Part of: Miscellaneous Indian Gk set 70

The main reason for decline of handicraft industry in India during British rule was

Category: Miscellaneous Indian Gk

Hint: Consider the economic policies that favored British goods over Indian products.

Correct Answer: A) Discriminatory tariff policy.

Exam Relevance: UPSC, SSC, Banking Exams

Difficulty: Moderate

Explanations:

The decline of the Indian handicraft industry during the British colonial period was a multifaceted process, but one of the most significant factors was the discriminatory tariff policy imposed by the British. This policy was part of a broader economic strategy known as the "drain of wealth," which aimed to make India economically dependent on Britain.

Discriminatory tariffs were a key component of this strategy. The British government imposed high tariffs on Indian goods imported into Britain, making them more expensive and less competitive in the British market. At the same time, they lowered tariffs on British goods imported into India, making these goods cheaper and more attractive to Indian consumers. This created a situation where Indian handicrafts could not compete with the cheaper and more readily available British goods.

The impact of these policies was profound. Indian artisans and craftsmen, who had traditionally produced a wide range of goods, found their markets shrinking as British goods flooded the Indian market. This led to a decline in demand for Indian handicrafts, which in turn affected the livelihoods of the artisans. Many were forced to abandon their traditional crafts and seek other forms of employment, often in the emerging industrial sector or in agriculture.

It is important to note that while discriminatory tariff policies were a major factor, they were not the only cause of the decline of the handicraft industry. Other factors, such as the introduction of machine-made goods from Britain, the disruption of traditional trade networks, and the overall economic policies that favored British interests, also played significant roles. However, the discriminatory tariff policy was a direct and deliberate measure that had a particularly devastating impact on the Indian handicraft industry.

Understanding the impact of these policies is crucial for comprehending the broader economic and social changes that occurred during the British colonial period. It highlights the ways in which colonial economic policies could have far-reaching and long-lasting effects on local industries and economies.

Option Analysis:
  • Option A: This option is correct. The British imposed discriminatory tariff policies that made it difficult for Indian handicrafts to compete with British goods. These tariffs were designed to protect British industries and ensure that Indian markets were flooded with British products, leading to the decline of the local handicraft industry.
  • Option B: This option is incorrect. While the commercialization of agriculture did have an impact on the Indian economy, it was not the primary reason for the decline of the handicraft industry. The focus on cash crops and agricultural exports did not directly affect the production and sale of handicrafts.
  • Option C: This option is incorrect. The zamindari system, which involved the creation of a class of landlords, primarily affected agricultural production and land ownership. It did not directly cause the decline of the handicraft industry, although it did contribute to broader economic changes.
  • Option D: This option is incorrect. The correct answer is provided in Option A, which identifies discriminatory tariff policy as the main reason for the decline of the handicraft industry during British rule.

Mnemonic: DTPI: Discriminatory Tariff Policy Impact

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