The decline of India's industries

Before the 18th century India was famous for manufacturing, especially textiles: cotton, silk, wool, jute, hemp and coir.

Indian cotton cloth was in demand all over the world, with rich detailed designs, bright colours, and textures from ultra-thin muslins to richly raised (embossed) fabrics.

Then British policy changed the rules of trade, and it did so in two directions at once.

Heavy duties (taxes) were put on Indian textiles entering Britain. At the same time, India was forced to accept British factory goods with very low duties.

So Indian cloth became expensive in Britain, while British cloth became cheap in India. The same industry was squeezed from both ends.

And Britain now controlled most of the sea trade and the exchange rates, so Indian traders could not simply export elsewhere as they once had.

The result was ruin. India's textile exports fell sharply in the 19th century while British imports into India grew even faster. Communities of skilled artisans who had practised their craft for generations were pushed into poverty, and back onto land that was taxed more and more.

William Bentinck, then Governor-General, said in 1834: "The bones of the cotton weavers are bleaching the plains of India." The same happened to iron, steel, paper and other industries, and India's share of world GDP fell to hardly 5 per cent by Independence. In less than two centuries, one of the richest lands in the world had become one of the poorest.