Proto-Industrialization and the Rise of Factories in Britain and India

Age of Industrialisation Proto Industrialisation

The period of industrialization before the first factories came up in Europe is termed as proto-industrialization. This period was marked by merchants from towns getting products made in villages.

Reasons for focus of merchants on villages:

• Powerful trade and craft guilds in urban areas
• Controlled competition and prices
• Prevented entry of new players in the market

Features of proto-industrialization in Britain:

• Merchants supplied money to the peasants in the countryside
• Peasants motivated to produce products for an international market
• Land becoming scarce in villages
• Peasants looking for additional sources of income

The Coming Up Of Factory

The earliest factories in England came up in the 1730s. By late 18th century, there were numerous factories dotting the landscape of England. In 1760 Britain was importing 2.5 million pounds of raw cotton. This quantity increased to 22 million pounds by 1787.

Benefits of factories:

• Increased efficiency of workers
• Managing and supervising labor was much easier

The Age of Indian Textiles

The East India Company had consolidated its business by the mid-eighteenth century. The earlier centers of trade; like Surat and Hooghly; declined during this period. The new centers; like Calcutta and Bombay emerged.

Factories Come Up

The first cotton mill in Bombay came up in 1854 and it went into production two years later. By 1862 four mills were in operation. Jute mills also came up in Bengal around the same time. The Elgin Mill was started in Kanpur in the 1860s. In Ahmadabad, the first cotton mill was set up in the same period. By 1874, the first cotton mill of Madras began production.

Manchester comes to India

By the beginning of the nineteenth century; a long decline of textiles exports from India initiated. In 1811 – 12 piece-goods accounted for 33% of India’s exports but it declined to less than 3% by 1850-51.

The Early Entrepreneurs

The history of many business groups goes back to trade with China. From the late eighteenth century, the British in India began to export opium to China and import tea from there. Many Indians took active participation in this trade by providing finance, procuring supplies and shipping consignments.

Where Did the Workers Come from?

In most of the industrial regions workers came from the surrounding districts. Most of the workers were migrants from neighboring villages. They maintained contact with their rural homeland; by returning to their villages during harvests and festivals.

The Peculiarities of Industrial Growth

European Managing Agencies were interested in certain kinds of products. They focused on tea and coffee plantations, mining, indigo and jute. These products were mainly required for export and were not meant for sale in India.

Market for Goods

The manufacturers practiced various ways to lure new customers. Advertisement is one of the various ways to attract new customers.