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Major Modern Industries In British India: Industrial Development In India Before Independence!

Last Updated on May 13, 2025
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Major Modern Industries in British India began to emerge rapidly during the late nineteenth century under the British. The British initiated policies to industrialize various sectors for exploiting India's resources and expanding their market for British goods. They initiated the development of Major Modern Industries in British India like railways, telecom, iron and steel, heavy machinery, chemicals, sugar, cement etc. to strengthen their economic and political control. 

Aspirants attempting UPSC IAS exam - specifically the UPSC History Optional paper - along with UGC NET History Exam will benefit from studying modern industry in India during British rule in depth. Since questions on this appear regularly, candidates must be well-versed with this topic to perform their best during exams.

Indian Industries During British Rule - The Cotton Textile Industry

The cotton textile industry grew quickly in British India. It became one of the major modern industries during British rule. The first cotton mills started in India in the 1800s.

  • Before that time, India had many traditional cotton and textile businesses. But they were small. They used old ways of making cloth.
  • The British textile industry changed a lot with new machines. The British wanted to sell more cloth in India's large market. They also wanted to make cloth cheaply in India. This helped the Major Modern Industry in British India grow - the cotton textile industry.
  • At first, British companies built cotton mills to export cloth. Later, they made cloth for India's big market too. India's cotton textile industry is now one of the biggest in the world.
  • The first cotton mills started in Mumbai and Ahmedabad. The very first cotton mill in India opened in Mumbai in 1854. Later, mills opened in other places like Madras, Ahmedabad and North India too.
  • The cotton textile industry gave many jobs to people in India. This was especially true for women. Many workers came to cities like Mumbai and Ahmedabad to work in the mills. The cotton textile industry made cities grow around the mills.
  • But the Major Modern Industries in British India also affected India's traditional handloom industry. It became hard for handloom workers to compete with machine-made cloth. Many handloom workers lost their jobs and money.
  • The cotton textile industry also had many worker problems. Workers had to work for long hours in bad conditions for little money. This led to many strikes and fights from the late 1800s. Workers wanted better pay and conditions.

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Modern Industry In India During British Rule: Jute

During British rule, jute emerged as a major industry in India. The British found that jute was a useful raw material to make affordable gunny bags, Hessian cloth and rope. They promoted its cultivation and production in eastern India. By the late 19th century, the jute industry became one of the most important industries in British India.

  • Bengal is the main state where jute grows best. British merchants established jute mills in several districts of Bengal. 
  • The epicentre of the jute industry was the city of Kolkata. Several indigenous jute traders set up jute mills and factories during this time. By the early 20th century, the jute industry employed thousands of workers and generated large revenues.
  • Jute cultivation starts in Bengal as early as March. Farmers sow the jute seeds in fertile land beside rivers. The plants grow to around 4 to 5 feet tall. 
  • Farmers harvest jute plants in June and July when the stems turn yellow. The jute fibres are extracted from the stems. The fibres are baled and sold to jute mills.
  • Big jute mills in Kolkata purchased the raw jute from farmers. The mills washed, dried and processed the jute fibres to remove impurities. The processed fibres were combed using huge machinery to arrange them in the same direction. 
  • The fibres were then spun into yarn and woven into fabrics and twine using looms and spinning machines.
  • Jute mills in Bengal mostly made gunny bags, Hessian cloth and rope. Gunny bags are used for packing and transporting grains, rice, flour, sugar and chemicals. Hessian is a coarse fabric made from jute fibres. 
  • It is used for making sacks, bags and mattress covers. Jute rope found widespread use in rigging, shipping, construction and mining. Some jute factories also branched into making jute carpets.
  • The jute industry grew rapidly during the First World War as demand for packaging materials and ropes increased. The British government placed large orders for jute products with mills in Bengal. 
  • However, during the Great Depression, the industry faced a downturn due to low demand. It recovered again during World War Two due to heavy demand from the British and American armies.
  • Working and living conditions of jute mill workers were difficult during British rule. The workers mostly came from very poor families in rural Bengal. Mill owners paid low wages as there was an excess supply of labour. 
  • The work involved operating heavy machinery and carrying heavy loads of jute. The work environment was very dusty and hot. Child labour was common in jute mills.

The Tea Industry In British India

Tea became one of the major industries in British India during the 19th century. It provided substantial economic benefits for the British Empire and employment for many Indians.

  • The British discovered tea in India in the early 19th century. Before that, China was the world's largest tea producer. 
  • The British East India Company started importing tea from China, which led to a vast outflow of silver from Britain.
  • The East India Company wanted to grow tea in India to reduce its dependence on Chinese tea. In 1823, a British officer discovered wild tea plants growing in Assam. That began the tea industry in India.
  • The British realized that Assam had ideal conditions for growing tea on a large scale. They started tea plantations in Assam in the 1830s.
  • Thousands of workers, mainly from eastern India, were brought to Assam to work in the tea gardens. The workers faced poor living and working conditions.
  • Tea gardens multiplied in upper Assam in the mid-19th century. By the 1860s, large commercial plantations produced high-quality tea. The industry expanded to other areas like Darjeeling and Kangra.
  • The opening of railways helped move tea leaves quickly from Assam to ports like Calcutta. This made exporting Indian tea to Britain easier. Tea gradually replaced opium as Assam's main export crop.
  • By the early 20th century, India emerged as the largest tea producer in the world, supplying half of Britain's tea demand.
  • The tea industry was very beneficial for Britain. It helped fulfil the significant demand for cheap tea in Britain. It reduced Britain's trade deficit with China. British companies earned enormous profits by exporting Indian tea.
  • The industry provided employment for millions of Indians, but primarily low-paid work. Workers faced poor living conditions in crowded labour lines. Wages were low, and there were few benefits.
  • Workers often protested against low wages, poor housing and working hours as long as 15 hours a day. However, workers did not get many benefits from the profitable industry.
  • Tea contributed significantly to India's export earnings during British rule. But the profits mainly went to British companies. Local traders and businessmen did not benefit much.
  • The industry led to social and economic changes in Assam and other tea-growing regions. But locals got limited benefits as British companies controlled the industry.
  • After India's Independence in 1947, many Indian companies took over the tea industry. The government nationalized some major tea estates in the 1960s.

The Railway Industry In British India

The railway industry was one of the most important modern industries built in India during British rule. The British started constructing railways in India in the mid-1800s, and within the next century, India had one of the largest railway networks in the world.

Initial Phase

The British government in India started building railways to move troops and resources within India during wars. The first train service in India started in 1853 between Bombay (now Mumbai) and Thane, covering a distance of 34 kilometres. This was the first operational railway in India. Construction of new lines started slowly in key cities and towns.

Expansion Phase

In the 1870s, the railway industry expanded rapidly, with multiple new lines built every year. The government allowed private railway companies to build additional tracks. By 1900, India had over 29,000 kilometres of railway tracks. Many new railway stations were constructed in different cities. Train services between key cities became faster and more efficient.

More Lines and Tracks

The railway network continued expanding in the early 20th century. New tracks and lines were built in different parts of India, connecting smaller towns. By the 1930s, India had over 54,000 kilometres of railway network covering most major cities and towns. This made travelling across long distances in India faster and easier for people.

Trains for Common People

With more railway lines and stations, train travel became affordable for common people also. Earlier, only higher-class people could afford train journeys. The availability of 3rd class compartments in trains made train travel economical for lower-income passengers also. Many poor people used trains to travel to towns or to see relatives.

Major Projects

The British government undertook some large railway expansion projects in India. The 'Montague-Chelmsford Reforms' of 1919 made the railway industry a central subject of the Government of India. Huge funds were sanctioned for new projects. The 'Bengal Nagpur Railway (BNR) Project' and the 'Railway Electrification Project' were started.

Revenue and Job Creation

The railway network became a huge revenue source for the British administration in India. The network generated high revenues from ticket sales and freight transport. It created massive employment opportunities for Indian people as railway employees. By 1905, the railways employed over 200,000 people in India, out of which 95% were Indians.

Improved Transport Business

The railway network helped transform the transportation business in India. Both passenger and goods transport within India increased manifold. More businesses started using trains to transport goods across long distances. Agricultural products, coal, and raw materials were transported in large quantities using trains.

Conclusion

Major Modern Industries in British India formed during the British period laid the important base for India's post-independence industrial growth and development. Though initiated primarily for economic exploitation of India, these sectors like railways, textiles, iron and steel, sugar, chemicals etc played a crucial role in India's industrialization after 1947. The Indian government used these sectors as a base to expand modern industries, manufacturing and public infrastructure. 

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Major Modern Industries In British India FAQs

The British developed Major Modern Industries in British India mainly for economic exploitation of India's resources and to expand their market for British goods.

Major Modern Industries in British India formed the base for India's post-independence industrial growth. The Indian government expanded these sectors after 1947 to develop modern industries and infrastructure.

Many of the old Major Modern Industries in British India like railways, textiles, iron and steel sector continue to operate and grow in modern India, contributing to the country's economic development.

Major Modern Industries in British India continue to provide benefits like jobs, revenue, technology, infrastructure and public services to modern India.

Major Modern Industries in British India started by the British included railways, textiles, iron and steel, sugar, telecommunication, chemicals and cement.

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