Commercial Policy of British in India

2469 Words Apr 7th, 2011 10 Pages
Commercial policy of the British (1757-1857)
1. The Coming of the Europeans into India (1600-1757) – The lure for trade and profit brought many trading companies to India. The trade –cum-political corporation called the English East India Company came to India and gave an expansive touch to India’s national commerce. It opened new markets for Indian goods in Europe and thereby increases the export of Indian manufacturers and encourage their production. This is the reason why the rulers tolerated and even encouraged the establishment of the Company’s factories in India. 2. British Protectionism Against Indian Imports— The increase volume of import of India textiles products into the British markets alarmed the British textiles
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The machine age in India began when cotton textile, jute coal mining industries were started in the 1850’s.But all these industries had a very stunted growth. Most of the modern Indian industries were owned or controlled by British capital. Foreign capitalists were attracted to Indian industry by the (1) prospects of high profits (2) Labour was extremely cheap, (3) raw materials were readily and cheaply available (4) India and its neighbours provided a ready market (5) For many Indian products such as tea, jute and manganese there was a ready demand the world over. (6) Profitable investments opportunities at home were getting fewer. (7) At the same time the colonial government and official were willing to provide all help and show all favours. Indian capital, on the other hand had to struggle from the beginning against the power of British managing agencies and British banks. In many cases over Indian-owned companies were controlled by Foreign owned or by controlled by managing agencies. Indian also found it difficult to get credit from banks, most of which were dominated by British financiers. Even when they could get loans, they had to pay high interest rates while foreigners could borrow on much easier terms. Gradually Indians also began to developed their own banks and

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