The Age of Industrialization

Proto-industrialisation was the early phase of industrialisation before the rise of factories, where a large-scale industrial production took place for international markets, but not based on factories. It was different because production happened in rural households (cottage industries) with artisans working for merchants, rather than in centralized factories with wage labourers and machines.

Merchants moved to the countryside because trade guilds in towns were powerful, monopolised production, controlled prices, and restricted the entry of new people. In the countryside, peasants and artisans were willing to work for merchants for supplementary income, offering a wider field for production and allowing merchants to control the entire production process from raw materials to finished goods.

Two key inventions were:

1. The Spinning Jenny (1764, James Hargreaves): It speeded up spinning by allowing a single worker to operate several spindles simultaneously.
2. The Cotton Mill (Richard Arkwright): It brought all textile production processes under one roof and allowed careful supervision over labour, marking the beginning of the factory system.

Gomasthas were paid servants appointed by the East India Company to supervise weavers, collect supplies, and examine the quality of cloth. Their role was to ensure that weavers supplied cloth to the Company at fixed prices. They often acted oppressively, forcing weavers to take advances, preventing them from dealing with other buyers, and sometimes even physically punishing them, leading to clashes and the ruin of many weavers.

The earliest factories in England, particularly cotton mills, were often near rivers for two main reasons:

1. Water Power: Before the widespread use of steam engines, water power was the primary source of energy to run the machines in factories.
2. Transportation: Rivers also facilitated the transportation of raw materials to the factories and finished goods to markets.

The East India Company adopted several measures to ensure a regular supply of cotton and silk goods from Indian weavers:

1. Elimination of Competition: They eliminated existing traders and brokers connected with cloth trade and established a direct control over the weavers.
2. Appointing Gomasthas: The Company appointed paid servants called 'gomasthas' to supervise weavers, collect supplies, and examine the quality of cloth. These gomasthas often acted oppressively.
3. System of Advances (Loans): Weavers were given advances (loans) to purchase raw materials. Those who took loans were bound to deliver their produce to the Company. They could not sell their cloth to any other buyer.
4. Control over Production: Once an order was placed, the weavers were forbidden from weaving any other cloth. This ensured a monopolistic control over their output.
5. Bound Labour: The system essentially tied the weavers to the Company, forcing them into a form of bonded labour, as they had to repay the advances.

Victorian industrialists in Britain, despite technological advancements, often preferred hand-labour for several reasons:

1. Cost of Machines: New machines were expensive, and industrialists were cautious about investing heavily in them, especially if returns were uncertain. Repairs were also costly.
2. Abundance of Labour: There was no shortage of human labour. Poor peasants and migrants from the countryside flocked to cities in search of work, making labour cheap and abundant. This reduced the incentive to invest in costly machines.
3. Seasonal Demand: In many industries (e.g., gas works, breweries), demand for goods was seasonal. Industrialists preferred hiring workers for specific seasons and firing them when demand fell, which was more flexible than operating expensive machinery year-round.
4. Variety and Fineness: Machines produced standardised goods for a mass market. However, there was a demand for goods with intricate designs, specific shapes, and varied patterns, which only skilled hand-labour could produce. For example, hand-made goods often symbolised refinement and class.
5. Breakage and Repair: Machines were prone to breaking down and their repair was costly and time-consuming. Hand-labour offered more reliability for certain tasks.

Growth of Early Factories in India:

1. Textile Mills: The first cotton mill in Bombay (Mumbai) was set up in 1854, followed by other mills in Bombay and Ahmedabad. The first jute mill was set up in Calcutta in 1855, and the first spinning and weaving mill of Madras began production in 1874.
2. Early Entrepreneurs: Indian entrepreneurs like Dwarkanath Tagore, Jamsetjee Nusserwanjee Tata, Seth Hukumchand, and G.D. Birla played a crucial role in establishing these early industries.
3. Limited Growth before WWI: Before the First World War, industrial growth in India was slow. British manufactured goods flooded the Indian market, and the colonial government often discouraged the growth of Indian industries.

1. New Opportunities: British mills were now busy with war production (making uniforms, tents, boots, etc.) for the army. This reduced the import of Manchester goods into India, opening up the Indian market for local industries.
2. Increased Demand: Indian factories were called upon to supply war needs, leading to a dramatic increase in demand for bags, jute sacks, cloth for army uniforms, tents, leather boots, and other items.
3. New Factories and Workers: New factories were set up, and old ones ran multiple shifts. Many new workers were employed, leading to significant expansion of factory production.
4. Rise of Indian Industrialists: Indian industrialists, who had previously faced stiff competition from British goods, now had an opportunity to consolidate their position and expand.
5. Shift in Economic Power: The war weakened Britain's economic position and led to greater self-reliance and growth of indigenous industries in India, contributing to a shift in economic power.