Discuss the impact of the decline of the Indian textile industry on the Indian economy.

Question

Accepted Answer

The destruction of the Indian handicraft and textile industry had far-reaching effects on the Indian economy:

1. It led to unemployment on a large scale. In 1834, Lord William Bentinck reported, 'The misery hardly finds a parallel in the history of commerce. The bones of cotton weavers are bleaching the plain of India.'

2. Another consequence of the decline of handicrafts was the 'back to the land' movement. The British destroyed the institution of Indian handicrafts but did not care to provide an alternative source of employment.

3. The percentage of the population dependent on agriculture increased. It was 55 percent in the middle of the nineteenth century and increased to 72 percent in 1931. This led to an increase in the land rent charged from the tenants and over-crowding in agriculture.