from industry, declined from 18.6 per cent in 1809 to 8.5 per cent in 1901.
    Much of the decline was due to a drastic fall in the number of weavers
and spinners in the Gangetic districts of Bihar, in the course of the century.
Doubt has been expressed on the accuracy of Hamilton’s survey; but it is the
only survey made at the beginning of the nineteenth century, and its results
are more reliable than other estimates based on mere guesswork. In view of
the impressions of contemporary observers, which accord closely with the
above statistical account, it is reasonably certain that employment and total
output in industry declined in the nineteenth-century India, despite the
emergence of modern factories. There is evidence, however, to show that this
deindustrialisation was arrested around the beginning of the twentieth
century.
Stagnation and Deterioration of Agriculture
Overcrowding of agriculture and increase in sub-infeudation led to
subdivision and fragmentation of land into small holdings, which in turn
made it difficult to effect improvements in agriculture. Nonavailability of
resources to improve agriculture was due to the extreme poverty of the
peasantry. Absence of any incentive to improve agriculture for the cultivator,
who was rack-rented by both the government and landlord; and neglect of
peasant and agriculture by the government by giving step-motherly treatment
to public works and agricultural improvement led to a further decline in the
agriculture sector.
GROWTH OF MODERN INDUSTRIES
Introduction
Slow and Hesitant Beginnings In the beginning, modern business and
industry in British India was predominantly European. In the late nineteenth
century, an Indian-owned complex of modern industry had sprung up in
Bombay and Ahmedabad, but this was an exception. The tea plantations, the
coal mines, the jute mills, etc., had developed in eastern India under