PowerPoint Presentation: The Age of Industrialisation Vinod Kumar Socialscience4u.blogspot.com PowerPoint Presentation: Before the Industrial Revolution Proto Industrialization large scale industrial production for - Workers not producing for themselves but for an international market. not based on factories. Guilds Associations of producers that trained craftspeople, maintained control over production, regulated competition and prices and restricted the entry on new people into the trade. Rulers granted different guilds the monopoly right to produce and trade in specific products. PowerPoint Presentation: New Merchants turned to the countryside With the expansion of world trade and the acquisition of colonies in different parts of the world, the demand for goods began growing. But merchants could not expand production within towns. This was because here urban crafts and trade guilds were powerful. It was very difficult for new merchants to set up business in towns. So they turned to the countryside. Artisans at countryside were willing to work for the merchants Open fields and commons were disappearing Cottagers and poor peasants had to now look for alternative sources of income When merchants offered advances, peasants households eagerly agreed This income supplemented their shrinking income from cultivation - Fuller use of their family labor resources PowerPoint Presentation: Relationship developed between the town and the countryside Merchants were based in towns. A merchant clothier in England purchased wool from a wool stapler, and carried it to the spinners; the yarn that was spun was taken in subsequent stages of production to weavers, fullers and then to dyers. The finishing was done in London before the export merchant sold the cloth in the international market. Cotton value chain PowerPoint Presentation: The Coming Up of the Factory The earliest factories in England came up by the 1730s. The first symbol of the new era was cotton. Its production boomed in the late nineteenth century, which was linked to a number of changes within the process of production. A series of inventions in the eighteenth century increased the efficacy of each step of the production process. Richard Arkwright created the cotton mill. The costly new machines could be purchased, set up and maintained in the mill. When all the processes were brought together under one roof and management, it allowed a more careful supervision over the production process, a watch over quality, and the regulation of labor. In the early nineteenth century, factories increasingly became an intimate part of the English landscape. First cotton mill in Lancashire, England Industrial Manchester by M. Jackson, 1857 Richard Arkwright’s cotton mill PowerPoint Presentation: The Pace of Industrial Change Cotton was the leading sector, up to the 1840s. After that the iron and steel industry led the way. The new industries could not easily displace traditional industries. At the end of the nineteenth century, less than 20 per cent of the total workforce was employed in technologically advanced industrial sectors. The pace of change in the ‘traditional’ industries was not set by steam-powered cotton or metal industries, but they did not remain entirely stagnate either. Seemingly ordinary and small innovations were the basis of growth in many non-mechanized sectors. New technology was expensive and merchants and industrialists were cautious about using it. The machines often broke down and repair was costly. At the beginning of the nineteenth century, there were no more than 321 steam engines all over England. Steam engines were not used in any of the other industries till much later in the century. A fitting shop at railway works in England Spinning factory in 1830 PowerPoint Presentation: Hand Labor and Steam Power Industrialists initially were not much interested in mechanization – Industrialists had no problem of labor shortage of high wage costs. They did not want to introduce machines that got rid of human labor and required large capital investment. In industries where production fluctuated with the season, industrialists usually preferred hand labor, employing workers for the season. Machines were oriented to producing uniforms, standardized goods for mass market. But the demand in the market was often for goods with intricate designs and specific shapes. These required human skill, not mechanical technology. Handmade products came to symbolize refinement and class. They were better finished, individually produced, and carefully designed. Machine made goods were for export to the colonies. PowerPoint Presentation: Life of the Workers Many job-seekers had to wait weeks, spending nights under bridges r in night shelters. Some stayed in Night Refuges that were set up by private individuals; others went to the Casual Wards maintained by the Poor Law authorities. Seasonality of work in many industries meant prolonged periods without work. After the busy season was over, the poor were on the streets again. They either returned to the countryside or looked for odd jobs, which till the mid-nineteenth century were difficult to find. At the best of times till the mid-nineteenth century, about 10 per cent of the urban population were extremely poor, which went up to anything between 35 and 75 per cent in different regions. The fear of unemployment made workers hostile to the introduction of new technology. When the Spinning Jenny was introduced in the woolen industry, women who survived on hand spinning began attacking the new machines. PowerPoint Presentation: Industrialization in the Colonies The Age of Indian Textiles Before the age of machine industries, silk and cotton goods from India dominated the international market in textiles. Coarser cottons were produced in many countries, but the finer varieties often came from India. Bales of fine textiles were carried on camel back via the north-west frontier, through mountain passes and across deserts. A vibrant sea trade operated through the main pre-colonial ports. Surat on the Gujarat coast connected India to the Gulf and Red Sea Ports; Masulipatam on the Coromandal coast and Hoogly in Bengal had trade links with Southeast Asian ports. A variety of Indian merchants and bankers were involved in this network of export trade – financing production, carrying goods and supplying exporters. By the 1750 this network, controlled by Indian merchants, was breaking down. Surat Port Textiles carried on camel back via the north-west frontier PowerPoint Presentation: Decline of the Old Ports and the Rise of the New Ones The European companies gradually gained power. This resulted in a decline of the old ports of Surat and Hoogly through which local merchants had operated. Exports from these ports fell dramatically, the credit that had financed the earlier trade began drying up and the local bankers slowly went bankrupt. While Surat and Hoogly decayed, Bombay and Calcutta grew. This shift from the old ports to the new ones was an indicator of the growth of colonial power. Trade through the new ports came to be controlled by European companies, and was carried in European ships. PowerPoint Presentation: What Happened to Weavers ? Ways adopted by Company officials to ensure regular supplies of Cotton and Silk textiles for the Indian weavers – Once the East India Company established political power, it could assert a monopoly right to trade. It proceeded to develop a system of management and control that would eliminate competition, control costs and ensure regular supplies of cotton and silk goods. This it through a series of steps – The company tried to eliminate the existing traders and brokers by appointing a paid servant called the gomastha to supervise weavers, collect supplies, and examine the quality of cloth. It prevented Company weavers from dealing with other buyers, by the system of advances. Those who took advance, had to hand over the cloth they produced to the gomastha. They could not take it to any other trader. Competitors of cotton trade in India Gomastha PowerPoint Presentation: Often there were reports of Clashes between weavers and gomasthas Many weavers had small plots of land, which now they had to lease out to others and devote all their time to weaving. Weaving required the labor of the entire family. Earlier supply merchants had a close relationship with the weavers, the gomasthas were outsiders, they acted arrogantly, marched into villages with sepoys and peons and punished weavers for delays in supply – often beating and flogging them. Weavers lost the space to bargain for prices and sell to different buyers, the price now they received was miserably low and the loans they had accepted tied them to the company. In many places, weavers deserted villages and migrated, weavers along with traders revolted, began refusing loans, closing down their workshops and taking to agricultural labours. PowerPoint Presentation: Manchester Comes to India By the beginning of the nineteenth century, textile exports from India declined. In 1811-12 piece goods accounted for 33 % of India’s exports; by 1850-51 it was no more then 3 %. As cotton industries developed in England, industrial groups began worrying about imports form other countries. They pressurized the government to impose import duties on cotton textiles . At the same time industrialists persuaded the East India Company to sell British manufacturers in Indian markets as well. By the 1850 cotton piece goods constituted over 31 per cent of the value of Indian imports; and by the 1870s this figure was over 50 per cent. PowerPoint Presentation: Problems faced by Cotton weavers in India Their export market collapsed, and the local market shrank, being glutted with Manchester imports. Imported goods were so cheap that weavers could not easily compete with them. By the 1860s, weavers could not get sufficient supply oaf raw cotton of good quality. As raw cotton exports form India increased, the price of raw cotton shot up. Weavers in India were starved of supplies and forced the buy raw cotton at exorbitant prices. By the end of the nineteenth century, factories in India began production, flooding the market with machine-goods. How could weaving industries possibly survive ? PowerPoint Presentation: Factories Come Up The first cotton mill in Bombay came up in 1854. By 1862 four mills were at work with 94000 spindles and 2150 looms. Around the same time jute mills came up in Bengal, the first being set up in 1855. In north India, the Elgin Mill was started in Kanpur in the 1860s, and a year later the first cotton mill of Ahmedabad was set up. By 1874, the first spinning and weaving mill of Madras began production. The Early Entrepreneurs From the late eighteenth century, British in India began exporting opium to China, many Indians became junior players in this trade, providing finance, procuring supplies , and shipping consignments. Having earned through trade, some of these businessmen had visions of developing industrial enterprises in India. In Bengal, Dwarkanath Tagore set up six joint-stock companies in the 1830s and 1840s. In Bombay, Parsis like Dinshaw Petit and Jamsetjee Nusserwanjee Tata built huge industrial empires, Seth Hukumchand set up the first Indian jute mill in Calcutta in 1917. So did the father as well as grandfather of the famous industrialist G.D.Birla. Dwarkanath Tagore Dinshaw Petit Jamsetjee Nusserwanjee Tata Seth Hukumchand PowerPoint Presentation: How the Early Entrepreneurs accumulated their Capital Some merchants from Madras traded with Burma, other had links with the Middle East and East Africa. Other commercial groups operated within India, carrying goods from one place to another, banking money, transferring funds between cities and financing traders. Hurdles in the path of Indian Entrepreneurs As colonial control over Indian trade tightened, the space within which Indian merchants could function became increasingly limited. They were barred from trading with Europe in manufacturing goods, and had to export mostly raw material and food grains. European Managing Agencies controlled a large sector of Indian industries. These agencies mobilized capital, set up joint-stock companies and managed them. The European merchant-industrialists had their own chambers of commerce which Indian businessmen were not allowed to join. First cotton mill in Bombay PowerPoint Presentation: Where Did the Workers Come From ? In most industrial regions workers came from the districts around. Peasants and artisans who found no work in the village went to the industrial centers in search of work. Most often mill workers moved between the village and the city, returning to their village homes during harvests and festivals. Workers traveled great distances in the hope of work in the mills. From the United Provinces, they went to work in the textile mills of Bombay and in the jute mills of Calcutta. Jobber Getting jobs was always difficult. The numbers seeking work were always more then the jobs available. Entry into the mills was also restricted. Industrialists usually employed a jobber to get new recruits. He got people fro his village, ensured them jobs, helped them settle in the city and provided them money in times of crisis. Jobber PowerPoint Presentation: The Peculiarities of Industrial Growth European Managing Agencies established tea and coffee plantations, acquiring land at cheap rates from the colonial government; and they invested in mining, indigo and jute. Indian businessmen avoided competing with Manchester goods, produced coarse cotton yearn rather than fabric, yarn produced in Indian spinning mills was used by handloom weavers in India or exported to China. When the swadeshi movement gathered momentum, Industrial groups organized themselves to protect their collective interests, pressurizing the government to increase tariff protection and grant other concessions. From 1906, Industrialists in India began shifting from yarn to cloth production. Cotton piece-goods production in India doubled between 1900 and 1912. PowerPoint Presentation: Impact of First World War on Indian Industries With British mills busy with war production to meet the needs of the army, Indian mills had a vast home market to supply. As the demand in England went up, Indian factories were called upon to supply war needs. New factories were set up and old ones ran multiple shifts. Many new workers were employed and everyone was made to work longer hours. Over the years industrial production boomed. After the war, Manchester could never recapture its old position in the Indian market. Cotton production collapsed and exports of cotton cloth from Britain fell dramatically. Within the colonies, local industrialists gradually consolidated their position, substituting foreign manufacturers and capturing the home market. PowerPoint Presentation: Small-scale Industries Predominate While factory industries grew steadily after the war, large industries formed only a small segment of the economy, small-scale production continued to predominate. Only a small proportion of the total industrial labor force worked in registered factories, the rest worked in small workshops and household units. Handicrafts production actually expanded in the twentieth century. While cheap machine-made thread wiped out the spinning industry in the nineteenth century, the weavers survived, despite problems. In the twentieth century, handloom cloth production expanded steadily; almost trebling between 1900 and 1940. By the second decade of the twentieth century we find weavers using looms with a fly shuttle. This increased productivity per worker, speeded up production and reduced labor demand. PowerPoint Presentation: “Certain groups of weavers were in a better position than others to survive the competition with mill industries.” The coarser cloth was bought by the poor and its demand fluctuated violently. The demand for the finer varieties bought by the well-to-do was more stable. The rich could buy these even when the poor starved. Famines did not effect the sale of Banarasi or Baluchari saris. Mills could not imitate specialized weaves. Saris with woven borders, or the famous lungis and handerkerchiefs of Madras, could not be easily displaced by mill production. Weavers and other crafts people who continued to expand production through the twentieth century, did not necessarily prosper. They lived hard lives and worked long hours. But they were not simply remnants of past times in the age of factories. Their life and labor was integral to the process of industrialization. Benarasi Brocade Baluchari Sarees PowerPoint Presentation: Measures adopted by the producers in India to expand the market for their goods in the 19 th century. Advertisements made products appear desirable and necessary. They try to shape the minds of people and create new goods. From the very beginning of the industrial age, advertisements have played a part in the expanding the markets for products, and in shaping a new consumer culture. When Manchester industrialists began selling cloth in India, they put labels on the cloth bundles. When buyers saw ‘MADE IN MANCHESTER’ written in bold on the label, they were expected to feel confident about buying the cloth. Labels also carried images and were very often beautifully illustrated. PowerPoint Presentation: Images of Indian gods and goddesses regularly appeared on these labels. It was as if the association with gods gave divine approval the goods being sold, was also intended to make the manufacture from a foreign land appear somewhat familiar to Indian people. By the late19th century, manufacturers were printing calendars to popularize their products. Unlike newspapers and magazines, calendars were used even by people who could not read, they were hung in tea shops and in poor people’s homes just as much as in offices and middle class apartments. PowerPoint Presentation: Like the images of gods, figures of important personages, of emperors and nawabs, adorned advertisement and calendars. The message : if you respect the royal figure, then respect this product; when the product was being used by kings, or produced under royal command, its quality could not be questioned. When Indian manufacturers advertised the nationalist message was clear and loud. If you care for the nation then buy products that Indians produce. Advertisements became a vehicle of the nationalist message of swadeshi.