prices of agricultural commodities in India
influence on prices. This also meant that the level of income and
prosperity of Indian farmers especially producing commercial crops came
gradually to be influenced by the level of prosperity of industrialized
countries like England which were now purchasing many of the
agricultural commodities from India.
Establishment of New Processing Industries: Changes in the
composition of India’s exports resulted in gradual emergence of a number
of new processing industries like cotton-ginning and cotton-pressing
factories, jute-presses, mills for polishing rice, tanneries and leather-works
and so on. Expansion of certain mineral products was mainly brought
about in response to export needs. Certain forest produces like lac began
to be exported. Naturally systematic production of a variety of forest
produce began to be undertaken in India at about this time.
Emergence of Managing Agency System: The most important among
the institutions that came into existence during the second half of the 19th
century were the European Managing Agency Houses. ‘Managing Agency
House’ was the peculiar product of the Indo-British relations during the
19th century. The Managing Agency Houses raised funds in England and
India and took responsibility on behalf of the clients (who had retired from
service in India after making lot of money and generally resided in
England) to run industries or trading establishments in India. Managing
Agency Houses undertook this responsibility on behalf of their clients who
provided finance but were not in the position to undertake day-to-day
responsibility of running the industrial or trading activities of the
Company. Capital from England also began to flow into India during the
second half of the 19th century when railway construction in India started.
Investment of foreign capital in India after 1850 pushed up the pace of
economic transition.
Breakdown of Traditional Self-sufficient Village Economy: Another
significant development was the breakdown of the system of traditional,
autonomous, self-sufficient village economy in India. The isolation of the
village came to be gradually broken because of developments in the field
of transport and communications, i.e., roads and railways. After the
conquest of India in 1818, British      authorities in India established highly