shipping, oil-pressing, tanning and dyeing
following causes:
Influx of foreign goods with the adoption of the policy of one-way free trade
by the British.
The construction of railways which enabled the British manufacturers to
reach the remotest villages of the country.
The oppression practised by the East India Company and its servants on the
craftsmen in forcing them to sell their goods below the prevailing wage.
The loss of European markets to Indian manufacturers due to the imposition
of high import duties and other restrictions on the import of Indian goods.
The gradual disappearance of Indian rulers and their courts, who were the
main customers of town handicrafts.
Rise in the prices of raw materials due to the British policy of exporting raw
    The downslide in Indian industries resulted in the following:
Depopulation and ruin of towns and cities which were famous for their
Increase in unemployment due to the absence of the growth of modern
Breaking of the union between agriculture and domestic industry in the
countryside which in turn led to the destruction of the self-sufficient village
Overcrowding of agriculture by the ruined artisans, thus adding to the general
pressure on land.
Course of Deindustrialisation
Statistical Evidence The statistical evidence available on employment in
the secondary sector of the economy seems to indicate that, despite the
emergence of factories and mines, the proportion of the population dependent
on industry declined significantly in the course of the nineteenth century. The
emergence of modern industry did not offset the decline in artisan industries.
There is only one set of survey figures for comparing the proportion of
people dependent on industries around 1800 with the corresponding figure in
These are the figures recorded by Buchanan Hamilton, during his survey of