Impact of British Rule on Indian Agriculture and Industry: Transformation and Legacy – (Part 02)

The impact of British rule on India was profound and multifaceted, particularly in the realms of landownership, agriculture, industry, and the economy. This period saw the emergence of intermediaries and absentee landlords, leading to the ruin of traditional zamindars. The commercialization of agriculture and the destruction of indigenous industries further exacerbated the economic challenges faced by the Indian population.

Impact of British Rule: Transformation of Indian Agriculture and Industry

Emergence of Intermediaries, Absentee Landlordism, Ruin of Old Zamindars

The situation described highlights significant changes in landownership and the agricultural landscape in Bengal during the colonial period. By 1815, several developments had taken place:

• Change in Land Ownership: The land in Bengal had shifted from traditional agrarian communities to new owners. These new owners included merchants, moneylenders, and other wealthy urban individuals.

• • Loss of Control by Traditional Agrarian Communities: As a result, a significant portion of land was no longer under the control of the traditional agrarian communities. 
  • Rise of New Zamindars: These new landowners became the new zamindars, or landlords, with increased power over agricultural land. 
  • Shift in Landlord-Peasant Relationships: The transition of land to these new hands often led to a shift in the relationships between landlords and peasants, as the new zamindars may not have had the same traditional or benevolent ties with the tenants.

• Land Grabbing and Sub-Infeudation: The new zamindars, with limited avenues for new investments, resorted to land grabbing and sub-infeudation. 

• • Increase in Layers of Intermediaries: This process resulted in increased layers of intermediaries, which further complicated landownership and revenue collection. 
  • Burden on Peasants: Each intermediary expected a share of the agricultural produce, leading to a heavier burden on the peasants. 
  • Rise of Absentee Landlordism: As the number of intermediaries increased, absentee landlordism became more common. Many zamindars no longer lived on or near the land they owned. 
  • Disconnection Between Landlords and Peasants: This absenteeism further disconnected landlords from the realities of agricultural life and the struggles of the tenants.

Enroll now for UPSC Online Course

• Land Prices and Peasant Liabilities: The increased demand for land and the rising prices of land led to higher financial liabilities for the peasants. Peasants had to pay higher rents or share a more significant portion of their agricultural produce with the zamindars.

• • Strain on Farming Communities: This economic pressure further strained the livelihoods of the farming communities. 
  • Lack of Investment in Agriculture: The new zamindars, focused on extracting revenue from the land, had little incentive to invest in the improvement of agriculture. 
  • Alignment with British Interests: Their interests were primarily aligned with perpetuating British rule and opposing any movements for national independence.

Stagnation and Deterioration of Agriculture

• Factors Contributing to Agricultural Stagnation: The stagnation and deterioration of agriculture during the colonial period in India can be attributed to several factors. 
• Lack of Incentive for Peasants: Peasants and cultivators had little incentive to invest in agriculture. 
• Economic Burden on Farmers: The burden of high rents and other obligations to landlords and the government left them with limited resources for improving farming techniques or infrastructure. 
• Absentee Landlords’ Disconnection: The absentee landlords, often disconnected from the villages where the land was located, lacked the motivation to invest in agricultural improvements. 
• Focus on Revenue Collection: Their primary concern was collecting revenue from the land.

• Limited Government Investment in Agriculture: The colonial government allocated meager funds for agricultural development, technical education, or mass education in rural areas. 
• Hindrance to Modernization: This lack of investment in the agricultural sector hindered the introduction of modern technology and farming practices. 
• Impact of Sub-Infeudation: Sub-infeudation, where land was further divided and leased to various intermediaries, led to the fragmentation of agricultural land.
• Challenges of Smaller Landholdings: Smaller landholdings made it difficult to introduce modern farming techniques and achieve economies of scale, resulting in lower productivity.

• Agricultural Stagnation and Economic Hardship Under British Rule: 
  • Low Agricultural Productivity: The combined impact of these factors resulted in consistently low agricultural productivity. 
  • Stagnation and Deterioration of Agriculture: With limited investment, outdated farming methods, and increasing land fragmentation, agriculture in many regions experienced stagnation or even deterioration. 
  • Economic Challenges for Rural Communities: These conditions contributed to the economic challenges faced by rural communities and the persistence of poverty and underdevelopment in the agricultural sector during the colonial period. 
  • Role of British Colonial Policies: The British colonial policies and their focus on revenue collection rather than agricultural development played a significant role in this agricultural stagnation.

Famines in Colonial India: Causes, Impact, and Colonial Response

Famines in colonial India were a tragic and recurrent phenomenon, resulting in immense suffering and loss of life. The text suggests that these famines were primarily driven by the widespread poverty and economic policies imposed by colonial forces. Here are some key points to understand the relationship between famines, poverty, and colonial rule in India:

• Causes of Famines in Colonial India: Famines in colonial India were often triggered by foodgrain scarcity due to various factors, including poor agricultural practices, crop failures, and adverse weather conditions. 
  • However, the root causes of these famines were complex and interconnected with the economic and social conditions prevailing during colonial rule.
• Impact of Colonial Policies on Poverty: Widespread poverty, exacerbated by colonial policies and economic exploitation, made a significant contribution to famine vulnerability. 
  • High land rents, heavy taxation, and indebtedness among peasants left them with limited resources to cope with crop failures and food shortages.
• Land Revenue Demands and Peasant Distress: The colonial administration imposed heavy land revenue demands on the peasantry, which often required them to pay a fixed amount regardless of crop yields. 
  • This practice could lead to economic distress and indebtedness among peasants, especially during years of poor harvests.
• Vulnerability of Marginalized Populations: Famine disproportionately affected the most vulnerable segments of the population, including landless laborers, small farmers, and marginalized communities. 
  • They were the hardest hit by food shortages and rising prices.
• Toll of Famines on Human Lives: The loss of an estimated 2.8 crore (28 million) lives in famines between 1850 and 1900 highlights the severity of the situation. 
  • Famines took a massive toll on human lives, and they were often followed by diseases and epidemics, compounding the suffering.
• Inadequate Colonial Response to Famines: The colonial authorities’ response to famines was often criticized for being inadequate and delayed. 
  • Relief efforts were sometimes insufficient to address the scale of the crisis, and colonial policies did little to prevent or mitigate famines.

Famines were a tragic consequence of the economic and social conditions created by British colonial rule in India. The policies and practices related to land revenue, taxation, and economic exploitation significantly contributed to the vulnerability of the population to food shortages and famine. The legacy of these famines continues to be a part of India’s historical and social memory.

Commercialisation of Indian Agriculture

• Rise of Commercial Agriculture in the Late 19th Century: During the latter part of the 19th century, another noteworthy development was the rise of commercial agriculture. 

• • Shift from Subsistence to Commercial Farming: Previously, farming had been a way of life rather than a business endeavor. However, agriculture began to be influenced by commercial interests. 
  • Introduction of Cash Crops: Certain specialized crops were no longer grown solely for local consumption but for sale in national and even international markets. 
  • Commercially Valuable Crops: Crops with commercial value, such as cotton, jute, groundnut, oilseeds, sugarcane, and tobacco, became more financially rewarding than food crops. 
  • Expansion of Market-Oriented Cultivation: Additionally, the cultivation of items like condiments, spices, fruits, and vegetables catered to a broader market. 
  • Growth of the Plantation Sector: This trend towards commercialization and specialization reached its pinnacle in the plantation sector, which included crops like tea, coffee, rubber, and indigo, primarily owned by Europeans and intended for sale in a wider market. 
  • Economic Impact of Commercialization: Economically, one of the results of the British rule in India in the 19th century was the commercialization of Indian agriculture.
• Factors That Led to Commercialisation: Various factors encouraged this new trend of commercialization and specialization. 
• These factors included the expansion of a monetary economy, the replacement of traditional customs with competition and contractual arrangements, the establishment of a unified national market, the growth of domestic trade, improvements in transportation through the construction of railways and roads, and the boost to international trade facilitated by the involvement of British finance capital.
• Impact of Commercialization on Indian Peasants: For the Indian peasant, however, commercialization often felt like a forced process. 
  • Limited Surplus for Investment: They had little surplus to invest in commercial crops due to their subsistence-level living conditions. 
  • Vulnerability to International Market Fluctuations: Moreover, commercialization linked Indian agriculture with international market trends and their fluctuations. 
    • Example: the high prices of cotton in the 1860s mostly benefited intermediaries, and when prices slumped in 1866, it hit the cultivators the hardest. 
  • Consequences: This downturn led to heavy indebtedness, famine, and agrarian riots in the Deccan region during the 1870s. 
  • Limited Benefits for the Average Cultivator: Consequently, the average cultivator did not significantly benefit from this new wave of commercialization.

Destruction of Industry and Late Development of Modern Industry

• The Destruction of Indian Textile Industry: The British colonial rule significantly contributed to the deindustrialization of India, with the textile industry serving as a prime example. 
• Impact on Indian Textile Industry and Peasants: Instead of paying for Indian textiles in pounds, the British chose to pay from the revenue generated in Bengal at exceptionally low rates. 
• Hindrance to the Growth of the Textile Industry: This not only hindered the growth of the textile industry but also deepened the impoverishment of the Indian peasants.
• The Decline of the Ship-building Industry: Historically, India had thriving ship-building industries, notably in Surat, Malabar, Bengal, and Masulipatnam. 
• However, British ships contracted by the East India Company were granted a monopoly over trade routes, while Indian merchant ships along the coast faced heavy duties. 
• British Laws and Their Impact on Indian Ships: In 1813, a British law prohibited ships below 350 tonnes from traveling between India and Britain, effectively shutting down a significant portion of Bengal-built ships on the Indo-British trade routes. 
• Restrictions and the Collapse of Indian Shipping: In 1814, another law was enacted, refusing to consider Indian-built ships as ‘British-registered vessels’ eligible for trade with America and the European continent. So the decline of the Indian shipping industry was ensured.
• Obstacles to the Steel Industry: The British administration imposed restrictions on the growth of the Indian steel industry, with firms like the Tatas, which managed to produce steel, primarily serving British interests. 
• Challenges Faced by Indian Steel Firms: These firms struggled to produce the lower standard of steel at the same time, which excluded them from the larger market that demanded lower-quality steel. 
• Restrictions on Indian Steel Imports: With Britain placing restrictions on Indian steel imports, the growth of this industry was significantly hindered.

Impact on Indigenous Traders and Capitalists

• Role of Indian Traders and Moneylenders: Indian traders, moneylenders, and bankers had played crucial roles as junior partners of English merchant capitalists in India. 
  • They facilitated the state’s collection of revenue, the movement of British imports, and Indian agricultural products for exports. 
• Export Commodities: The staple commodities of export by the English East India Company from Bengal in the middle of the 18th century were Cotton, silk, saltpeter and opium. 
• Impact on Industrial Development in India: However, the colonial situation did not foster the development of a robust and independent industrial bourgeoisie. 
  • As a result, India’s industrial development differed from that of other independent countries, like Germany and Japan.

Emergence of Modern Industries

• Rise of Modern Industries: In the second half of the nineteenth century, modern machine-based industries began emerging in India. 
• The first cotton textile mill was established in Bombay in 1853, followed by the first jute mill in Rishra, Bengal, in 1855. 
• Nevertheless, most modern industries were foreign-owned and controlled by British managing agencies.
• Influx of Foreign Capital: A surge of foreign capital flowed into India due to the promising prospects of high profits, abundant cheap labor, easily accessible raw materials, a ready market in India and neighboring regions, diminishing investment opportunities at home, administrative support, and overseas markets for Indian exports such as tea, jute, and manganese.
• Growth of Indian-owned Industries: Indian-owned industries eventually made their mark in cotton textiles and jute in the nineteenth century and in sectors like sugar and cement in the twentieth century. 
• However, they faced several challenges, including credit problems, a lack of tariff protection from the government, unequal competition from foreign companies, and strong opposition from British capitalist interests supported by robust financial and technical infrastructure back in Britain.

Structural and Institutional Changes

• Lopsided Industrial Development and Regional Disparities: The industrial development during this period exhibited a lopsided pattern, with core and heavy industries and power generation being neglected. 
  • Specific regions were favored over others, contributing to regional disparities that impeded the process of nation-building. 
• Challenges in Technical Education and Workforce Development: The absence of comprehensive technical education hindered the industry’s access to sufficient technical manpower. 
• Emergence of Industrial Capitalist and Working Classes: Furthermore, the rise of an industrial capitalist class and the working class played a crucial role in shaping this phase socially.

Enroll now for UPSC Online Course

Conclusion

The British colonial rule in India had profound negative impacts on the country’s agricultural and industrial sectors, leading to widespread poverty, famines, and economic stagnation. 

• The commercialization of agriculture and the destruction of indigenous industries were deliberate policies that favored British economic interests, leaving a lasting legacy of underdevelopment and hardship for the Indian population.

Sign up for the PWOnlyIAS Online Course by Physics Wallah and start your journey to IAS success today!

DOWNLOAD PDF