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RDL701 RURAL INDUSTRIALISATION: POLICES PROGRAMMES AND CASES Prof. Rajendra Prasad Centre for Rural Development and Technology * * * * * * * * There was a member of ... – PowerPoint PPT presentation

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PrasadCentre for Rural Development and
  • 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
  • Decivilization, dehumanization, crimes, wars,
  • Colonization, militarization, terrorization

  • 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
  • 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
  • World as a community

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

  • One of the most advanced and developed
    civilization, hence a accumulated source of
  • 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.

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

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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
  • 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

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

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

Tycho Brahe
  • Had two sets of astronomical tables one based
    on Ptolemys theory and one based on
  • 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,

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

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

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

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

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
  • 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

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

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.

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

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.

Conditions in the Countryside
  • The only successful farmers were those with large
    landholdings who could afford agricultural
  • 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.

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.

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.

The Condition of Labor
  • All working people, however, faced possible
    unemployment, with little or no provision for
  • 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

  • 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.

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).

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.

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.

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.
4.4 billion people live in developing countries.
Of these
Three-fifths lack basic sanitation
Almost one third have no access to clean water
A quarter do not have adequate housing
A fifth have no access to modern health services
The amount of money the UK spends On chocolate
each year could make Africa NOT live in poverty
... 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.
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
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
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
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.
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.
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
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.
           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.
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.        
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.
Poverty In India
  • Alex Lally and Ally Hannigan

  • 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

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

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

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

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

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

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

The Government of India says that 24 of Indias
population is below the poverty line.
Planning Commission of India, 1999-2000,
Government of India
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,
  • 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)

Despite such abysmal figures on Indias
development, how can the government claim that
only 24 of India is poor?Clearly something is
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.

I have learnt to seek my happiness by limiting
my desires rather than attempting to satisfy
  • John Stuart Mill

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
  • 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!

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.

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

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

Government of India (2005c) National Accounts
Statistics 2005,
The National Rural Employment Guarantee Scheme
  • The present NREGS guarantees one able-bodied
    member of each family work at a wage of Rs. 60 a
  • 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.

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.

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
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
  • 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.

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
  • Thus a weighted average of 49 of all households
    do not have shelter that meets our minimum

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
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
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
  • 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

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

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

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

  • 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.

Technology, Culture, and Empire The Colonial
  • 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
Empire of Changez Khan
Empire of Tamurlang
  • 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.

  • Company settlement made possible in Madras in
    1708 after grant of 5 villages by regime in
  • 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

  • Companys attempt to establish trade with China
    were unsuccessful
  • Tried to dispose English woollen cloth on
  • 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

  • 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
  • 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
  • It was concluded that no commodity brought out
    is staple enough to provide (in return) cargo for
    one ship

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

  • 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
  • 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
  • In fact between 1710 and 1745, India received
    17047173 pound in bullion.

  • 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
  • By 1764 Moghul emperor was forced to extend the
    revenue rights of the company to other
    territories in Bengal, Bihar and Orissa.

  • 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

  • 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

  • After the company took over the administration of
    Bengal, the once favourable balance of trade was
  • 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.

  • 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.

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

  • 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.

  • 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

  • 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
  • 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.

  • 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
  • The following discussion between Mr. Cope, a silk
    weaver in Britain, is not only significant, but
    has contemporary connotations too

  • 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.

  • 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

  • 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.

  • 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.

  • 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.

  • 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
  • This in turn would divert, labour from spinning
    and weaving to agriculture and so lead to an
    extension of areas under cultivation.

  • 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.

  • 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
  • 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
  • The multiplication of cotton mills came later in
    a decades time.

  • 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
  • After the end of civil war, there were bankruptcy
    but the mills survived.

  • 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

  • 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.

Heyne (1st September 1795)
  • Report of the Letchemporam Iron Works thinking
    that Indian manufacture, may prove of essential
  • 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.

  • 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.

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.

  • Smelting furnaces, crude in appearance, very
    exact in their interior proportions.
  • men ignorant of principle but construct them with
  • 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.

  • 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
  • Geometrical Construction of the Furnace

  • 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.

  • 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

  • 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
  • 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
  • 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.

  • 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.

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
  • 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
  • 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 )

  • 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

  • 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
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