RDL701 RURAL INDUSTRIALISATION: POLICES PROGRAMMES AND CASES

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RDL701RURAL INDUSTRIALISATION POLICES
PROGRAMMES AND CASESProf. Rajendra
PrasadCentre for Rural Development and
Technology
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MODERN INDUSTRILIZATION

• Synonymous with Development
• Phenomenon of last 3 centuries only
• Heavy utilisation of natural resources and hence
  there depletion
• Major cause of disparity and poverty among
  nations and within nations
• Adverse environmental impact- Pollution of land,
  air and water, greenhouse effect, ozone layer
  depletion, floods, melting of glaciers, soil
  erosion, deforestation
• Over mechanization, automation, excessive speed,
  mass production, global marketing, labour
  exploitation
• Decivilization, dehumanization, crimes, wars,
  conflicts
• Colonization, militarization, terrorization

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INDUSTRILIZATION

• Not synonymous with Development
• A part of human development
• Rational utilisation of natural resources and
  hence sustainable consumption
• Should not cause disparity and poverty rather
  harmony and prosperity among nations and within
  nations
• Eco-friendly, environmentally sustainable, non
  polluting for land, air and water
• Balanced mechanization and automation, affordable
  speeds, production by masses, local marketing but
  global welfare
• Cultural and civilization promoting based on
  human values minimising crimes, wars and
  conflicts
• World as a community

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BASIC ELEMENTS OF INDUSTRILIZATION

• Knowledge-Develops through civilization.
• Science- Develops through knowledge.
• Technology-Develops through application of
  science.
• Organization-Nation.
• People-Global.
• Resources-Mainly renewables and judicious use of
  non-renewables.

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INDIAN SITUTATION

• One of the most advanced and developed
  civilization, hence a accumulated source of
  knowledge.
• Indian Sciences may be different from modern
  sciences, particularly from its approach to
  looking at the reality. Probably a reached its
  zenith millenniums of years back but may be going
  down for the last few thousands of years.
• Technology simple, almost no cost, yet accurate
  and effective, well within the reach of a common
  person. Most of them in practice till a couple of
  centuries back.

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INDIAN SITUTATION (CONTD...)

• Organization- a very weak nation, still living in
  the colonial mentality despite political
  independence.
• People- second largest nation on the earth, huge
  markets, huge strength, huge skilled man- power
  unutilized.
• Resources- huge natural resources, both renewable
  and non-renewable, mostly exploited by others
  (nations).

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Geocentric (Ptolemaic) System

• The accepted model for 1400 years
• The earth is at the center
• The Sun, stars, and planets on their spheres
  revolve around the earth explains daily
  movement
• To account for unusual planetary motion epicycles
  were introduced
• Fit the Greek model of heavenly perfection
  spheres are the perfect shape, circular the
  perfect motion

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Heliocentric (Copernican) System

• Sun at center (heliocentric)
• Uniform, circular motion
• No epicycles (almost)
• Moon orbited the earth, the earth orbited the
  sun as another planet
• Planets and stars still on fixed spheres, stars
  dont move
• The daily motion of the stars results from the
  Earths spin
• The annual motion of the stars results from the
  Earths orbit

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Galileo Galilei

• Turned a telescope toward the heavens
• Made observations that
• contradicted the perfection of the heavens
• Mountains, valleys, and craters on the Moon
• Imperfections on the Sun (sunspots)
• Supported the heliocentric universe
• Moons of Jupiter
• Phases of Venus shows a full phase

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Tycho Brahe

• Had two sets of astronomical tables one based
  on Ptolemys theory and one based on
  Copernicus.
• He found that both tables predictions were off
  by days to a month.
• He believed that much better tables could be
  constructed just by more accurate observations.
• Tychos homemade instruments improved measurement
  precision from ten minutes of arc (which had held
  since Ptolemy) to less than one

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The Industrial Revolution

• Mechanization, Urban Growth, Proletarianization,
  Consumption

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A New Kind of Revolution
Main Idea In the 1700s conditions in Great
Britain led to the rapid growth of the textile
industry, which in turn led to huge changes in
many other industries.

• Reading Focus
• Why did the Industrial Revolution begin in Great
  Britain?
• How did industrialization cause a revolution in
  the production of textiles?
• How did steam power the Industrial Revolution?
• Where did industrialization spread beyond Great
  Britain?

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A Revolution in Great Britain
During the 1700s changes in technology began
based on the use of power-driven machinery. This
era is called the Industrial Revolution.
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Britains Big Advantage

• The Industrial Revolution began in Great Britain.
  
• Had essential elements for economic success
• Factors of production
• Land
• Labor
• Capital

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Find the Main Idea Why was Great Britain in the
1700s ideally suited to be the birthplace of the
Industrial Revolution?
Answer(s) Colonies around the world supplied raw
materials powerful navy and merchant fleet
facilitated trade waterways provided power and
transportation enclosure movement led to large
labor supply private investors provided funds
for investment coal and iron deposits provided
needed resources
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A Revolution in Textiles

• Textile Industry
• Beginning of Industrial Revolution
• Weaving was a cottage industry
• Labor performed at home
• Industrialization transformed this

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Identify Problem and Solution How did machines
solve problems that weavers faced?
Answer(s) spinning jenny and spinning frame spun
thread into yarn, "flying shuttle" and power loom
made weaving faster
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Steam Powers the Revolution
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Make Generalizations What impact did the steam
engine have on the growth of British industry?
Answer(s) major impact used in textile mills,
factories could be located away from rivers,
powered locomotives and ships, led to development
of coal as a resource, more factories built near
northern coal mines
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Industrialization Spreads
Industrialization soon spread to western Europe
and the United States. Other regions did not
industrialize in the 1800s. What was it about
Western countries that encouraged them to embrace
industry?
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Industry in Asia

• Eventually, industry spread to Asia.
• Japan first in 1868
• Meiji government
• The 1900sindustrialization for
• China
• India
• Russia

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Compare and Contrast How did
industrialization in Britain compare to the
process in America and Europe?
Answer(s) Britain industrialized first, America
and Europe benefited from earlier inventions
Lowell factory in Massachusetts was first
all-in-one mill political issues delayed
industrial development in continental Europe
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Mechanization

• During the first half of the 19th century, the
  European manufacturing process shifted from
  small-scale production by hand at home to
  large-scale production by machine in a factory
  setting.

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At the Expense of Workers

• The shift meant high quality products at
  competitive prices, but often at the expense of
  workers. For example, the raw wool and cotton
  that fed the British textile mills came from
• Lands converted from farming to sheep raising,
  leaving farm workers without jobs
• The southern plantations of the United States,
  which were dependent upon slave labor

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Urban Growth

• Those who could no longer make a living on the
  land migrated from the countryside to the cities
  to seek work in the factories.

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Population Growth

• At the same time, the population of Europe
  continued to grow.

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The Plight of the Cities

• The sheer number of human beings put pressure on
  city resources
• Housing, water, sewers, food supplies, and
  lighting were completely inadequate.

• Slums grew and disease, especially cholera,
  ravaged the population.
• Crime increased and became a way of life for
  those who could make a living in no other way.

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Conditions in the Countryside

• The only successful farmers were those with large
  landholdings who could afford agricultural
  innovations.
• Most peasants
• Didnt have enough land to support themselves
• Were devastated by poor harvests (e.g., the Irish
  Potato Famine of 1845-47)
• Were forced to move to the cities to find work in
  the factories.

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The Role of the Railroads

• The railroads, built during the 1830s and 1840s
• Enabled people to leave the place of their birth
  and migrate easily to the cities.
• Allowed cheaper and more rapid transport of raw
  materials and finished products.
• Created an increased demand for iron and steel
  and a skilled labor force.

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The Labor Force

• No single description could include all of these
  19th century workers
• Factory workers
• Urban artisans
• Domestic system craftsmen
• Household servants
• Miners
• Countryside peddlers
• Farm workers
• Railroad workers
• Variations in duties, income, and working
  conditions made it difficult for them to unite.

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The Condition of Labor

• All working people, however, faced possible
  unemployment, with little or no provision for
  security.
• In addition, they were subject to various kinds
  of discipline
• The closing of factory gates to late workers
• Fines for tardiness
• Dismissal for drunkenness
• Public censure for poor quality workmanship
• Beatings for non-submissiveness

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Prolitarianization

• During the century, factory workers underwent a
  process of proletarianization (i.e., they lost
  control of the means of production).

• Factory owners provided the financial capital to
  construct the factory, to purchase the machinery,
  and to secure the raw materials.
• The factory workers merely exchanged their labor
  for wages.

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Family Structures Changed

• With the decline of the domestic system and the
  rise of the factory system, family life changed.
• At first, the entire family, including the
  children, worked in the factory, just as they had
  at home.
• Later, family life became fragmented (the father
  worked in the factory, the mother handled
  domestic chores, the children went to school).

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Family as a Unit of Consumption

• In short, the European family changed from being
  a unit of production and consumption to being a
  unit of consumption alone.

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Gender-Determined Roles

• That transformation prepared the way for
  gender-determined roles.
• Women came to be associated with domestic duties,
  such as housekeeping, food preparation, child
  rearing and nurturing, and household management.
• The man came to be associated almost exclusively
  with breadwinning.

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Poverty
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Poverty is the lack of basic necessities that all
human beings must have food and water, shelter,
education, medical care, security, etc. A
multi-dimensional issue, poverty exceeds all
social, economic, and political boundaries. As
such, efforts to alleviate poverty must be
informed of a variety of different factors.
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4.4 billion people live in developing countries.
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Of these
Three-fifths lack basic sanitation
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Almost one third have no access to clean water
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A quarter do not have adequate housing
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A fifth have no access to modern health services
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WHY ?
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The amount of money the UK spends On chocolate
each year could make Africa NOT live in poverty
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... In 1997 the richest fifth of the worlds
population had 74 times the income of the poorest
fifth. ..The top three billionaires have assets
greater than the combined GNP of all least
developed countries and their 600 million people.
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Everyone has the right to a standard of living
adequate for the health and well-being of
him/(her)self and his/(her) family, including
food, clothing, housing and medical care and
necessary social services... Everyone has the
right to education.
Universal Declaration of Human Rights
WHAT CAN WE DO TO HELP THIS RULE HAPPEN?
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Percentage of people living below the poverty
line Europe and Central Asia 3.5 Latin
America and Caribbean 23.5 Sub-Saharan Africa
38.5 Middle East and North Africa 4.1 South
Asia 43.1
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Causes of third world poverty
Trade Third world countries lose out through
unfair trade agreements, lack of technology and
investment, and rapidly changing prices for their
goods.
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Work and globalisation Better communications and
transport have led to a globalised economy.
Companies look for low-cost countries to invest
in. This can mean that, though there are jobs,
they are low-paid.
War or conflict When a country is at war
(including civil war) basic services like
education are disrupted. People leave their homes
as refugees. Crops are destroyed.
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Debt Third world countries have to pay interest
on their debts. This means they cannot afford to
spend enough on basic services like health and
education nor on things like transport or
communications that might attract investment.
Land If you have land you can grow your own
food. But many people in the Third World have had
their land taken over by large businesses, often
to grow crops for export.
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HealthAffordable or free health care is
necessary for development. In poor countries the
percentage of children who die under the age of
five is much higher than in rich countries.
HIV/AIDS is having a devastating effect on the
Third World.
HIV is now the single greatest threat to future
economic development in Africa. AIDS kills adults
in the prime of their working and parenting
lives, decimates the work force, fractures and
impoverishes families, orphans millions...
Callisto Madavo, vice-president of the World
Bank, Africa region 1999
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Food and education Affordable, secure
food supplies are vital. Malnutrition causes
severe health problems, and can also affect
education. Without education it is difficult to
escape from poverty. This becomes a vicious
circle people who live in poverty cannot afford
to send their children to school.
Gender When we measure poverty we find
differences between the level experienced by men
or boys, and women or girls. Women may be
disadvantaged through lack of access to
education in some countries they are not allowed
to own or inherit land they are less well paid
than men.
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           Environment A child born in an
industrialised country will add more to pollution
over his or her lifetime than 30-50 children born
in the Third World. However, the third world
child is likely to experience the consequences of
pollution in a much more devastating way. For
example, annual carbon dioxide emissions have
quadrupled in the last 50 years. This contributes
to global warming, leading to devastating changes
in weather patterns. Bangladesh could lose up to
17 of its land area as water levels rise.
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Poverty Targets 2015 poverty targets Members of
the Organisation for Co-operation and Development
(OECD) agreed these after the 1995 Copenhagen
summit. They aim to reduce poverty in third world
countries by at least one half by 2015. 20/20
initiative At the same summit some governments
agreed that 20 of aid and 20 of the budget of
the developing country receiving that aid would
be spent on basic services.        
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Aid Access to basic services for everyone
would cost approximately US40 billion more per
year than is spent now. This is 0.1 of world
income. World military spending is US780 billion
per year. US50 billion is spent on cigarettes in
Europe every year. Fair trade Fair trade
guarantees higher, more stable prices for third
world producers. Look out for products with a
Fairtrade Mark.
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Poverty In India

• Alex Lally and Ally Hannigan

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General

• One fifth of the worlds people live on less than
  1 a day, and 44 of them are in South Asia
• 26 percent of India is below the poverty line
• This is happening in mainly in rural areas of
  India

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Poverty in the States of India

• One half of Indias poor is located the three
  states of Uttar Pradesh, Bihar, and Madhya
  Pradesh
• Maharashtra, West Bengal and Orissa account for
  22.5 of poverty

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Female Literacy and Infant Mortality Rates

• Lack of food and health care due to low
  income/assets is associated with the higher
  probability of a new born child dying between
  birth and the age of one
• The High Female illiteracy rate has a major
  impact on IMR
• If more women were literate the IMR would be much
  higher

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Why is this Happening

• Even though Indias economy is growing there
  wealth distribution is uneven
• 1/4 of the nation's population earns less than
  the government-specified 0.40/day
• Unemployment and underemployment
• Over-reliance on agriculture
• High population growth rate

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Cultural Reasons

• The Caste System(Hindu Religion) prevents people
  from educational, ownership, and employment
  opportunities

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What is Being Done

• Microfinance( very small loans) has helped India
  a lot
• There are multiple organization to help feed them
  and keep there agriculture going
• The Planning Commission sets up a five year plan
  for India to help them achieve goal such as
  ending poverty

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Positive Things Happening in India Middle Class

• Currently India adds 40 million people to its
  middle class every year
• estimated 300 million Indians now belong to the
  middle class
• one-third of them have emerged from poverty in
  the last ten years
• It is predicted that by 2025 the Majority of
  Indians will live in middle class

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The Government of India says that 24 of Indias
population is below the poverty line.
Planning Commission of India, 1999-2000,
Government of India
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However, we also know that

• 80 of India does not have access to public
  health facilities. (Dr. Anbumani Ramadoss,
  Minister for Health and Family Welfare)
• 47 of Indian children under the age of 5 years
  are undernourished. (Human Development Report
  2005, UNDP)
• 71 of the children in 15-19 age group have not
  completed a secondary education, their
  fundamental right. (National Sample Survey on
  Education, 1999-00, NSSO)
• 57 of India does not have access to electricity.
  
• (World Development Indicators 2005, World Bank)
• 70 of India does not have access to a suitable
  toilet. (National Sample Survey on Housing, 2004,
  NSSO)
• 49 of India does not have proper shelter.
• (National Sample Survey on Housing, 2004, NSSO)
• 38 of India does not have access to a nearby
  water source. (National Family Health Survey,
  1998-99, IIPS)

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Despite such abysmal figures on Indias
development, how can the government claim that
only 24 of India is poor?Clearly something is
amiss
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The answer lies in how poverty is defined in India

• The present poverty line is a conveniently low
  threshold based largely on only caloric norms.
• In fact, it should be called the starvation line.
• It does not factor in norms for nutrition,
  health, clothing, housing, education etc.
• Even worse is that the Planning Commission
  recognizes this shortcoming and yet doesnt do
  anything about it.

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I have learnt to seek my happiness by limiting
my desires rather than attempting to satisfy
them.

• John Stuart Mill

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What is this inadequate definition?

• In 1999-2000, the poverty line defined by the
  Government of India was Rs. 327 and Rs. 454 per
  month per capita in rural and urban India
  respectively.
• Adjusting for inflation, this now comes to Rs.
  368 and Rs. 559.
• Thus ONLY those who live below Rs. 559 a month in
  our cities (or Rs. 368 in our villages) are
  considered to be poor by the Indian Government!

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How is this starvation line calculated?

• The present line is based on the norm that the
  average person in rural India should consume 2400
  calories a day and a person from urban India
  should consume 2100 calories a day.
• The minimum cost of obtaining such nutrition
  (about 650 grams of grains) was calculated in
  1979 when this line was formed.
• All those who spent less than this amount on food
  were considered poor.
• Since then, this amount was periodically updated
  based on inflation.

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The inadequacy of the present poverty definition

• The definition is based on a caloric norm that
  is 3 decades old!
• Research shows that even those who are currently
  above the poverty line do not meet the prescribed
  caloric norms.
• Calories are anyway an insufficient nutritional
  norm as it does not include the need for
  minerals, vitamins, etc.
• Most importantly, no norms for other basic needs
  such as healthcare, shelter, electricity,
  education have been factored in.

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The story of Indias poor

• Even though there has been a decline in the
  number of poor in percentage terms the absolutes
  numbers remain quite high.
• The absolute number of poor declined from 32
  crores (out of the 58.4 crores population) in
  1973 to 24.97 crores (out of 109 crores
  population) in 2004.
• The annual decline is a mere 0.81

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How defining poverty affects policy

• The present inadequate definition of poverty has
  ensured that all policies aimed at alleviating
  poverty aim much too low.
• They focus just on the elimination of hunger
  rather than on eliminating poverty as a whole.
• If every starving person was given 650 gms of
  food grains daily it would cost Rs. 57000 crores
  a year.
• Total wage bill of babus is over Rs. 220,000
  crores.

Government of India (2005c) National Accounts
Statistics 2005,
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The National Rural Employment Guarantee Scheme
(NREGS)

• The present NREGS guarantees one able-bodied
  member of each family work at a wage of Rs. 60 a
  day.
• Therefore even if this person works on all 30
  days of a month, he/she earns only Rs. 1800.
• For a family of 5, that amounts to Rs. 360 per
  person, which is exactly what the rural poverty
  line is right now.
• Therefore, this at best only ensures that each
  person in the family consumes a certain quantity
  of food grains. Moreover, the guarantee is only
  for 100 days in a year leaving the poor to fend
  for themselves for the rest of the 265 days.

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Towards a more realistic definition of Poverty

• We should aim to define poverty that visualizes
  it in a more human and humane way.
• CPAS poverty line includes the cost of a
  nutritious diet, healthcare, clothing, etc.
• We have also included those items that cannot be
  described monetarily such as access to water,
  housing, education, etc.

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I. Nutritional norms and costs

• The National Institute of Nutrition (NIN)
  postulates what it considers is a nutritious diet
  for healthy living.
• Along with this information and the prices of
  various food items (obtained from various
  official sources), one can calculate the cost of
  this diet.
• Using the age-sex distribution information of the
  population, one can calculate that the per capita
  expenditure on food that provides for the
  recommended balanced diet for the average Indian
  person should be around Rs. 573 per month.

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II. Meeting basic health needs

• Average monthly per capita healthcare cost can be
  calculated by multiplying the probability of
  requiring medical care with the actual cost of
  such medical care. This is called the expected
  value of healthcare expenditure.
• The Universal Health Insurance Scheme is a
  health insurance scheme targeted at the
  low-income group. As per this scheme, for a
  premium of Rs. 365 per annum, an individual can
  get insured for all in-patient medical care up to
  a sum of Rs. 30,000.
• Therefore Rs. 365 per annum or Rs. 30 per month
  per capita is the expected value of health
  expenditure for the poor in India.

Ahuja, Rajeev (2004) Health Insurance for the
Poor in India, Working Paper No. 123, Indian
Council for Research on International Economic
Relations.
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III. Access to water

• The minimum water consumption as per the World
  Health Organisation should be about 50 litres a
  day per person to cover consumption and hygiene
  needs.
• However, as per the latest National Family Health
  Survey of 1999-00, 37.7 of households do not
  have access to safe water supply within 15
  minutes of their home
• You cannot put a price on this.

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IV. Access to shelter

• Detailed qualitative information about housing in
  India is hard to come by. However, there is
  information on the percentage of households
  living in pucca, semi-pucca or katcha
  houses from a nationwide survey on housing done
  in 2002
• In rural and urban areas, 64 and 23 of the
  households respectively do not have a pucca
  house.
• Thus a weighted average of 49 of all households
  do not have shelter that meets our minimum
  standards.

Government of India (2004b) NSS Report No. 488
Housing Condition in India, Housing Stock and
Constructions, NSS 58th Round, July 2002-December
2002, National Sample Survey Organisation, New
Delhi.
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V. Sanitation

• The condition of public sanitation is extremely
  poor in India. Even the most basic living
  standard demands that a dwelling unit should have
  access to a latrine that is either connected to a
  sewage line or a septic tank.
• However, 89 per cent and 37 per cent of rural and
  urban India, respectively, or a weighted average
  of 69.5 per cent of Indians, do not have access
  to such a latrine facility.

Government of India (2004b) NSS Report No. 488
Housing Condition in India, Housing Stock and
Constructions, NSS 58th Round, July 2002-December
2002, National Sample Survey Organisation, New
Delhi.
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VI. The cost of energy

• Presently, about 57 per cent of Indian households
  do not have electricity.
• Even in households that have an electricity
  connection, the supply of electricity is
  extremely erratic.
• With minimal fittings and reasonable usage, the
  monthly cost on electricity comes to Rs. 175 for
  a household.
• Considering that there are 4.99 persons to a
  household in India, the per capita monthly
  expenditure on electricity comes to Rs. 35.

Government of India (2003) Electricity Act,
2003, Ministry of Power, New Delhi Rate list
printed by BSES, 2005
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VII. Clothing requirement

• Calculating the basic need of clothing is
• difficult, as requirements vary considerably
  according to region, gender, age and culture.
• We calculated the minimum amount of cloth
  required and its cost for persons by age and
  gender living in the plains.
• The weighted average of the total costs came to
  Rs 207 per annum on clothing.

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VIII. The right to education

• About 71.16 of the people in the 15-19 year age
  group had not completed a secondary
  education(1999-00).
• It should be the minimum responsibility of the
  State to ensure that each young citizen has
  access to cost-free schooling with adequate
  infrastructure and qualified teachers.
• Moreover, such an institution should lie within a
  2 km radius of each persons home so as to ensure
  not more than 30 minutes are spent walking to
  school.

National Sample Survey on Education in 1999-00
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IX. Access to an All-Weather Road and Public
Transport

• Connectivity is probably the single most
  important factor guiding whether people of a
  particular region are being able to access their
  basic needs of education, healthcare, shelter
  etc.
• Around 43 of Indian villages or over 2,70,000
  villages are not connected by road.
• Furthermore, around 25 of villages that have a
  population of over 1000 are not connected by
  road.

Lok Sabha Starred Question No. 238, dated
13.03.2001. Government of India (2002b)
National Human Development Report, Planning
Commission, New Delhi
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X. Miscellaneous expenditures

• The total cost of obtaining the four quantified
  variables namely nutrition, healthcare,
  clothing and energy consumption comes to Rs. 675
  per person per month.
• Apart from this there are miscellaneous
  expenditures
• This paper includes expenditure under the heads
  of miscellaneous consumer goods, miscellaneous
  consumer services and durable goods.
• The total monthly miscellaneous expenditure comes
  to Rs. 164 per person.

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The bare truth

• 37.7 of Indian households do not have access to
  a nearby water source,
• 49 do not have a proper shelter,
• 69.5 do not have access to suitable toilets,
• 85.2 of Indian villages do not have a secondary
  school and
• 43 of Indian villages do not have an all-weather
  road connecting them.

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The redefined poverty line

• Summing up minimum costs for nutrition (Rs. 573),
  health (Rs. 30), clothing (Rs. 17), energy
  consumption (Rs. 55) and miscellaneous
  expenditure (Rs. 164) the poverty line in India
  should be about Rs. 840 per capita per month.
• The actual sum is Rs. 839 we round it off for
  convenience.

127

• A person is poor in India if he or she has a
  monthly per capita expenditure lesser than Rs.
  840 OR does not have access to either drinking
  water proper shelter sanitation quality
  secondary education or an all-weather road with
  public transport.

128
Technology, Culture, and Empire The Colonial
Age
129

• In 1498 Vasco da Gama opened sea route to India
• Before 1498, the civilizations of Europe and
  India virtually, and in a greatly limited sense,
  geographically isolated from one another.
• Rise of Islam Changez Khan and Temurlang.
• Even after 1498, in fact till the year 1800, the
  relation between East and west still continued to
  be conducted within a framework and on terms
  established by Asian nations.

Vasco da Gama
130
Empire of Changez Khan
Empire of Tamurlang
131

• For the two hundred and thirty years after
  Albuquerques disastrous attempt to challenge the
  power of the Zomorin of Calicut (1506)-he had to
  be carried unconscious to his ship-no European
  nation attempted any military conquest or tried
  to bring any ruler under control. In 1739, for
  example, the Dutch who came up against the Raja
  of Travancore had to surrender.

132

• Company settlement made possible in Madras in
  1708 after grant of 5 villages by regime in
  Delhi.
• In addressing the Emperor one of the Englishmen
  described himself as the smallest particle of
  sand, John Russell, President of East India
  Company with his forehead at command rubbed on
  the ground
• Europe at the time had but little to offer to
  Asian Countries
• Founding of East India Company in 1600

133

• Companys attempt to establish trade with China
  were unsuccessful
• Tried to dispose English woollen cloth on
  spice-islander
• Discovered only commodity acceptable was Indian
  textiles and it prompted it to seek a market for
  its woollen goods in India
• Ideas was to buy inn return the Indian cotton and
  silks wanted by spice-islands
• English ships reached Surat (Gujarat) in 1608.
• In 1611 the company's factor wrote top directors
  in England Concerning cloth, which is the main
  staple commodity of our land.....it is so little
  regarded by the people of this country that they
  use it but seldom

134

• Decade later company abandoned hope for big Asian
  market for English cloths
• Some other commodity had to be battered if
  company wished to get hands on spices and pepper
  of Malay
• Other alternatives looking glasses, sword
  blades, oil paintings, drinking glasses,
  quicksilver, coral and lead.
• To simulate the demand for English lead, it was
  decided to send out plumbers to teach them the
  use of pumps for their gardens and spouts on
  their houses.
• Followed by scheme to persuade Jahangir to pay
  for erection of waterworks for the supply of
  Agra.
• London Directors heard Indians are
  superstitious and wash their hands whenever they
  go to their worship, immediately ordered the
  dispatch of a consignment of wash-basin for trial
  sale
• It was concluded that no commodity brought out
  is staple enough to provide (in return) cargo for
  one ship

135

• Company was compelled to fall back on the export
  of bullions (in form of gold and silver) for
  purchase of goods in India

136

• The Moghul empire declined in the first half of
  the eighteenth century more precisely, effective
  central control over the Empires territories was
  loosened and lost after the death of Bhadur
  Shah-I in 1712.
• The decline of central Moghul power did not mean
  much to economy is evident from a quick look at
  the trade figures of the economy after Moghul
  decline.
• In 1708, Britain imported goods from India worth
  4,93,257 pounds and exported in return goods
  worth 1,68,357 pounds.
• By 1730, while the imports to England rose to
  10,59,759, the exports fell to 1,35,484 pound .
• In 1748, imports into Britain were still
  10,98,712 and the exports had declined further to
  27224 pounds. The balance was paid by Britain in
  bullion.
• In fact between 1710 and 1745, India received
  17047173 pound in bullion.

137

• By 1757, the East India Company, with the support
  of a powerful Hindu capitalist, had gained a
  foothold in politics of Bengal.
• Hindu merchants were keen to associate with
  foreigners to reap huge profits.
• The east India company received the right of
  revenue of a district the twenty-four
  Pargannahs.
• By 1764 Moghul emperor was forced to extend the
  revenue rights of the company to other
  territories in Bengal, Bihar and Orissa.

138

• The companys early administered in Bengal is too
  sordid it used its monopoly positions to impose
  taxes of numerous kinds on different products
  including salt, betelnut, tobacco .
• The Indian textile industry declined before the
  industrial revolution in Britain. The
  displacement of Muslim aristocracy simultaneously
  displaced domestic demand.
• A famine in Bengal in 1770 decreased Bengals
  population by a third.
• The companys behaviour toward the weaver was
  deleterious.

139

• Political power of English allowed entire good to
  be sold to them.
• A document of that time noted they
  trade.....in all kind of grains, linen and
  whatever other commodities are provided in the
  country. In order to purchase these articles,
  they force their money on the riots and having by
  these oppressive methods bought the goods at a
  low rate, they oblige the inhabitants and the
  shopkeepers to take them at a high price,
  exceeding what is paid in the markets. There is
  now scarce anything left in the country

140

• After the company took over the administration of
  Bengal, the once favourable balance of trade was
  reversed.
• In 1773, a report made to parliament calculated
  revenue collections to be 1,30,66,761 pounds for
  six years. And expenditure was 90,27,609 pounds.
  Company was left with 40,37,152 pounds.
• This surplus was used to purchase Indian products
  for exports into Britain thus did the colonial
  drain begin.

141

• Bengal had a surplus on trade with other parts of
  India and these revenues were used by East India
  Company to finance military campaign in Madras
  and Bombay.
• Also to finance local cost of servants and
  private traders.
• The annual net transfer of resources to the U.K.
  Amounted to about 1.8 million pounds in 1780.
• Indian cotton manufactures continued to be to be
  imported into Britain.
• It reached peak in 1798 and in 1813 it was about
  2 million pounds.

142

• Industrial revolution in England revolutionized
  textile industry, the cost dropped to nearly
  nine-tenths.
• But Indian goods were still in demand WHY?
• Even thirty years after industrial revolution,
  Indian goods were still cheaper than machine made
  goods.
• This was due to the fact that the weaving process
  in England was not extensively mechanized.

143

• Historian H.H. Wilson said It was stated in
  evidence ( In 1813) that the cotton and silk
  goods of India up to the period could be sold
  for a profit in the British market at a price
  from 50 to 60 per cent lower than those
  fabricated in England. It consequently became
  necessary to protect the latter by duties of 70
  and 80 per cent on their value, or by positive
  prohibition. Had this not been the case, had not
  such prohibitory duties and decrees existed, the
  mills of Paisley and Manchester would have been
  stopped in their outset, and could scarcely have
  been again set in motion even by the power of
  steam. The foreign ultimately strangle a
  competitor with whom he could not have
  contended on equal terms.

144

• In Britain, the power-loom was being used on a
  wider scale after 1815.
• In 1814, the quantity of cotton goods exported
  to India from Britain had been a mere 818,208
  yards in 1835, the figure had risen to
  51,777,277 yards.
• Duties on Indian goods imported into Britain were
  finally repealed in 1846, when Britain legally
  accepted the laissez-faire ideology
• By then, the British factory systems foundations
  had been firmly cemented
• There still remained the problem of silk fine
  silks could not be woven by power
• Yet a great deal of raw silk had been
  continuously imported into Britain in the 1820s,
  where it was worked and later exported to
  European markets

145

• Till the thirties, British silk goods had done
  well in France, where Indian goods were
  officially prohibited.
• Once the prohibition was removed, the entire
  British trade collapsed in favor of Indian silks.
• The export of raw silk from India began to
  decline in 1829, India had exported silk worth
  920,000.
• By 1831, this raw silk export had fallen to
  540,000 more raw silk was being used in India
  for manufactures for export
• In 1832 British silk exports to France had been
  valued in the region of 5,500 and Indias stood
  at 168,500.

146

• The duty on Indian finished silk goods into
  Britain was fixed at 20 per cent.
• While British finished silk goods to India paid a
  nominal duty of about 3-1/2 per cent.
• A proposal to equalize the duties was rejected
  by a Select committee, to protect British
  labourers.
• The following discussion between Mr. Cope, a silk
  weaver in Britain, is not only significant, but
  has contemporary connotations too

147

• Mr. Brocklehurst What would be the effect upon
  this branch of your trade if the present duty on
  East Indian silk goods were reduced from 20 to
  3-1/2 per cent?
• Mr. Cope In my opinion, it would have the
  effect of destroying this branch to trade and if
  so it would rob of their employment, and
  consequently of the means of living honestly by
  their labour, all those parties which I have
  named, and would make them destitute and
  reckless, and cause them to become a burden to
  the rest of society, whose burdens are already
  too heavy. It would throw out of employment a
  large amount of capital and would give into the
  hands of foreigners that employment by which we
  ought to be supported.
• Mr. Elliott Do you think that a labourer in this
  country who is able to obtain better good has a
  right to say, we will keep the labourer in the
  East Indies in that position in which he shall
  be able to get nothing for his food but rice?
• Mr. Cope I certainly pity the East Indian
  labourer , but at the same time I have a greater
  feeling for my own family than for the East
  Indian labourers family I think it is wrong to
  sacrifice the comforts of my family for the sake
  of the East Indian labourer Because his
  condition happens to be worse than mine and I
  think it is not good legislation to take away our
  labour and to give it to the East Indian because
  his condition is worse than ours.

148

• There is a clear pattern in the attempts by
  British manufacturers to convert India after 1813
  into a complementary satellite economy providing
  raw materials and food for Britain and an ever
  widening market for its manufactures.
• Twenty years after the enshrining of the free
  trade legacy, Richard Cobden, one of the chief
  pillars of the Manchester school suggested that
  the principles of adam Smith did not govern
  relations between Great Britain and India.
• In 1862, Thomas Bazley, the President of the
  Manchester Chamber of Commerce, had already
  decide that the great interest of India was to
  be agricultural rather than manufacturing and
  mechanical

149

• The free traders with their laissez-faire
  attitudes were irked beyond reason by those
  nominal duties the Indian colonial government
  levied on English imports into India.
• As Harnetty notes The full development of India
  as a source of agricultural raw materials (and
  this meant, of course, cotton) was inhibited by
  the Indian cotton duties which, by protecting
  native manufactures, caused the consumption in
  India of large quantities of raw cotton that
  otherwise, i.e., under free competition would
  be exported to Great Britain. It followed that
  the duties must be abolished, thereby enhancing
  the supply of cotton for british industry and
  enlarging the market in India for British
  manufacturing goods. Such a policy could be
  justified on theoretical grounds by the doctrine
  of free trade.

150

• But to encourage India as a producer of raw
  materials required more than economic freedom. It
  also involved a contradictory policy of
  governmental paternalism. Lancashire demanded
  that the Government of India inspire the
  development of private enterprise in the Indian
  empire by financing some of this development. In
  line with this demand. The authorities in India
  guaranteed railway construction and undertook
  numerous public works. They also undertook the
  experimental cultivation of cotton and, in this
  connection, made the first attempt at state
  interference in India in the fields of
  production, marketing and trade
• In 1860, the East India and China Association was
  still protesting that a new increase in the
  cotton duties in India (necessitated by a deficit
  in the Indian budget) would give a false and
  impolitic stimulus to yarn spun in India, thereby
  serving to keep alive the ultimately unsuccessful
  contest of manual power against steam machinery.

151

• Another petition from the Manchester chamber of
  Commerce in 1860 could continue to claim that any
  new tariff on British imports into India would
  harm not only the manufacturer of Great Britain
  but also the population of India by diverting
  their industry from agricultural pursuits into
  much less productive channels under the stimulus
  of false system of protection.
• Sir Charles Trevelyan, finance minister of India
  in 1860s, was anxious to see the disappearance of
  Indian weaver as a class, a development he
  thought best for both Britain and India.
• India would benefit because of weaver, faced with
  competition from machine made goods, would be
  forced to give up his craft and turn to
  agriculture the increased labour supply would
  then raise output and England would benefit since
  makers of cloth would be converted into consumers
  of Lancashire goods.

152

• It comes as no surprise to learn that when the
  cotton duties were totally abolished in 1882.
• The viceroy of India at that time, lord Ripon was
  privately willing to admit that it was pressure
  rather than fiscal arguments which had led to
  their general repeal, and that India had been
  sacrificed on the altar of Manchester.
• Chief commissioner of central province argue that
  construction of a railway would not only secure
  the more rapid export of raw cotton but also
  would lower the cost of imported Lancashire piece
  goods.
• This in turn would divert, labour from spinning
  and weaving to agriculture and so lead to an
  extension of areas under cultivation.

153

• The Scottish firm Fergusson Co. Established the
  first cotton mill in India at Bowreah, Calcutta
  with 20,000 spindles and 100 looms.
• Fergusson Co. Also imported Scottish lassies to
  work as operatives in the mill-to begin with it
  was shutdown in 1840.
• In 1817, the semi-fuedal labour-thekedar
  apparently had yet not made his appearance,
  bringing with him the impoverished peasant to be
  turned to industrial worker with option of
  starvation, and bare subsistence under the
  asurious board of the thekedar and his principal-
  a legacy which still continues
• It was in 1859 that the full implication of a
  restless, alienated, mobile rural manpower were
  realized, not surprisingly in Bengal through the
  enactment of the permanent tenancy laws.

154

• In 1829, at Pondicherry the second cotton mill
  was opened, in 1830 another at Calcutta with its
  supply from south.
• These mills were producing yarn primarily for
  china market and had local advantage of reduced
  freightage.
• The task of displacing the weaver and the spinner
  was being pursued by imported piece-goods
  especially at urban centres.
• The task of collection and distribution of raw
  cotton was done among others by the mill owners
  themselves.
• The multiplication of cotton mills came later in
  a decades time.

155

• The German war broke out, and with it started the
  hemp supply from Russia to mills in Dundee
• Feudal Russia converted itself into a semi-feudal
  one with its program of import of continental
  capital and equipment and machinery.
• The disrupted cotton supplies from American slave
  plantation, following civil war in USA
  (1861-1865), stimulated a cotton epidemic in
  India.
• After the end of civil war, there were bankruptcy
  but the mills survived.

156

• The bankruptcy of 1865 must have left a deep and
  lasting impressing on Jamshed Tata, then cotton
  merchant, who had been rescued by his income from
  army supplies.
• In 1860 Jamshed Tata bought an old cotton mill at
  Bombay and try to recondition it. In 1877 he
  started the empress mills at Nagpur, well in the
  interior of cotton growing area with Tata as
  managing agents to it
• By 1989 there had been 17 cotton mills with 4
  lakh spindles, 4600 looms and 10,000 as labour
  force, along with European mangers, engineers and
  technician

157

• Till 1900 domestic consumption totally from
  handloom, mills mainly for china market.
• In 1927 cloth woven by handloom continued to
  supply 26 of total cloth consumption in country.
• In 1930, Arno Pearse, a Manchester man, made a
  study tour in India to observe its cotton
  industry. it is estimated, he wrote that
  there are in India intermittently at work
  5,00,00,000 spinning wheels (charkhas) which
  yield 48 lbs of yarn per spindle per year, and
  almost 20,00,000 handlooms.

158
IRON WORKS AT RAMANAKAPETTAH By Dr. Benjamin
Heyne (1st September 1795)

• Report of the Letchemporam Iron Works thinking
  that Indian manufacture, may prove of essential
  benefit.
• Excursion to the diamond mines of Mallavilly,
  proved favorable.
• Learned on the road, that many places in the
  Noozeed Zemindary, furnished iron for common use
  nearest place was Ramanakapetth.
• 3 coss from Noozeed in the vicinity of some fine
  large tanks, from which in favorable seasons a
  very sufficient quantity of water might be
  furnished to produce a very plentiful harvest
  of paddy.
• Much better buildings than Noozeed. The streets
  very broad, houses good and large.

159

• Famine of 1790-2 reduced the population from
  1,00,374 in 1786 to 57,865 at the end of 1793.
• Before the famine there were 40 smelting
  furnaces, a great number of silver and copper
  smiths, in a state of affluence their survivors
  now poor, in a wretched situation.
• Furnaces now reduced to ten.
• I maund, sold for 2 rupees this place, found
  eminently deserving of notice, in the event of
  adopting for any large works of this kind, in
  the Companys possessions. The ore can be
  procured in any quantity, at a less expense than
  anywhere else. The nearest hills afford wood for
  coals in plenty many people who would be glad to
  be employed in a business.
• Six more in the Noozeed country where iron is
  constantly fabricated.

160
The MODE OF MANUFACTRING IRON IN CENTRAL INDIA By
Major James Franklin, Bengal Army, F.R.S,
M.R.A.S., (1829)

• Opportunity afforded by the Government of Bengal
• Survey of districts of Jabalpur, Baragaon, Panna,
  Katola, and Sagur.
• 170 sers of ore, smelted by 140 of charcoal,
  produced 70 sers of crude iron in ten hours.

161
FURNACES

• Smelting furnaces, crude in appearance, very
  exact in their interior proportions.
• men ignorant of principle but construct them with
  precision.
• unit of measure breadth of a middle sized man's
  finger 24 of which constitute their large and 20
  their small cubit a constant ratio of 6 to 5
• it is of the least consequence that their
  dimensions are larger or smaller, so long as all
  the parts are in the same proportion.
• length of these measures on an average 19.20
  English inches for large cubit, 16 English inches
  for small one.

162

• As no standard measure, fingers, span and arm
  substituted by a piece of stick used in practice.
• large one divided into six parts and small one
  into five, of four fingers each
• length of these parts on an average 3.20 English
  inches.
• Geometrical Construction of the Furnace

163

• Draw a line A.B. equal to a large cubit of 24
  digits or 19.20 English inches
• divide it into 6 parts
• at C erect a perpendicular.
• At C to E set off 6 parts, and it will mark the
  central point of the greatest bulge and
  consequently the point of greatest heat.
• From E set off 6 more points, and it will mark
  the point of cremation
• F to G, 6 parts more, will mark the line, where
  it is necessary to recharge the furnace, after
  the burden has sunk thus low.
• G to D-two parts more will give the
  perpendicular height of the furnace, in 20 parts
  equal to 5 feet 4 inches of English measure.

164

• To construct the interior, rule lines parallel to
  the base, through points E, F, G, and D, and from
  D. (fig 1) set off three parts to the left hand
  for the top.
• bisect it at J, bisect also the bottom at H.
• draw H, J, right angled at K, the oblique axis of
  the furnace (fig 1. K-J) bisecting all the
  parallels corresponding with CD (fig 2).
• make the parallels AB six parts,-E six parts, F
  five parts, and D three parts.
• rule lines through all these points.
• geometrical outline will be completed

165

• Appendages-Gudaira, Pachar, Garrairi, and Akaira.
• Akaira most extraordinary implement. (Diagram I,
  figs 4 and 5 and Diagram II. fig 1)
• externally a clumsy mass of clay enveloping the
  wind tubes (Diagram I. fig 9) the complete fusion
  of this mass, and the perfect completion of the
  smelting process must be simultaneous
• if it is too small, or too large, its effect will
  immediately be perceived in the former case the
  masset of crude iron will be full of impurity,
  and in the latter the iron will be consumed, and
  if it cracks during the operation of smelting, no
  remedy-short of dismantling the furnace and
  commencing the work again.

Diagram II
166

• mean length 4-1/2 parts, breadth 3 parts, and
  mean thickness 1-1/2 parts
• exactly equal a twentieth part of the cubic
  content of furnace.
• Guddaira-wedge of clay used to adjust the
  vertical position of Akaira when placed in the
  furnace.
• Pachar an oblong plate of clay, used in walling
  up the orifice after the Akaira is placed,
• Gurairy (diagram I, fig 6) a convex plate of
  clay perforated with holes and used as a grate.

167
BELLOWS

• Made of a single goat skin, 7 parts in breadth
  when doubled, and 8 parts in length for circular
  bellows of 5 parts diameter, rise 6 parts in
  height- having 11-1/4 circular folds the wooden
  nozzles through which the blast is conveyed into
  the furnace through Akaira.

168
Nozzle of the Bellows

• Geometrically-rule a line AB equal 3 parts
  (Diagram III, fig 2).
• divide it into four, giving one of those
  divisions to each of the legs, and two for the
  space in the centre.
• set off a perpendicular from C to D equal 3
  parts.
• bisect it and the middle point will mark the apex
  of the central angle.
• through point D rule a line parallel to AB and
  from it as a centre set off each way 3/4 of a
  part making together 1-1/2 parts
• divide it also into four, giving one of each to
  the legs, and two for the space in the centre.
  Rule lines to connect all these points,
• Outline complete, the exterior of the implement
  is plain but the interior is complex (Diagram II
  fig 3).

Diagram III
169

• fastened to the bellows by leathern thongs,
• blast forced through it at an angle of 24 degrees
  but when it is luted to the wind tubes of the
  Akaira, the blast enters the furnace at an angle
  of 12 degrees, both vertically and
  horizontally-because those tubes are placed so as
  to reduce that angle (Diagram III fig 1 )

170

• furnace closed up with clay, and the bellows
  luted in, represented in Diagram III and IV the
  dotted lines showing the chimney, A the outer
  walls, B a mound of earth to strengthen walls, C
  an upper chimney of moveable bricks, D planks
  laid across the trench to support the bellows and
  the man who works them, E a stone supporting one
  end of the plank, F fork branches supporting an
  iron bar on which the other end of planks rests,
  and G a simple apparatus for preventing the
  bellows from rising from the planks when they are
  worked.

171

• The angle of the blast is also worthy of notice,
  as well as the simplicity by which both it and
  the obliquity of the furnace is obtained all
  these serve to show that the original plan of
  this singular furnace must have been the work of
  advanced intelligence, and that its geometrical
  proportions have been preserved by simple
  measures hence though its original form may be