Impact on Economy: Industries and Labour (Later Colonial Period)

Cotton Mills Come Up

During the colonial period, particularly in the 19th and early 20th centuries, India witnessed the emergence of modern industries, albeit in a stunted manner compared to its potential. The cotton textile industry was one of the earliest and most significant examples of this modern industrial development, largely driven by Indian entrepreneurs.

Before the advent of machine-made textiles from Britain, India was renowned for its fine quality cotton and silk textiles. The traditional Indian weaving industry was a major source of income and employment. However, British industrialisation and colonial policies led to the decline of these indigenous crafts.

From the mid-19th century, Indian entrepreneurs began setting up modern cotton textile mills. The first cotton mill in India was established in **Bombay** (now Mumbai) in 1854 by **Cowasjee Nanabhoy Davar**. This was a significant step as it marked the beginning of factory-based cotton production in the country.

Growth and Location

The cotton textile industry grew rapidly in Bombay and Ahmedabad. Several factors contributed to this:

• Availability of Raw Cotton: The Bombay Deccan region was a major producer of high-quality cotton. The mills were located close to the source of raw material.
• Proximity to Ports: Bombay was a major port city, facilitating the import of machinery and the export of finished goods.
• Availability of Capital: Wealthy Indian merchants and traders, who had made money through trade with China and Britain, invested in these mills.
• Cheap Labour: A large supply of cheap labour was available from the surrounding rural areas.

By the early 20th century, Bombay had become a major industrial centre with numerous cotton mills. Ahmedabad also emerged as another important hub for cotton textiles, earning the nickname "Manchester of India." Other centres included Kanpur, Madras (now Chennai), and Calcutta (now Kolkata), although Bombay and Ahmedabad remained dominant.

Challenges and Competition

The Indian cotton mills faced significant challenges. They had to compete with cheap, machine-made textiles imported from Britain. The British government often pursued policies that favoured British imports, such as imposing low import duties on British goods while sometimes levying taxes on Indian mill production (though this varied over time).

Despite these challenges, the Indian cotton textile industry grew, primarily catering to the domestic market. It provided employment to thousands of workers and became a symbol of early Indian industrialisation driven by indigenous capital.

Labour Conditions

The workers in these early cotton mills faced harsh conditions. They worked long hours, often 12-14 hours a day, in poor and unsafe environments. Wages were low, and there were often no proper housing, sanitation, or healthcare facilities. The workforce initially consisted mainly of migrants from rural areas who maintained links with their villages.

Over time, labour movements emerged to demand better working conditions and wages. The growth of the textile industry also led to the formation of working-class communities in the industrial cities.

The establishment and growth of the cotton mill industry marked a shift towards modern factory production in India, changing the economic landscape and creating a new class of industrial workers and capitalists.

Iron And Steel Factories Come Up In India

The development of a modern iron and steel industry is crucial for industrialisation as steel is a basic raw material for various other industries (machinery, infrastructure, etc.). While India had a long tradition of iron smelting, the modern large-scale iron and steel industry emerged much later during the colonial period, facing significant hurdles.

Traditional iron smelters in India, like the Agarias, used local deposits of iron ore and charcoal from forests to produce high-quality iron. However, the British colonial government's forest laws restricted tribal access to forests, cutting off the supply of charcoal and raw materials for these traditional smelters. This, combined with the import of cheaper iron and steel from Britain, led to the decline of the indigenous smelting industry.

The path to establishing a modern iron and steel plant in India was pioneered by **Jamsetji Nusserwanji Tata**. Tata had a vision for a modern, industrial India and recognised the need for a domestic steel industry. His efforts to find suitable locations and resources spanned several decades.

The Founding of TISCO

Finding iron ore and coal deposits in close proximity was essential for setting up a steel plant. Jamsetji Tata's son, **Dorabji Tata**, and American geologist **Charles Weld** embarked on extensive surveys in the early 20th century. They finally discovered rich iron ore deposits in the Rajhara Hills in present-day Chhattisgarh, but a nearby source of coal was still needed.

Their search eventually led them to the dense forests of the Chota Nagpur plateau, where they found a group of tribal people, the Agarias, who knew the location of high-quality iron ore deposits in the hills of Gorumahisani (in present-day Odisha).

With the discovery of both iron ore and coal (Jharia coal fields), and access to water from the Subarnarekha river, a site was chosen for the steel plant. The **Tata Iron and Steel Company (TISCO)** was registered in 1907. The plant was built at Sakchi, a village near the confluence of the rivers Subarnarekha and Kharkai, in present-day Jharkhand. This location was later renamed **Jamshedpur** in honour of Jamsetji Tata.

Production Begins

Production of pig iron began at TISCO in 1912, and steel production started in 1913. This was a landmark achievement – the first modern large-scale iron and steel plant in India, set up entirely by Indian capital.

Impact of World War I

The First World War (1914-1918) proved to be a turning point for TISCO. As British steel supplies to India from Britain decreased due to the war, the demand for Indian steel increased significantly. The British government, which had previously been reluctant to support Indian industries, now relied on TISCO for railway tracks and other steel requirements for the war effort. This provided a crucial impetus to TISCO's growth and production capacity.

Significance

The establishment of TISCO was highly significant:

• It demonstrated the capability of Indian entrepreneurs to set up and manage complex modern industries.
• It laid the foundation for India's heavy industry sector.
• It became a symbol of India's potential for industrial self-reliance, although this was limited under colonial rule.

Despite TISCO's success, the overall industrial development in India during the colonial period remained limited and uneven, largely due to colonial policies that prioritised British economic interests. However, TISCO stood out as a beacon of modern Indian enterprise.