote all time to weaving. Weaving required labour of the entire family — children and women all engaged. |
| Conflict | Clashes between weavers and gomasthas in many weaving villages. Earlier supply merchants lived within villages with close relationships. New gomasthas were outsiders — acted arrogantly, marched in with sepoys and peons, punished weavers by beating and flogging. |
| Outcome | Weavers lost bargaining power. Price from Company was miserably low. In Carnatic and Bengal, weavers deserted villages and migrated. Some revolted. Over time many began refusing loans, closing workshops, and taking to agricultural labour. |
In 1772, Company official Henry Patullo had said that demand for Indian textiles could never reduce. Yet by the beginning of the 19th century there was a long decline in textile exports from India.
| Piece-goods exports decline | 33% of India’s exports (1811-12) → only 3% by 1850-51 |
|---|---|
| Why? | As cotton industries developed in England, industrial groups pressurised government to impose import duties on cotton textiles so Manchester goods could sell in Britain without competition. Industrialists also persuaded EIC to sell British manufactures in Indian markets. |
| British cotton imports into India | Virtually no import at end of 18th century → 31% of value of Indian imports by 1850 → over 50% by the 1870s |
| Double Crisis for Weavers | (1) Export market collapsed; (2) Local market shrank, glutted with Manchester imports. Machine-made goods were so cheap that weavers could not compete. |
| 1860s — Raw Cotton Crisis | American Civil War cut off US cotton supplies from Britain. Britain turned to India for raw cotton → raw cotton exports from India increased → price of raw cotton shot up → Indian weavers starved of supplies, forced to buy raw cotton at exorbitant prices → weaving could not pay. |
| End of 19th century | Factories in India began production, flooding market with machine-goods. |
— Quoted in J. Krishnamurty, ‘Deindustrialisation in Gangetic Bihar during the nineteenth century’, The Indian Economic and Social History Review, 1985.
— Census Report of Central Provinces, 1872
The history of many Indian business groups goes back to trade with China. From the late 18th century, the British in India exported opium to China and took tea from China to England. Many Indians became junior players in this trade.
| Bengal | Dwarkanath Tagore — made fortune in China trade; set up six joint-stock companies in the 1830s and 1840s. (Enterprises sank in business crises of the 1840s.) |
|---|---|
| Bombay (Parsis) | Dinshaw Petit and Jamsetjee Nusserwanjee Tata — accumulated initial wealth partly from exports to China, partly from raw cotton shipments to England. |
| Calcutta (Marwari) | Seth Hukumchand — traded with China; set up first Indian jute mill in Calcutta in 1917. |
| G.D. Birla | Father and grandfather both traded with China. Famous industrialist of 20th century. |
| Madras merchants | Some traded with Burma; others had links with Middle East and East Africa. |
| Numbers | In 1901: 584,000 workers in Indian factories. By 1946: over 2,436,000. |
|---|---|
| Source | In most industrial regions, workers came from surrounding districts. Peasants and artisans who found no work in the village went to industrial centres. Workers moved between village and city — returning during harvests and festivals. |
| Example — Bombay | Over 50% of workers in Bombay cotton industries in 1911 came from the neighbouring district of Ratnagiri. |
| Example — Kanpur | Mills of Kanpur got most textile workers from villages within the district of Kanpur. |
| The Jobber System | Industrialists employed a jobber to get new recruits — usually an old and trusted worker. He got people from his village, ensured them jobs, helped them settle in the city, and provided money in times of crisis. The jobber became a person with authority and power, demanding money and gifts for his favour. |
European Managing Agencies dominated industrial production in India and were interested in tea and coffee plantations, mining, indigo, and jute — primarily for export trade, not for sale in India.
When Indian businessmen began setting up industries in the late 19th century, they avoided competing with Manchester goods in the Indian market.
| Early Cotton Mills | Produced coarse cotton yarn (thread) rather than fabric — since yarn was not an important part of British imports. Superior variety yarn was imported when needed. Yarn produced in Indian spinning mills was used by handloom weavers in India or exported to China. |
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| Early 20th century changes | Swadeshi movement gathered momentum — nationalists mobilised people to boycott foreign cloth. Industrial groups organised to pressure government for tariff protection. From 1906, export of Indian yarn to China declined (Chinese and Japanese mills flooded the Chinese market). |
| Shift to cloth | Industrialists shifted from yarn to cloth production. Cotton piece-goods production in India doubled between 1900 and 1912. |
| Till WWI | Industrial growth was slow. |
• British mills were busy with war production → Manchester imports into India declined
• Indian mills had a vast home market to supply
• Indian factories were called upon to supply war needs: jute bags, cloth for army uniforms, tents, leather boots, horse and mule saddles
• New factories were set up; old ones ran multiple shifts; workers worked longer hours
• Industrial production boomed
After the war: Manchester could never recapture its old position in the Indian market. Britain’s economy crumbled — unable to modernise and compete with the US, Germany and Japan. Within the colonies, local industrialists gradually consolidated their position, substituting foreign manufactures and capturing the home market.
| Concentration | About 67% of large industries in 1911 were located in Bengal and Bombay. Over the rest of the country, small-scale production continued to predominate. |
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| Factory Workers % | Only a small proportion of total industrial labour force worked in registered factories: 5% in 1911 and 10% in 1931. The rest worked in small workshops and household units in alleys and bylanes. |
While cheap machine-made thread wiped out the spinning industry in the 19th century, the weavers survived. In the 20th century, handloom cloth production expanded steadily — almost trebling between 1900 and 1940.
Reasons:
1. Fly Shuttle Technology: By the second decade of the 20th century, weavers used looms with a fly shuttle — increased productivity per worker, speeded up production, reduced labour demand. By 1941, over 35% of handlooms in India were fitted with fly shuttles; in Travancore, Madras, Mysore, Cochin, Bengal the proportion was 70–80%.
2. Specialised Products: Mills could not imitate specialised weaves. Saris with woven borders, famous lungis and handkerchiefs of Madras, could not be easily displaced. Famines did not affect sale of Banarasi or Baluchari saris.
3. Finer vs. Coarser: Demand for finer varieties (bought by well-to-do) was more stable than coarser cloth (bought by the rural poor).
When new products are produced, people have to be persuaded to buy them. Advertisements make products appear desirable and necessary — shaping minds and creating new needs. From the very beginning of the industrial age, advertisements played a part in expanding markets and shaping a new consumer culture.
When Manchester industrialists began selling cloth in India, they put labels on the cloth bundles. Labels made the place of manufacture and company name familiar to buyers, and served as a mark of quality. The words ‘MADE IN MANCHESTER’ in bold were expected to instil buyer confidence.
| Gods and Goddesses on Labels | Images of Indian gods and goddesses (Krishna, Saraswati, Kartika, Lakshmi) regularly appeared on labels — as if association with gods gave divine approval to goods being sold. Also made foreign manufactures appear familiar to Indian people. |
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| Historical Figures | Figures of emperors and nawabs adorned advertisements. Message: if you respect the royal figure, then respect this product. E.g., Maharaja Ranjit Singh on a Manchester label. God Vishnu on Sunlight Soap calendar (1934) — shown bringing sunlight from across the skies. |
| Calendars | By the late 19th century, manufacturers were printing calendars to popularise products. Unlike newspapers, calendars were used even by people who could not read. Hung in tea shops and poor people’s homes — forcing viewers to see advertisements day after day, through the year. |
| Baby Products | Image of baby Krishna was most commonly used to popularise baby products. E.g., Gripe Water calendar of 1928 by M.V. Dhurandhar. |
| Indian Nationalist Advertising | When Indian manufacturers advertised, the nationalist message was clear: ‘If you care for the nation then buy products that Indians produce.’ Advertisements became a vehicle of the nationalist message of swadeshi. E.g., An Indian mill cloth label showing a goddess offering cloth produced in an Ahmedabad mill and asking people to use things made in India. |
| Proto-Industrialisation | 17th–18th century; merchants employed rural artisans; no factories; London as finishing centre; each clothier controlled hundreds of workers |
|---|---|
| First Factories (Britain) | 1730s onwards; Richard Arkwright’s cotton mill; James Watt’s steam engine (1781); cotton led to 1840s, then iron & steel |
| Labour in Britain | Abundant cheap labour; no labour shortage; seasonal employment; Spinning Jenny (Hargreaves, 1764) faced worker resistance; after 1840s building boom employed many |
| Indian Textiles Pre-colonial | India dominated international textile market; Surat, Masulipatam, Hoogly as key ports; Rs 16 mn trade through Surat (17th c.) → Rs 3 mn by 1740s |
| EIC’s Control over Weavers | Gomastha system + advance system → weavers tied to Company; clashes; weavers migrated or took to agriculture |
| Manchester Competition | Piece-goods exports: 33% (1811-12) → 3% (1850-51); British cotton imports into India: 0% (18th c.) → 31% (1850) → 50%+ (1870s) |
| First Indian Factories | First Bombay cotton mill (1854); first jute mill Bengal (1855); first Ahmedabad cotton mill (1861); first iron & steel Jamshedpur (1912) |
| Workers | 1901: 584,000 factory workers; 1946: 2,436,000; mostly from surrounding districts; jobber system; tied to village |
| WWI Impact | Manchester imports declined; Indian mills got home market; industrial production boomed; Manchester never recaptured position |
| Small-scale dominance | 67% large industries in Bengal & Bombay (1911); only 5% of industrial workforce in registered factories (1911), 10% (1931) |
| Handloom Survival | Handloom cloth production nearly trebled (1900–1940); fly shuttle adoption (35%+ by 1941); specialised weaves mills couldn’t copy |
2. By turning one wheel, a worker could set in motion multiple spindles and spin several threads simultaneously.
3. Women workers in the woollen industry attacked the Spinning Jenny because it reduced labour demand.
4. It was first introduced in the cotton industry.
2. Many industries had seasonal demand, making it more practical to employ seasonal hand workers.
3. Upper classes preferred handmade products, and machine-made goods were primarily for export to colonies.
4. The British government banned the use of steam-powered machines in textile industries.
2. Indian factories supplied jute bags, army uniforms, tents, leather boots and saddles for war needs.
3. After the war, Manchester successfully recaptured its old position in the Indian market by 1925.
4. Cotton piece-goods production in India had already doubled between 1900 and 1912 even before the war.
Compiled and enriched for UPSC/State PCS preparation by Legacy IAS, Bangalore.
All images sourced from the NCERT textbook. This document is for educational purposes only.


