Lecture for RDL 701

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        Prof. Rajendra Prasad
Centre for Rural Development and Technology
• Synonymous with Development
• Phenomenon of last 3 centuries only
• Heavy utilisation of natural resources and hence there
• Major cause of disparity and poverty among nations and
  within nations
• Adverse environmental impact- Pollution of land, air and
  water, greenhouse effect, ozone layer depletion, floods,
  melting of glaciers, soil erosion, deforestation
• Over mechanization, automation, excessive speed, mass
  production, global marketing, labour exploitation
• Decivilization, dehumanization, crimes, wars, conflicts
• Colonization, militarization, terrorization
• Not synonymous with Development
• A part of human development
• Rational utilisation of natural resources and hence sustainable
• Should not cause disparity and poverty rather harmony and
  prosperity among nations and within nations
• Eco-friendly, environmentally sustainable, non polluting for
  land, air and water
• Balanced mechanization and automation, affordable speeds,
  production by masses, local marketing but global welfare
• Cultural and civilization promoting based on human values
  minimising crimes, wars and conflicts
• World as a community
• Knowledge-Develops through civilization.
• Science- Develops through knowledge.
• Technology-Develops through application of
• Organization-Nation.
• People-Global.
• Resources-Mainly renewables and judicious use
  of non-renewables.
• One of the most advanced and developed
  civilization, hence a accumulated source of
• Indian Sciences may be different from modern
  sciences, particularly from its approach to looking at
  the reality. Probably a reached its zenith millenniums
  of years back but may be going down for the last few
  thousands of years.
• Technology simple, almost no cost, yet accurate and
  effective, well within the reach of a common person.
  Most of them in practice till a couple of centuries
• Organization- a very weak nation, still
  living in the colonial mentality despite
  political independence.
• People- second largest nation on the
  earth, huge markets, huge strength, huge
  skilled man- power unutilized.
• Resources- huge natural resources, both
  renewable and non-renewable, mostly
  exploited by others (nations).
Geocentric (Ptolemaic) System

• The accepted model for
  1400 years

• The earth is at the center

• The Sun, stars, and
  planets on their spheres
  revolve around the earth: explains daily movement

• To account for unusual planetary motion epicycles were introduced

• Fit the Greek model of heavenly perfection – spheres are the perfect
  shape, circular the perfect motion
Heliocentric (Copernican) System
        • Sun at center (heliocentric)

        • Uniform, circular motion
             – No epicycles (almost)

        •   Moon orbited the earth, the earth orbited the sun
            as another planet

        • Planets and stars still on fixed spheres, stars don’t

        • The daily motion of the stars results from the
          Earth’s spin

        • The annual motion of the stars results from the
          Earth’s orbit
               Galileo Galilei

• Turned a telescope toward the heavens

• Made observations that:
   – contradicted the perfection of the heavens
       • Mountains, valleys, and craters on the Moon
       • Imperfections on the Sun (sunspots)
   – Supported the heliocentric universe
       • Moons of Jupiter
       • Phases of Venus – shows a full phase
           Tycho Brahe
•   Had two sets of astronomical
    tables: one based on Ptolemy’s
    theory and one based on

•   He found that both tables’
    predictions were off by days
    to a month.

•    He believed that much better
    tables could be constructed
    just by more accurate observations.

•   Tycho’s homemade instruments improved measurement precision from
    ten minutes of arc (which had held since Ptolemy) to less than one
The Industrial Revolution
 Mechanization, Urban Growth,
Proletarianization, Consumption
                  A New Kind of Revolution
Main Idea
In the 1700s conditions in Great Britain led to the rapid growth of the
textile industry, which in turn led to huge changes in many other

Reading Focus
• Why did the Industrial Revolution begin in Great Britain?
• How did industrialization cause a revolution in the production of
• How did steam power the Industrial Revolution?
• Where did industrialization spread beyond Great Britain?
                   A Revolution in Great Britain
During the 1700s changes in technology began based on the use of power-driven
            machinery. This era is called the Industrial Revolution.

       Factors for Success                    Agricultural Factors
• Exploration and colonialism           • Research and development on
• Seapower
                                        • Jethro Tull, seed drill
• Political stability
                                        • Improved livestock breeding
• Government support
                                        • Better varieties of food crops
• Growth of private investment
                                            – Increased food supply
                                            – Population grew
                                        • Enclosure movement
                 Britain’s Big Advantage

The Industrial Revolution began in Great Britain.
• Had essential elements for economic success
• Factors of production
   – Land
   – Labor
   – Capital
              Find the Main Idea
  Why was Great Britain in the 1700s ideally
   suited to be the birthplace of the Industrial
Answer(s): Colonies around the world supplied raw
materials; powerful navy and merchant fleet facilitated
trade; waterways provided power and transportation;
enclosure movement led to large labor supply; private
investors provided funds for investment; coal and iron
deposits provided needed resources
                         A Revolution in Textiles
                                  Textile Industry
•   Beginning of Industrial Revolution
•   Weaving was a cottage industry
•   Labor performed at home
•   Industrialization transformed this

    New Way of Making Cloth                     Cloth-making in Factories
•   Fabric made of wool or cotton             • Cottages too small
•   Supply of fibers increased in the 1700s
                                              • Factory invented
•   Slave labor in America
•   Invention of cotton gin                   • Power for factories?
•   Invention of spinning jenny
                                              • Water frame for water power
•   Invention of flying shuttle
                                              • Output increased 8x by 1770
         Identify Problem and Solution

How did machines solve problems that weavers

Answer(s): spinning jenny and spinning frame spun
thread into yarn, "flying shuttle" and power loom made
weaving faster
                   Steam Powers the Revolution

Development of Steam Engine                   Coal for Steam Engines
                                          • Steam engines needed large amounts
                                            of fuel
• First successful steam engine in 1712
                                          • Wood scarce
• Innovations by James Watt
                                          • Coal mining industry
• Steam power versus water power
                                          • Changing landscapes
• Steam locomotives
                                          • Dangers of mining
• Steamships
• Robert Fulton
              Make Generalizations

 What impact did the steam engine have on the
         growth of British industry?

Answer(s): major impact; used in textile mills,
factories could be located away from rivers, powered
locomotives and ships, led to development of coal as a
resource, more factories built near northern coal mines
                      Industrialization Spreads
Industrialization soon spread to western Europe and the United States. Other regions
did not industrialize in the 1800s. What was it about Western countries that
encouraged them to embrace industry?

    Why Western                      America                       Europe
                             • British restrictions        • Belgium, 1807
• Political liberty
                             • Hamilton, 1791              • France, 1815
• Freedom to compete
                             • Samuel Slater               • Germany, 1850
• Rewards reaped
                                – Water frame                  – Railroads
• Exploitation and
  improvements                  – Slater’s Mill                – Treaties
                             • Lowell’s Mill
                        Industry in Asia

Eventually, industry spread to Asia.
• Japan first in 1868
• Meiji government
• The 1900s—industrialization for
   – China
   – India
   – Russia
            Compare and Contrast

How did industrialization in Britain compare to
     the process in America and Europe?

Answer(s): Britain industrialized first, America and
Europe benefited from earlier inventions; Lowell
factory in Massachusetts was first all-in-one mill;
political issues delayed industrial development in
continental Europe
• During the first half of the
  19th century, the European
  manufacturing process
  shifted from small-scale
  production by hand at
  home to large-scale
  production by machine in
  a factory setting.
         At the Expense of Workers
• The shift meant high quality
  products at competitive prices,
  but often at the expense of
  workers. For example, the raw
  wool and cotton that fed the
  British textile mills came from:
   – Lands converted from farming to
     sheep raising, leaving farm workers
     without jobs
   – The southern plantations of the
     United States, which were
     dependent upon slave labor
                   Urban Growth
• Those who could no
  longer make a living
  on the land migrated
  from the countryside
  to the cities to seek
  work in the factories.
  1850: Population Living in Cities
 100                      England &
  75                      Wales
  50     50               France &
  25          25
   0                      Europe
        % Population
                     Population Growth
• At the same time, the
  population of Europe
  continued to grow.



     20                       1831
     10                       1851








                   The Plight of the Cities
• The sheer number of human
  beings put pressure on city
     – Housing, water, sewers, food
       supplies, and lighting were
       completely inadequate.
   Slums grew and disease, especially cholera, ravaged the population.
   Crime increased and became a way of life for those who could make
    a living in no other way.
  Conditions in the Countryside
• The only successful farmers
  were those with large
  landholdings who could afford
  agricultural innovations.
• Most peasants:
   – Didn’t have enough land to
     support themselves
   – Were devastated by poor harvests
     (e.g., the Irish Potato Famine of
   – Were forced to move to the cities
     to find work in the factories.
      The Role of the Railroads
• The railroads, built during the
  1830s and 1840s:
   – Enabled people to leave the
     place of their birth and migrate
     easily to the cities.
   – Allowed cheaper and more
     rapid transport of raw
     materials and finished
   – Created an increased demand
     for iron and steel and a skilled
     labor force.
                     The Labor Force
• No single description could include
  all of these 19th century workers:
   –   Factory workers
   –   Urban artisans
   –   Domestic system craftsmen
   –   Household servants
   –   Miners
   –   Countryside peddlers
   –   Farm workers
   –   Railroad workers
• Variations in duties, income, and
  working conditions made it difficult
  for them to unite.
        The Condition of Labor
• All working people, however,
  faced possible unemployment,
  with little or no provision for
• In addition, they were subject to
  various kinds of discipline:
   – The closing of factory gates to late
   – Fines for tardiness
   – Dismissal for drunkenness
   – Public censure for poor quality
   – Beatings for non-submissiveness
• During the century, factory
  workers underwent a
  process of
  proletarianization (i.e.,
  they lost control of the
  means of production).
   Factory owners provided the financial capital to construct the factory, to
    purchase the machinery, and to secure the raw materials.
   The factory workers merely exchanged their labor for wages.
    Family Structures Changed
• With the decline of the domestic
  system and the rise of the factory
  system, family life changed.
   – At first, the entire family,
     including the children, worked in
     the factory, just as they had at
   – Later, family life became
     fragmented (the father worked in
     the factory, the mother handled
     domestic chores, the children
     went to school).
Family as a Unit of Consumption

• In short, the European
  family changed from
  being a unit of production
  and consumption to being
  a unit of consumption
         Gender-Determined Roles
• That transformation prepared
  the way for gender-determined
  – Women came to be associated
    with domestic duties, such as
    housekeeping, food preparation,
    child rearing and nurturing, and
    household management.
  – The man came to be associated
    almost exclusively with
Poverty is the lack of basic necessities
that all human beings must have: food
and water, shelter, education, medical
care, security, etc. A multi-dimensional
   issue, poverty exceeds all social,
economic, and political boundaries. As
 such, efforts to alleviate poverty must
  be informed of a variety of different

4.4 billion people live in developing countries.
Of these …

    Three-fifths lack basic
Almost one third have no access to
           clean water
A quarter do not have
  adequate housing
A fifth have no access to
modern health services
“The amount of money the
       UK spends
 On chocolate each year
    could make Africa
   NOT live in poverty”
... In 1997 the richest fifth of the
world’s population had 74 times
 the income of the poorest fifth.

 ..The top three billionaires have
assets greater than the combined
    GNP of all least developed
  countries and their 600 million
Everyone has the right to a standard of living
adequate for the health and well-being of
him/(her)self and his/(her) family, including food,
clothing, housing and medical care and
necessary social services... Everyone has the
right to education.
Universal Declaration of Human Rights

Percentage of people living below the
             poverty line
       Europe and Central Asia
     Latin America and Caribbean
          Sub-Saharan Africa
     Middle East and North Africa
              South Asia
Causes of third world poverty

Third world countries lose out
through unfair trade agreements,
lack of technology and
investment, and rapidly changing
prices for their goods.
Work and globalisation
Better communications and transport have led to a
“globalised” economy. Companies look for low-
cost countries to invest in. This can mean that,
though there are jobs, they are low-paid.

War or conflict
When a country is at war (including civil war)
basic services like education are disrupted.
People leave their homes as refugees. Crops are
Third world countries have to pay interest on their
debts. This means they cannot afford to spend
enough on basic services like health and
education; nor on things like transport or
communications that might attract investment.
If you have land you can grow your own food.
But many people in the Third World have had
their land taken over by large businesses, often
to grow crops for export.
       Affordable or free health care is necessary for
       development. In poor countries the
       percentage of children who die under the age
       of five is much higher than in rich countries.
       HIV/AIDS is having a devastating effect on the
       Third World.

HIV is now the single greatest threat to future economic development in Africa. AIDS
kills adults in the prime of their working and parenting lives, decimates the work force,
fractures and impoverishes families, orphans millions...
· Callisto Madavo, vice-president of the World Bank, Africa region 1999
  Food and education

Affordable, secure food supplies are vital.
Malnutrition causes severe health problems, and
can also affect education. Without education it is
difficult to escape from poverty. This becomes a
vicious circle – people who live in poverty cannot
afford to send their children to school.
When we measure poverty we find differences
between the level experienced by men or boys,
and women or girls. Women may be
disadvantaged through lack of access to education;
in some countries they are not allowed to own or
inherit land; they are less well paid than men.
 Environment
A child born in an industrialised country will add
more to pollution over his or her lifetime than 30-
50 children born in the Third World. However, the
third world child is likely to experience the
consequences of pollution in a much more
devastating way. For example, annual carbon
dioxide emissions have quadrupled in the last 50
years. This contributes to global warming, leading
to devastating changes in weather patterns.
Bangladesh could lose up to 17% of its land area
as water levels rise.
Poverty Targets

2015 poverty targets
Members of the Organisation for Co-operation and
Development (OECD) agreed these after the 1995
Copenhagen summit. They aim to reduce poverty in
third world countries by at least one half by 2015.

20/20 initiative
At the same summit some governments agreed that
20% of aid and 20% of the budget of the developing
country receiving that aid would be spent on basic
Access to basic services for everyone would cost
approximately $US40 billion more per year than is
spent now. This is 0.1% of world income. World
military spending is $US780 billion per year. US$50
billion is spent on cigarettes in Europe every year.

 Fair trade
Fair trade guarantees higher, more stable prices for
third world producers. Look out for products with a
Fairtrade Mark.
Poverty In India
Alex Lally and Ally Hannigan
• One fifth of the world’s people live on less
  than $ 1 a day, and 44% of them are in South
• 26 percent of India is below the poverty line
• This is happening in mainly in rural areas of
    Poverty in the States of India
• One half of India’s poor is located the three
  states of Uttar Pradesh, Bihar, and Madhya
• Maharashtra, West Bengal and Orissa account
  for 22.5% of poverty
Female Literacy and Infant Mortality Rates

• Lack of food and health care due to low
  income/assets is associated with the higher
  probability of a new born child dying between
  birth and the age of one
• The High Female illiteracy rate has a major
  impact on IMR
• If more women were literate the IMR would
  be much higher
          Why is this Happening
• Even though India’s economy is growing there
  wealth distribution is uneven
• 1/4 of the nation's population earns less than
  the government-specified $0.40/day
• Unemployment and underemployment
• Over-reliance on agriculture
• High population growth rate
             Cultural Reasons

• The Caste System(Hindu Religion) prevents
  people from educational, ownership, and
  employment opportunities
          What is Being Done
• Microfinance( very small loans) has helped
  India a lot
• There are multiple organization to help feed
  them and keep there agriculture going
• The Planning Commission sets up a five year
  plan for India to help them achieve goal such
  as ending poverty
  Positive Things Happening in India:
              Middle Class
• Currently India adds 40 million people to its
  middle class every year
• estimated 300 million Indians now belong to
  the middle class
• one-third of them have emerged from poverty
  in the last ten years
• It is predicted that by 2025 the Majority of
  Indians will live in middle class
 The Government of India says that
24% of India’s population is below the
          poverty line.*

  * Planning Commission of India, 1999-2000, Government of India
            However, we also know that…
• 80% of India does not have access to public health facilities. (Dr.
   Anbumani Ramadoss, Minister for Health and Family Welfare)

• 47% of Indian children under the age of 5 years are
  undernourished. (Human Development Report 2005, UNDP)
• 71% of the children in 15-19 age group have not completed a
  secondary education, their fundamental right. (National Sample Survey on
   Education, 1999-00, NSSO)

• 57% of India does not have access to electricity.
   (World Development Indicators 2005, World Bank)

• 70% of India does not have access to a suitable toilet. (National Sample
   Survey on Housing, 2004, NSSO)

• 49% of India does not have proper shelter.
   (National Sample Survey on Housing, 2004, NSSO)

• 38% of India does not have access to a nearby water source.
   (National Family Health Survey, 1998-99, IIPS)
Despite such abysmal figures on India’s
      development, how can the
 government claim that only 24% of
            India is poor?

     Clearly something is amiss…
   The answer lies in how poverty is
           defined in India
• The present poverty line is a conveniently low
  threshold based largely on only caloric norms.
• In fact, it should be called the starvation line.
• It does not factor in norms for nutrition, health,
  clothing, housing, education etc.
• Even worse is that the Planning Commission
  recognizes this shortcoming and yet doesn’t do
  anything about it.
“I have learnt to seek my happiness by
    limiting my desires rather than
      attempting to satisfy them.”
            John Stuart Mill
What is this inadequate definition?
• In 1999-2000, the poverty line defined by the
  Government of India was Rs. 327 and Rs. 454
  per month per capita in rural and urban India
• Adjusting for inflation, this now comes to Rs.
  368 and Rs. 559.
• Thus ONLY those who live below Rs. 559 a
  month in our cities (or Rs. 368 in our villages)
  are considered to be poor by the Indian
How is this “starvation line” calculated?
• The present line is based on the norm that the
  average person in rural India should consume 2400
  calories a day and a person from urban India should
  consume 2100 calories a day.
• The minimum cost of obtaining such nutrition (about
  650 grams of grains) was calculated in 1979 when
  this line was formed.
• All those who spent less than this amount on food
  were considered poor.
• Since then, this amount was periodically updated
  based on inflation.
The inadequacy of the present poverty
• The definition is based on a caloric norm that is
  3 decades old!
• Research shows that even those who are
  currently above the poverty line do not meet
  the prescribed caloric norms.
• Calories are anyway an insufficient nutritional
  norm as it does not include the need for
  minerals, vitamins, etc.
• Most importantly, no norms for other basic
  needs such as healthcare, shelter, electricity,
  education have been factored in.
  Table 1: Percentage and Number of Poor in India since 1973 *
                                              Annual Real Rate
           Percentage of    Number of Poor
  Year                                        of Decline in the
               Poor            (crores)
                                              Number of Poor ^
1973-74        54.9 %            32.13                -
1977-78        51.3 %            32.89            ( 0.59 %)
1983           44.5 %            32.29             0.31 %
1987-88        38.9 %            30.71             1.25 %
1993-94        36.0 %            32.03            ( 0.70 %)
1999-00        26.1 %            26.02             3.40 %
2004**         23.6 %            24.97             0.82 %
* As per the Expert Group Methodology
^ A negative rate of decline means the number of poor increased
** Based on the estimated population of 2004 and poverty ratio
calculated using the latest National Sample Survey in 2004.
Source: National Institute of Rural Development (2004): Rural
Development Statistics, 2002-03.
       The story of India’s poor
• Even though there has been a decline in the
  number of poor in percentage terms the
  absolutes numbers remain quite high.
• The absolute number of poor declined from
  32 crores (out of the 58.4 crores population)
  in 1973 to 24.97 crores (out of 109 crores
  population) in 2004.
• The annual decline is a mere 0.81%
 How defining poverty affects policy
• The present inadequate definition of poverty
  has ensured that all policies aimed at
  alleviating poverty aim much too low.
• They focus just on the elimination of hunger
  rather than on eliminating poverty as a whole.
• If every “starving” person was given 650 gms
  of food grains daily it would cost Rs. 57000
  crores a year.
• Total wage bill of babus is over Rs. 220,000*

    *Government of India (2005c): National Accounts Statistics 2005,
   The National Rural Employment Guarantee
                Scheme (NREGS)
• The present NREGS guarantees one able-bodied
  member of each family work at a wage of Rs. 60 a
• Therefore even if this person works on all 30 days of
  a month, he/she earns only Rs. 1800.
• For a family of 5, that amounts to Rs. 360 per person,
  which is exactly what the rural poverty line is right
• Therefore, this at best only ensures that each person
  in the family consumes a certain quantity of food
  grains. Moreover, the guarantee is only for 100 days
  in a year leaving the poor to fend for themselves for
  the rest of the 265 days.
 Towards a more realistic definition of
• We should aim to define poverty that
  visualizes it in a more human and humane
• CPAS poverty line includes the cost of a
  nutritious diet, healthcare, clothing, etc.
• We have also included those items that
  cannot be described monetarily – such as
  access to water, housing, education, etc.
    I. Nutritional norms and costs
• The National Institute of Nutrition (NIN) postulates
  what it considers is a nutritious diet for healthy
• Along with this information and the prices of various
  food items (obtained from various official sources),
  one can calculate the cost of this diet.
• Using the age-sex distribution information of the
  population, one can calculate that the per capita
  expenditure on food that provides for the
  recommended balanced diet for the average Indian
  person should be around Rs. 573 per month.
                                                           Cost of Diet (in Rs.)
  Food groups                 Infants                                          Years
                              month           1-3         4-6          7-9             10-12          13-18          Adult
                                                                                   Girl      Boy    Girl   Boy    Wom
                                                                                    s         s      s      s      an
Cereals                        0.45          1.2         2.09         2.69        2.69       3.29   2.99   4.19   4.79    6.88
Pulses                         0.44         0.87         1.31         1.74        1.74       1.74   1.74   1.74   2.61    2.61
Milk                            7.5          7.5          7.5          7.5         7.5        7.5   7.5    7.5     4.5     4.5
Vegetables                     0.78         1.17         1.57         2.35        2.35       2.35   2.35   3.13   3.13    3.13
Fruits                         1.66         1.66         1.66         1.66        1.66       1.66   1.66   1.66   1.66    1.66
Sugar                          0.48         0.48         0.58         0.58        0.58       0.67   0.58   0.67   0.864   1.056
                               0.53         1.06         1.32         1.32        1.32       1.32   1.32   1.32   2.12    2.91
Total daily                                                                       17.8       18.5   18.1   20.2
                              11.84        13.94        16.03        17.84                                        19.67   22.75
cost                                                                               4          3      4      1
Total monthly
                               360          424           487          543         543        563   552    615    598     692
Note: Cereals include an average of rice and wheat (Rs. 9.97)
      Price of Arhar is used for pulses
      Mustard oil is used for calculations on visible fats/oils
                                                        Source: Calculated using Table 3 and 4.
         II. Meeting basic health needs
• Average monthly per capita healthcare cost can be
  calculated by multiplying the probability of requiring
  medical care with the actual cost of such medical
  care. This is called the ‘expected value’ of healthcare
• The ‘Universal Health Insurance Scheme’* is a health
  insurance scheme targeted at the low-income group.
  As per this scheme, for a premium of Rs. 365 per
  annum, an individual can get insured for all in-patient
  medical care up to a sum of Rs. 30,000.
• Therefore Rs. 365 per annum or Rs. 30 per month per
  capita is the ‘expected value’ of health expenditure
  for the poor in India.

   *Ahuja, Rajeev (2004): “Health Insurance for the Poor in India”, Working Paper No. 123,
              Indian Council for Research on International Economic Relations.
             III. Access to water

• The minimum water consumption as per the
  World Health Organisation should be about 50
  litres a day per person to cover consumption
  and hygiene needs.
• However, as per the latest National Family
  Health Survey of 1999-00, 37.7% of
  households do not have access to safe water
  supply within 15 minutes of their home
• You cannot put a price on this.
                          IV. Access to shelter
• Detailed qualitative information about housing in India is
  hard to come by. However, there is information on the
  percentage of households living in pucca’, ‘semi-pucca’ or
  ‘katcha’ houses from a nationwide survey on housing
  done in 2002
• In rural and urban areas, 64% and 23%* of the
  households respectively do not have a pucca house.
• Thus a weighted average of 49% of all households do not
  have shelter that meets our minimum standards.

    *Government of India (2004b): NSS Report No. 488: Housing Condition in India, Housing
    Stock and Constructions, NSS 58th Round, July 2002-December 2002, National Sample
                              Survey Organisation, New Delhi.
                            V. Sanitation
• The condition of public sanitation is extremely
  poor in India. Even the most basic living standard
  demands that a dwelling unit should have access
  to a latrine that is either connected to a sewage
  line or a septic tank.
• However, 89 per cent and 37 per cent of rural
  and urban India, respectively, or a weighted
  average of 69.5 per cent of Indians, do not have
  access to such a latrine facility*.

 *Government of India (2004b): NSS Report No. 488: Housing Condition in India, Housing
 Stock and Constructions, NSS 58th Round, July 2002-December 2002, National Sample
 Survey Organisation, New Delhi.
                    VI. The cost of energy
• Presently, about 57 per cent of Indian households
  do not have electricity.
• Even in households that have an electricity
  connection, the supply of electricity is extremely
• With minimal fittings and reasonable usage, the
  monthly cost on electricity comes to Rs. 175 for a
• Considering that there are 4.99 persons to a
  household in India, the per capita monthly
  expenditure on electricity comes to Rs. 35.

      *Government of India (2003): Electricity Act, 2003, Ministry of Power, New Delhi
                             **Rate list printed by BSES, 2005
      Minimum Electricity Consumption of a Household in a Month
                                              Usage               Cost (Rs.
                            Wattage Quantity                h
  Appliance                                  (hours/               2.2 per
                              (A)     (B)             (AxBxCx30)
                                             day) (C)               unit)
Ceiling Fan                   80          2     12        57.6       126.72
 Light Bulb                   40          2      4        9.6         21.12
      Tax *                                                            7.39

    TOTAL                                                 67.2       175.23
* 5% tax on variable cost

Source: Rate list printed by BSES, 2005
        Main Type of Fuel Used for Cooking in India (percentage)
             Type of fuel                             Urban                 Rural               All India
                  Wood                                 23.1                  73.1                  59.3
           Crop residues                                 0.5                  8.1                   6.0
             Dung Cakes                                  1.4                  8.4                   6.5
Coal/Coke/Lignite/Charcoal                               4.9                  1.7                   2.6

               Kerosene                                21.5                   2.7                   7.9
               Electricity                               0.8                  0.2                   0.4
                   LPG                                 46.9                   5.1                  16.7
                 Biogas                                  0.6                  0.5                   0.5
                 Others                                  0.2                  0.2                   0.2
                   Total                                100                   100                   100
Source: International Institute of Population Sciences [IIPS] and ORC Macro (2000): National Family Health Survey
(NFHS-2), 1998-99, IIPS, Mumbai.
          VII. Clothing requirement
• Calculating the basic need of clothing is
  difficult, as requirements vary considerably
  according to region, gender, age and culture.
• We calculated the minimum amount of cloth
  required and its cost for persons by age and
  gender living in the plains.
• The weighted average of the total costs came
  to Rs 207 per annum on clothing.
                                    Minimum Clothing Requirements and Cost
                        Child                      Male                       Female
                                                                                                       Male Adult                Female Adult
                      (Age: 0-4)                (Age: 5-17)                 (Age: 5-17)

                                                                            * 3.3 metres
                     * 1 metre of            * 3.6 metres of                of shirt
                                                                                                      * 1.4 metres
                     shirt                   shirt material                 material
                                                                                                      of shirt                   * 1 three-metre
                     material                * 2 metres of                  * 1.8 metres
                                                                                                      material                   sari
Clothing             * 0.8 metre             trouser material               of skirt/salwar
                                                                                                      * 1.2 metres               * 1 metre of
                     of trouser              (includes one                  material
Require              material                pair of clothing               (includes one
                                                                                                      of trouser                 blouse material
ments                                                                                                 material                   (includes one
                     (includes               and two uniform                pair of
                                                                                                      (includes one              sari and a
                     two pairs of            shirts and one                 clothing and
                                                                                                      pair of                    blouse)
                     children’s              uniform                        two pairs of
                     wear)                   shorts/trousers)               school

Cost of
                         150.68                      267.96                      343.00                    190.39                       131.07
Price of cloth for shirt, pyjama, cloth, etc: Rs. 47.85
Price of cloth for coat, trousers, overcoat, etc: Rs. 102.83
Price of sari (3 m): Rs. 83.22
Prices are calculated using the weighted average of the rate at which urban and rural India bought cloth material as given in GoI 2001c. The figure is
adjusted for inflation.
           VIII. The right to education
• About 71.16% of the people in the 15-19 year age
  group had not completed a secondary
• It should be the minimum responsibility of the State
  to ensure that each young citizen has access to cost-
  free schooling with adequate infrastructure and
  qualified teachers.
• Moreover, such an institution should lie within a 2
  km radius of each person’s home so as to ensure not
  more than 30 minutes are spent walking to school.

                   *National Sample Survey on Education in 1999-00
IX. Access to an All-Weather Road and Public
• Connectivity is probably the single most important
  factor guiding whether people of a particular region
  are being able to access their basic needs of
  education, healthcare, shelter etc.
• Around 43% of Indian villages or over 2,70,000
  villages are not connected by road*.
• Furthermore, around 25% of villages that have a
  population of over 1000 are not connected by

             *Lok Sabha Starred Question No. 238, dated 13.03.2001.
    **Government of India (2002b): National Human Development Report, Planning
                              Commission, New Delhi
     X. Miscellaneous expenditures
                                      Monthly Per Capita Miscellaneous Expenditure
• The total cost of obtaining the               (in Rs., adjusted for inflation)
  four quantified variables namely
  – nutrition, healthcare, clothing
  and energy consumption comes                Item           Rural      Urban
  to Rs. 675 per person per month.                                                Average

• Apart from this there are
  miscellaneous expenditures             Consumer             51.57     67.40        54.14
• This paper includes expenditure        Goods
  under the heads of                  Miscellaneous
  ‘miscellaneous consumer goods’,        Consumer             74.86     85.76        74.66
  ‘miscellaneous consumer                Services
  services’ and ‘durable goods’.      Durable Goods           30.25     22.55        26.23
• The total monthly miscellaneous
  expenditure comes to Rs. 164        Total                    157        176         164
  per person.                         Source: Government of India (2001a): NSS Report No. 454:
                                          Household Consumer Expenditure in India, 1999-2000
                                           – Key Results, National Sample Survey Organisation,
                                                                New Delhi.
          Poverty Ratio using a Holistic Poverty Line

Area                                                               Percentage

Rural                                                                     84.6
Urban                                                                     42.4
Weighted Average                                                          68.8
   Calculated using Government of India (2001a): NSS Report No. 454: Household Consumer
Expenditure in India, 1999-2000 – Key Results, National Sample Survey Organisation, New Delhi &
Government of India (2005b): “Statistics, Index Numbers”, Labour Bureau, October 2005 &a poverty
                                           line of Rs. 840.
             The bare truth
• 37.7% of Indian households do not have
  access to a nearby water source,
• 49% do not have a proper shelter,
• 69.5% do not have access to suitable toilets,
• 85.2% of Indian villages do not have a
  secondary school and
• 43% of Indian villages do not have an all-
  weather road connecting them.
      The redefined poverty line
• Summing up minimum costs for nutrition (Rs.
  573), health (Rs. 30), clothing (Rs. 17), energy
  consumption (Rs. 55) and miscellaneous
  expenditure (Rs. 164); the poverty line in
  India should be about Rs. 840 per capita per

                   *The actual sum is Rs. 839; we round it off for convenience.
• A person is poor in India if he or she has a
  monthly per capita expenditure lesser
  than Rs. 840 OR does not have access to
  either drinking water; proper shelter;
  sanitation; quality secondary education; or
  an all-weather road with public transport.
Technology, Culture, and Empire:
       The Colonial Age
• In 1498 Vasco da Gama opened sea
  route to India
• Before 1498, the civilizations of
  Europe and India virtually, and in a
  greatly limited sense, geographically
  isolated from one another.
• Rise of Islam: Changez Khan and          Vasco da Gama
• Even after 1498, in fact till the year
  1800, the relation between East and
  west still continued to be conducted
  within a framework and on terms
  established by Asian nations.

Empire of
• For the two hundred and thirty years after
  Albuquerque’s disastrous attempt to challenge
  the power of the Zomorin of Calicut (1506)-he
  had to be carried unconscious to his ship-no
  European nation attempted any military
  conquest or tried to bring any ruler under
  control. In 1739, for example, the Dutch who
  came up against the Raja of Travancore had to
• Company settlement made possible in Madras
  in 1708 after grant of 5 villages by regime in
• In addressing the Emperor one of the
  Englishmen described himself as “the smallest
  particle of sand, John Russell, President of
  East India Company with his forehead at
  command rubbed on the ground”
• Europe at the time had but little to offer to
  Asian Countries
• Founding of East India Company in 1600
• Company’s attempt to establish trade with China
  were unsuccessful
• Tried to dispose English woollen cloth on spice-
• Discovered: only commodity acceptable was
  Indian textiles and it prompted it to seek a
  market for its woollen goods in India
• Ideas was to buy inn return the Indian cotton and
  silks wanted by spice-islands
• English ships reached Surat (Gujarat) in 1608.
• In 1611 the company's factor wrote top directors
  in England “ Concerning cloth, which is the main
  staple commodity of our is so little
  regarded by the people of this country that they
  use it but seldom”
• Decade later company abandoned hope for big Asian
  market for English cloths
• Some other commodity had to be battered if company
  wished to get hands on spices and pepper of Malay
• Other alternatives: looking glasses, sword blades, oil
  paintings, drinking glasses, quicksilver, coral and lead.
• To simulate the demand for English lead, it was decided
  to send out “plumbers to teach them the use of pumps
  for their gardens and spouts on their houses”.
• Followed by scheme to persuade Jahangir to pay for
  erection of waterworks for the supply of Agra.
• London Directors heard “ Indians are superstitious and
  wash their hands whenever they go to their worship”,
  immediately ordered the dispatch of a consignment of
  wash-basin for trial sale
• It was concluded that “no commodity brought out is
  staple enough to provide (in return) cargo for one ship”
• Company was compelled to fall back on the
  export of bullions (in form of gold and silver)
  for purchase of goods in India
• The Moghul empire declined in the first half of the
  eighteenth century: more precisely, effective central
  control over the Empire’s territories was loosened and
  lost after the death of Bhadur Shah-I in 1712.
• The decline of central Moghul power did not mean
  much to economy is evident from a quick look at the
  trade figures of the economy after Moghul decline.
• In 1708, Britain imported goods from India worth
  4,93,257 pounds and exported in return goods worth
  1,68,357 pounds.
• By 1730, while the imports to England rose to
  10,59,759, the exports fell to 1,35,484 pound .
• In 1748, imports into Britain were still 10,98,712 and
  the exports had declined further to 27224 pounds. The
  balance was paid by Britain in bullion.
• In fact between 1710 and 1745, India received
  17047173 pound in bullion.
• By 1757, the East India Company, with the
  support of a powerful Hindu capitalist, had
  gained a foothold in politics of Bengal.
• Hindu merchants were keen to associate with
  foreigners to reap huge profits.
• The east India company received the right of
  revenue of a district: the twenty-four
• By 1764 Moghul emperor was forced to
  extend the revenue rights of the company to
  other territories in Bengal, Bihar and Orissa.
• The company’s early administered in Bengal is
  too sordid: it used its monopoly positions to
  impose taxes of numerous kinds on different
  products including salt, betel–nut, tobacco .
• The Indian textile industry declined before the
  industrial revolution in Britain. The
  displacement      of     Muslim      aristocracy
  simultaneously displaced domestic demand.
• A famine in Bengal in 1770 decreased Bengal’s
  population by a third.
• The company’s behaviour toward the weaver
  was deleterious.
• Political power of English allowed entire good
  to be sold to them.
• A document of that time noted: “ they all kind of grains, linen and
  whatever other commodities are provided in
  the country. In order to purchase these
  articles, they force their money on the riots
  and having by these oppressive methods
  bought the goods at a low rate, they oblige
  the inhabitants and the shopkeepers to take
  them at a high price, exceeding what is paid in
  the markets. There is now scarce anything left
  in the country”
• After the company took over the
  administration of Bengal, the once favourable
  balance of trade was reversed.
• In 1773, a report made to parliament
  calculated revenue collections to be
  1,30,66,761 pounds for six years. And
  expenditure was 90,27,609 pounds. Company
  was left with 40,37,152 pounds.
• This surplus was used to purchase Indian
  products for exports into Britain: thus did the
  colonial “drain” begin.
• Bengal had a surplus on trade with other parts
  of India and these revenues were used by East
  India Company to finance military campaign in
  Madras and Bombay.
• Also to finance local cost of servants and
  private traders.
• The annual net transfer of resources to the
  U.K. Amounted to about 1.8 million pounds in
• Indian cotton manufactures continued to be
  to be imported into Britain.
• It reached peak in 1798 and in 1813 it was
  about 2 million pounds.
• Industrial revolution in England revolutionized
  textile industry, the cost dropped to nearly nine-
• But Indian goods were still in demand: WHY?
• Even thirty years after industrial revolution,
  Indian goods were still cheaper than machine
  made goods.
• This was due to the fact that the weaving
  process in England was not extensively
• Historian H.H. Wilson said: “It was stated in
  evidence ( In 1813) that the cotton and silk goods
  of India up to the period could be sold for a profit
  in the British market at a price from 50 to 60 per
  cent lower than those fabricated in England. It
  consequently became necessary to protect the
  latter by duties of 70 and 80 per cent on their
  value, or by positive prohibition. Had this not
  been the case, had not such prohibitory duties
  and decrees existed, the mills of Paisley and
  Manchester would have been stopped in their
  outset, and could scarcely have been again set in
  motion even by the power of steam…. The
  foreign ultimately strangle      a competitor with
  whom he could not have contended on equal
• In Britain, the power-loom was being used on a wider
  scale after 1815.
• In 1814, the quantity of cotton goods exported to India
  from Britain had been a mere 818,208 yards; in 1835,
  the figure had risen to 51,777,277 yards.
• Duties on Indian goods imported into Britain were
  finally repealed in 1846, when Britain legally accepted
  the laissez-faire ideology
• By then, the British factory system’s foundations had
  been firmly cemented
• There still remained the problem of silk: fine silks could
  not be woven by power
• Yet a great deal of raw silk had been continuously
  imported into Britain in the 1820s, where it was
  worked and later exported to European markets
• Till the thirties, British silk goods had done well in
  France, where Indian goods were officially
• Once the prohibition was removed, the entire
  British trade collapsed in favor of Indian silks.
• The export of raw silk from India began to
  decline; in 1829, India had exported silk worth
• By 1831, this raw silk export had fallen to $
  540,000: more raw silk was being used in India
  for manufactures for export
• In 1832 British silk exports to France had been
  valued in the region of $5,500 and India’s stood
  at $168,500.
• The duty on Indian finished silk goods into
  Britain was fixed at 20 per cent.
• While British finished silk goods to India paid a
  nominal duty of about 3-1/2 per cent.
• A proposal to equalize the duties was rejected
  by a Select committee, to protect British
• The following discussion between Mr. Cope, a
  silk weaver in Britain, is not only significant,
  but has contemporary connotations too:
Mr. Brocklehurst: What would be the effect upon this branch of your trade if the
   present duty on East Indian silk goods were reduced from 20 to 3-1/2 per cent?

Mr. Cope: In my opinion, it would have the effect of destroying this branch to trade;
   and if so it would rob of their employment, and consequently of the means of
   living honestly by their labour, all those parties which I have named, and would
   make them destitute and reckless, and cause them to become a burden to the rest
   of society, whose burdens are already too heavy. It would throw out of
   employment a large amount of capital and would give into the hands of foreigners
   that employment by which we ought to be supported.

Mr. Elliott: Do you think that a labourer in this country who is able to obtain better
   good has a right to say, we will keep the labourer in the East Indies in that position
   in which he shall be able to get nothing for his food but rice?

Mr. Cope: I certainly pity the East Indian labourer , but at the same time I have a
   greater feeling for my own family than for the East Indian labourer’s family; I think
   it is wrong to sacrifice the comforts of my family for the sake of the East Indian
   labourer Because his condition happens to be worse than mine; and I think it is
   not good legislation to take away our labour and to give it to the East Indian
   because his condition is worse than ours.
• There is a clear pattern in the attempts by British
  manufacturers to convert India after 1813 into a
  complementary satellite economy providing raw
  materials and food for Britain and an ever
  widening market for its manufactures.
• Twenty years after the enshrining of the free
  trade legacy, Richard Cobden, one of the chief
  pillars of the Manchester school suggested that
  the principles of adam Smith did not govern
  relations between Great Britain and India.
• In 1862, Thomas Bazley, the President of the
  Manchester Chamber of Commerce, had already
  decide that the “ great interest of India was to be
  agricultural rather than manufacturing and
• The free traders with their laissez-faire attitudes were
  irked beyond reason by those nominal duties the
  Indian colonial government levied on English imports
  into India.
• As Harnetty notes: “The full development of India as a
  source of agricultural raw materials (and this meant, of
  course, cotton) was inhibited by the Indian cotton
  duties which, by protecting native manufactures,
  caused the consumption in India of large quantities of
  raw cotton that otherwise, i.e., under “ free
  competition” would be exported to Great Britain. It
  followed that the duties must be abolished, thereby
  enhancing the supply of cotton for british industry and
  enlarging the market in India for British manufacturing
  goods. Such a policy could be justified on theoretical
  grounds by the doctrine of free trade”.
• But to encourage India as a producer of raw materials
  required more than economic freedom. It also involved a
  contradictory policy of governmental paternalism.
  Lancashire demanded that the Government of India inspire
  the development of private enterprise in the Indian empire
  by financing some of this development. In line with this
  demand. The authorities in India guaranteed railway
  construction and undertook numerous public works. They
  also undertook the experimental cultivation of cotton and,
  in this connection, made the first attempt at state
  interference in India in the fields of production, marketing
  and trade
• In 1860, the East India and China Association was still
  protesting that a new increase in the cotton duties in India
  (necessitated by a deficit in the Indian budget) would give a
  “ false and impolitic stimulus to yarn spun in India, thereby
  serving to keep alive the ultimately unsuccessful contest of
  manual power against steam machinery”.
• Another petition from the Manchester chamber of
  Commerce in 1860 could continue to claim that any
  new tariff on British imports into India would harm not
  only the manufacturer of Great Britain but also the
  population of India “by diverting their industry from
  agricultural pursuits into much less productive
  channels under the stimulus of false system of
• Sir Charles Trevelyan, finance minister of India in
  1860s, was anxious to see the disappearance of Indian
  weaver as a class, a development he thought best for
  both Britain and India.
• India would benefit because of weaver, faced with
  competition from machine made goods, would be
  forced to give up his craft and turn to agriculture; the
  increased labour supply would then raise output and
  England would benefit since makers of cloth would be
  converted into consumers of Lancashire goods.
• It comes as no surprise to learn that when the
  cotton duties were totally abolished in 1882.
• The viceroy of India at that time, lord Ripon was
  privately willing to admit that it was pressure
  rather than fiscal arguments which had led to
  their general repeal, and that India had been
  sacrificed on the altar of Manchester.
• Chief commissioner of central province argue
  that construction of a railway would not only
  secure the more rapid export of raw cotton but
  also would lower the cost of imported Lancashire
  piece goods.
• This in turn would divert, labour from spinning
  and weaving to agriculture and so lead to an
  extension of areas under cultivation.
• The Scottish firm Fergusson & Co. Established the first
  cotton mill in India at Bowreah, Calcutta with 20,000
  spindles and 100 looms.
• Fergusson & Co. Also imported Scottish lassies to work
  as operatives in the mill-to begin with it was shutdown
  in 1840.
• In 1817, the semi-fuedal labour-thekedar apparently
  had yet not made his appearance, bringing with him
  the impoverished peasant to be turned to industrial
  worker with option of starvation, and bare subsistence
  under the asurious board of the thekedar and his
  principal- a legacy which still continues
• It was in 1859 that the full implication of a restless,
  alienated, mobile rural manpower were realized, not
  surprisingly in Bengal through the enactment of the
  permanent tenancy laws.
• In 1829, at Pondicherry the second cotton mill was
  opened, in 1830 another at Calcutta with its supply
  from south.
• These mills were producing yarn primarily for china
  market and had local advantage of reduced freightage.
• The task of displacing the weaver and the spinner was
  being pursued by imported piece-goods especially at
  urban centres.
• The task of collection and distribution of raw cotton
  was done among others by the mill owners
• The multiplication of cotton mills came later in a
  decade’s time.
• The German war broke out, and with it started
  the hemp supply from Russia to mills in
• Feudal Russia converted itself into a semi-
  feudal one with its program of import of
  continental capital and equipment and
• The disrupted cotton supplies from American
  slave plantation, following civil war in USA
  (1861-1865), stimulated a cotton epidemic in
• After the end of civil war, there were
  bankruptcy but the mills survived.
• The bankruptcy of 1865 must have left a deep
  and lasting impressing on Jamshed Tata, then
  cotton merchant, who had been rescued by his
  income from army supplies.
• In 1860 Jamshed Tata bought an old cotton mill at
  Bombay and try to recondition it. In 1877 he
  started the empress mills at Nagpur, well in the
  interior of cotton growing area with Tata as
  managing agents to it
• By 1989 there had been 17 cotton mills with 4
  lakh spindles, 4600 looms and 10,000 as labour
  force, along with European mangers, engineers
  and technician
• Till 1900 domestic consumption totally from
  handloom, mills mainly for china market.
• In 1927 cloth woven by handloom continued
  to supply 26% of total cloth consumption in
• In 1930, Arno Pearse, a Manchester man,
  made a study tour in India to observe its
  cotton industry. “it is estimated”, he wrote:
  “that there are in India intermittently at work
  5,00,00,000 spinning wheels (charkhas) which
  yield 48 lbs of yarn per spindle per year, and
  almost 20,00,000 handlooms.
           By Dr. Benjamin Heyne (1st September 1795)

• Report of the Letchemporam Iron Works; thinking that
  Indian manufacture, may prove of essential benefit.
• Excursion to the diamond mines of Mallavilly, proved
• Learned on the road, that many places in the Noozeed
  Zemindary, furnished iron for common use; nearest
  place was Ramanakapetth.
• 3 coss from Noozeed in the vicinity of some fine large
  tanks, from which in favorable seasons a very sufficient
  quantity of water might be furnished to produce a
  very plentiful harvest of paddy.
• Much better buildings than Noozeed. The streets very
  broad, houses good and large.
• Famine of 1790-2 reduced the population from
  1,00,374 in 1786 to 57,865 at the end of 1793.
• Before the famine there were 40 smelting furnaces, a
  great number of silver and copper smiths, in a state of
  affluence; their survivors now poor, in a wretched
• Furnaces now reduced to ten.
• I maund, sold for 2 rupees this place, found eminently
  deserving of notice, in the event of adopting for any
  large works of this kind, in the Company’s possessions.
  The ore can be procured in any quantity, at a less
  expense than anywhere else. The nearest hills afford
  wood for coals in plenty; many people who would be
  glad to be employed in a business.
• Six more in the Noozeed country where iron is
  constantly fabricated.
             CENTRAL INDIA
    By Major James Franklin, Bengal Army, F.R.S, M.R.A.S., (1829)

• Opportunity afforded by the Government of
• Survey of districts of Jabalpur, Baragaon,
  Panna, Katola, and Sagur.
• 170 sers of ore, smelted by 140 of charcoal,
  produced 70 sers of crude iron in ten hours.
• Smelting furnaces, crude in appearance, very
  exact in their interior proportions.
• men ignorant of principle but construct them
  with precision.
• unit of measure breadth of a middle sized man's
  finger; 24 of which constitute their large and 20
  their small cubit; a constant ratio of 6 to 5
• it is of the least consequence that their
  dimensions are larger or smaller, so long as all the
  parts are in the same proportion.
• length of these measures on an average 19.20
  English inches for large cubit, 16 English inches
  for small one.
• As no standard measure, fingers, span and
  arm substituted by a piece of stick used in
• large one divided into six parts and small one
  into five, of four fingers each
• length of these parts on an average 3.20
  English inches.
• Geometrical Construction of the Furnace:
• Draw a line A.B. equal to a large
  cubit of 24 digits or 19.20 English
• divide it into 6 parts;
• at C erect a perpendicular.
• At C to E set off 6 parts, and it will
  mark the central point of the
  greatest bulge and consequently
  the point of greatest heat.
• From E set off 6 more points, and
  it will mark the point of cremation
• F to G, 6 parts more, will mark the
  line, where it is necessary to
  recharge the furnace, after the
  burden has sunk thus low.
• G to D-two parts more; will give
  the perpendicular height of the
  furnace, in 20 parts equal to 5 feet
  4 inches of English measure.
• To construct the interior, rule
  lines parallel to the base,
  through points E, F, G, and D,
  and from D. (fig 1) set off three
  parts to the left hand for the
• bisect it at J, bisect also the
  bottom at H.
• draw H, J, right angled at K, the
  oblique axis of the furnace (fig
  1. K-J) bisecting all the parallels
  corresponding with CD (fig 2).
• make the parallels AB six parts,-
  E six parts, F five parts, and D
  three parts.
• rule lines through all these
• geometrical outline will be
• Appendages-Gudaira, Pachar, Garrairi,
  and Akaira.
• Akaira most extraordinary implement.
  (Diagram I, figs 4 and 5; and Diagram II.
  fig 1+);
• externally a clumsy mass of clay
  enveloping the wind tubes (Diagram I.
  fig 9) the complete fusion of this mass,
  and the perfect completion of the
  smelting process must be simultaneous
• if it is too small, or too large, its effect
  will immediately be perceived; in the
  former case the masset of crude iron
  will be full of impurity, and in the latter
  the iron will be consumed, and if it
  cracks during the operation of smelting,
  no remedy-short of dismantling the
  furnace and commencing the work
                                                 Diagram II
• mean length 4-1/2 parts, breadth 3 parts, and
  mean thickness 1-1/2 parts
• exactly equal a twentieth part of the cubic
  content of furnace.
• Guddaira-wedge of clay used to adjust the
  vertical position of Akaira when placed in the
• Pachar an oblong plate of clay, used in walling up
  the orifice after the Akaira is placed,
• Gurairy (diagram I, fig 6) a convex plate of clay;
  perforated with holes and used as a grate.
• Made of a single goat skin, 7 parts in breadth
  when doubled, and 8 parts in length; for
  circular bellows of 5 parts diameter, rise 6
  parts in height- having 11-1/4 circular folds;
  the wooden nozzles through which the blast is
  conveyed into the furnace through Akaira.
                           Nozzle of the Bellows
• Geometrically-rule a line AB equal 3
  parts (Diagram III, fig 2).
• divide it into four, giving one of those
  divisions to each of the legs, and two for
  the space in the centre.
• set off a perpendicular from C to D equal
  3 parts.
• bisect it and the middle point will mark
  the apex of the central angle.
• through point D rule a line parallel to AB
  and from it as a centre set off each way
  3/4 of a part making together 1-1/2
• divide it also into four, giving one of each
  to the legs, and two for the space in the
  centre. Rule lines to connect all these
• Outline complete, the exterior of the
  implement is plain but the interior is           Diagram III
  complex (Diagram II: fig 3).
• fastened to the bellows by
  leathern thongs,
• blast forced through it at
  an angle of 24 degrees but
  when it is luted to the
  wind tubes of the Akaira,
  the blast enters the
  furnace at an angle of 12
  degrees, both vertically
  and horizontally-because
  those tubes are placed so
  as to reduce that angle
  (Diagram III fig 1 +)
•furnace closed up with clay, and
the bellows luted in, represented
in Diagram III and IV; the dotted
lines showing the chimney, A the
outer walls, B a mound of earth to
strengthen walls, C an upper
chimney of moveable bricks, D
planks laid across the trench to
support the bellows and the man
who works them, E a stone
supporting one end of the plank, F
fork branches supporting an iron
bar on which the other end of
planks rests, and G a simple
apparatus for preventing the
bellows from rising from the planks
when they are worked.
• “The angle of the blast is also worthy of
  notice, as well as the simplicity by which both
  it and the obliquity of the furnace is obtained;
  all these serve to show that the original plan
  of this singular furnace must have been the
  work of advanced intelligence, and that its
  geometrical proportions have been preserved
  by simple measures; hence though its original
  form may be changed by caprice or ignorance,
  its principle never can be lost so long as hands
  and fingers remain”.
• The refinery as crude in its
  appearance, and as novel in its
  construction as the furnace.
• Two refineries required for one
  smelting furnace.
• To construct-arrange a number of
  square un-burnt bricks, as in the
  ground plan (Diagram V, fig 1),
  a, a, a, a- the walls, C the seat of
  the refiner, D the anvil.
• Fig 2- a side view, A the chimney,
  B the refining furnace. E- piece of
  crude iron under the process of
• Dimensions of chimney- about
  one cubit broad, one deep and
  six in length.
• Fig. 3 a front view- showing the
  opening of the furnace.
• When the walls of the chimney finished- top covered with un-
  burnt bricks of an oval shape, flat below and convex above.
• Diagram VI - refinery complete, refiner at work on his seat,
  bellows-man plying the bellows, and various implements lying
  about, A the outside of the chimney, B a mound of earth to
  strengthen its wall, C the refining furnace, D a piece of crude
  iron undergoing the process of decarbonisation (the dotted
  showing the interior of the furnace

                                        Diagram VI
• Indian smelters use charcoal only.
• Ore- pieces about the size of a walnut.
• fill the chimney of the furnace with charcoal and burn
  until all moisture expelled.
• Then throw in small basket of ore, and a larger one of
• Allowed to sink as low as the line G (Diagram 1. fig 1
  and 2) when it is again charged.
• Ore and charcoal alternately given in the same
  proportions until the operation is complete;
• Scoria begin to flow within an hour, and by that time, it
  is known whether the furnace will work well or ill-the
  scoria being a sure indication; it is let out by piercing
  the grate with an iron spike, and the orifice is again
  closed with clay as soon as it is drawn off;
• Bellows worked by three men- by turns;
  constantly playing until the process completed.
• Time ascertained by introducing a hooked piece
  of iron through the wind tubes, into the
  furnace, which shows how much of the Akaira
• The appendage should be totally fused before
  the operation is complete.
• The metal never completely melted by this
  process-the heterogeneous mixture of the ore
  alone is fused and thrown off in scoria.
• Iron freed from it falls by its superior gravity to
  the bottom of the furnace, and coagulates
  into a mass;
• Bellows removed; front part of the furnace
  demolished; red hot mass dragged out,
  divided by large ades* before it has time to
  cool, the parts of the furnace thus broken up
  require daily renewal.
• Daily produce of four smelting furnaces,
  from the 30th April to 6 June 1827, most
  unfavourable portion of the year for
  smelting iron.
• Each furnace yielded upon an average
  about 18-1/2 Panchseri (5 sers) of crude
  metal which is 38% of the ore, every
  hundred sers of crude metal yielded 63 sers
  of malleable iron which yielded 56% when
  wrought up into bars fit for the use in the
  suspension bridge.
               QUALITY OF THE IRON

• Captain Presgrave of the Sagar Mint (an officer
  very capable of judging with regard to its
  quality) reported:

• “most excellent quality, possessing all the
  desirable properties of malleability, ductility at
  different temperatures and of tenacity for all
  of which cannot be surpassed by best Swedish
                         COST OF THE IRON
• Particulars                                   Cost (Rupee)
1. Excavation/mining                                   25
2. four smelting furnaces,                             30
two refineries, one small round furnace
3. Skins, for seven pairs circular bellows             25

Total                                                  80

• Experiment lasted only five weeks, above outlay
  calculated to last a whole season, so a portion of it is only
  chargeable to the cost of iron.
• Hammers, anvils and other implement of iron, not being
  perishable- chargeable only for reasonable repairs.
• Thus proper proportions of outlay is 15 rupees
                                Working Expenses
6 men for each smelting furnace or 24 for 4 furnace
from 30th April to 6th June, or 1-1/4 month at 4 Rs. Each per mensen     105
Charcoal for the furnace for the same period                             115
For digging ore                                                           15
Carriage of ore                                                           15
Carriage of charcoal                                                      15
Head-man                                                                   5
Total Cost of smelting                                                   270

One Mistry at Rs. 8 and five lohars at Rs. 4 per mensen for
each refinery: this sum doubled for two and for a period of 5 weeks is    63

Teakwood charcoal for the refineries                                      53
Head man                                                                  4

Total cost of refining                                                   120
Total cost of smelting                                                   270
Total expenses                                                           390

225 maunds of malleable iron produced, one rupee 12 annas per maund.
  By Captain J. Campbell, Assistant Surveyor General. Madras
                  Establishment. (A.D. 1842).

• In the commerce between India and England, a source
  of deep injury to the former country arises from
  England having deprived her of the trade in cotton
  cloth, the manufacture of which was, but a few years
  ago, one of the most valuable and extensive of Indian
  products; while from no other having been as yet
  introduced as an export to balance the imports from
• Among the most extensive of the exports of England to
  India, is the trade of bar iron, which to Madras alone
  amounts to 1,000 tons per annum; and while India is
  known to produce malleable iron of a superior quality,
• Informed by Captain Drummond, in journal of the Asiatic
  Society of Bengal, that carriage of suspension bridge
  erected in Kernnon, alone cost about 80 rupees per ton, or
  as much as the iron might have been made for upon the
• because English mode of manufacturing iron has been
  found to be most profitable in England, it has been
  supposed that similar process could answer in India.
• This process has also been styled 'scientific', but principles
  of the mode of operation are still unknown and the
  manufactures are unable to produce at pleasure a certain
• Quantities of the results produced depend upon the
  weather, and other causes as yet not explained, or beyond
  the control of the workmen.
• We do not as yet even know what cast iron is; nor with any
  certainty what its component parts are; nor in what it
  differs from steel, or the varieties of what are generally
  called carburets of iron.
• Such being the state of our present Knowledge
  of this subject, it may be doubted if a careful
  examination of the principles of the long
  established, cheap, and simple mode of
  manufacture of the native of India, might not
  lead to improvements and modifications,
  which would be found to answer better, than
  the operose methods of the English
  manufacture, which require much capital,
  costly building, Land, a considerable trade to
  make them profitable.
• In England the fuel most generally used in smelting the
  impure iron ores of the coal fields is coke.
• Ore after being first roasted to separate the volatile
  impurities, as much as possible, is exposed to its action
  in blast furnaces.
• Generally about forty-five feet in height, but varying
  sometimes from thirty-six feet to even sixty feet.
• In middle, furnaces are about twelve feet in diameter,
  at top contracted to about four feet, at bottom, where
  the blast of air is introduced by pipes from powerful
  blowing machines, the diameter is only about two feet.
• The pressure upon the air forced into the furnace is
  about three pounds upon the square inch, and the
  quantity of air amounts generally to as much as 4,000
  cubic feet per minute.
• The cast iron as it forms, falls down into the bottom of the
  furnace; which is always hot enough to maintain it in a state of
  fusion; where it is protected from the action of the blast by a
  covering of fused slag which floats upon it.
• These furnaces are kept in action unremittingly, night and day,
  for several years together; the metal being allowed to flow out
  every twelve hours in quantities of about six tons at a time.
• The material used in building the blast furnace is principally fire
  brick, and a pair of furnaces cost upwards of £1,800 sterling.
• The proportion of coal used in making a ton of cast iron, varies
  very much, from three tons in Wales, to sometimes eight tons
  in Derbyshire.
• But the use of heated air in blowing the furnaces has very much
  increased the quantity of the products of the blast furnace, and
  has also diminished the expenditure of fuel, but the quality of
  the cast iron is said to be deteriorated.
• The estimated expense of making a ton of cast iron is about £3
• For converting cast iron into bar iron, the first process
  generally employed in England is called 'refining', and
  consists in fusing about a ton of cast iron at once in flat
  open furnaces about three feet square, where it is
  exposed for two hours or more to the action of a
  strong blast, by which it is supposed a portion of the
  carbon it contains is burnt off.
• Much gas escapes from the surface of the metal during
  the operation, and a large quantity of black bubbly slag
  separates, after which the metal when run out and
  allowed to cool, has a white silvery appearance, is full
  of bubbles, is very brittle, and has acquired the
  property of hardening by being suddenly cooled. In
  'refining' about four or five hundredweight of coals is
  used to the ton cast iron, and the metal loses from
  twelve to seventeen per cent; of its weight.
• The 'refined' cast iron, now termed 'fine metal', is then
  exposed in a reverberatory furnace, called 'puddling
  furnace’ to the action of the flame of a large coal fire, by
  which it is first partially melted, then falls into a coarse
  powder; and on being stirred up and presented to the
  flame, becomes at last adhesive and tenacious.
• It is then formed into large balls, and after receiving a few
  blows from a large hammer to consolidate it, is passed
  between rollers which squeeze out much of the impurities,
  and form it into 'mill bar iron'.
• This is however too impure for use, and it is necessary to
  cut the rough bars into pieces and to weld them together
  afresh, in a 'reheating furnace', and expose them to
  another rolling, and even to repeat the operation a third
  time, before good tough bar iron is produced.
• In the 'puddling furnace' about a ton of coals is expended
  to each ton of 'fine metal', and in the 'reheating furnace',
  about 150 pounds more are expended; and in each
  operation a loss of about ten per cent takes place in the
  weight of metal operated upon.
• Upon an average about nine tons of coal are expended
  in England in forming one ton of finished bar iron, and
  it is probable, that if the above processes were
  attempted upon any smaller scale than that of the
  English works, a still greater quantity would be used.
  Some of these works cost £27,000, and turn out 120
  tons of iron per week.
• The mode of smelting iron used by the natives of India
  appears to be very much the same from the Himalayas
  down to Cape Comorin.
• The material used for the native furnaces, is the
  common red potter’s clay of India, which carefully
  selected, sufficient to fuse cast iron, but by mixing it
  with sand, and by concentrating the heat in the centre
  of the furnace as much as possible by a projecting blast
  pipe, the reduction of the ore is effected before the
  furnace has become much more than red hot; the
  operation being completed in about a couple of hours
                  Josiah’s Adventure
• Josiah Marshall heath resigned from the East India
  company in 1825 to set up an Iron and Steel Works in
  India. In barest terms: a British firm in Calcutta,
  presumably, a house of agency, advanced him a loan; he
  spent four years in England gathering technical
  information and came back with equipments and workers
  to erect his works in 1830 at Porto Novo in Salem region. It
  was about a ton per day unit with 2 large and 2 small
  furnaces producing bar iron so produced received
  approbation even in England. Josiah ran out of money; the
  Government of east India company gave him Rs 1 lakh
  desired and 25 years exclusive right as was given by the
  British parliament to Bulton and Watt of England; but
  there was difficulty using charcoal as fuel- 12 unsuccessful
  trial runs were made. Again he was in financial troubles
  and the Porto Novo works virtually came to an end by the
  middle of the nineteenth century.
Ref- Man & Development, 1980, Indigenous Science
  & Technology in India Authored by Dr. U. Trivedi
• The works did not terminate because the
  financier foreclosed on debts or due to risk
  because of technical difficulties; the works
  continued for 20 years, the expected life of the
  plant and equipments; other works came up in
  1839 at Barker, Bengal, and another in 1855 at
  Raniganj-both undoubtedly based on coal.
• Around 1830, East India company not only
  financed an Iron and Steel Works, further they
  paid Josiah the highest complement of analogy
  with Boultan and Watt.
• James Watt was of an indigent family, an artisan
  instrument maker and an avid collaborator and
  supplier of researches of Joseph black in the
  Science of heat quantifies. Boultan was relatively
  petty entrepreneur-owner of a machine shop
  noted for precision jobs.
• Boultan and watt even as they struggled and
  innovated dreamt of the world as market for their
  steam-engine and the Birmingham works in the
  18th century were famous as the Science School
  of Soho.
• James watt and Joseph Black became symbols of
  emulation for the mechanics and artisans flocking
  to the mechanics institute during the period
  when Josiah was in England surely Josiah must
  have been moved as he visited the iron works of
• There is a document dated 1841, authored by J. Campbell,
  titled ‘Public Consultations. Madras Records-Indian Iron &
  Steel Company of Porto Novo Weekly. This document
  contains story of Josiah.
• Why did Josiah venture into iron and steel works? Why did
  he chose Salem, and then port? Why did he choose
  charcoal? And Why did not the works grow into a
  movement despite apparent support?
• In the 19th century in the region of Salem there were
  indigenous ironsmiths producing bar iron, using charcoal,
  using furnaces built by them out of red potter’s clay and
• The bar iron of these virtually cottage industries here
  cheaper than the cheapest bar iron imported from England;
  the worst in quality was equal to the quality of England.
  Indian iron was preferred by British for producing steel of
  good quality.
• Josiah must have compared and concluded that charcoal
  was for India the cheapest fuel.
• Josiah must have gone through the economics
  of the processes and concluded that the
  product from larger furnaces of England
  would be cheaper but the high transport cost
  reduced its competitive quality in the Indian
• He might have foreseen the prospect of
  reduced shipping cost by steam vessels
  touching Indian in 1821.
• The other answer-growth and dynamism.
• Ready made distribution channels and extant users, the
  internal market to be taken over to generate the
  profits, to create the fabrication works on Indian soil,
  to absorb the scattered iron smelters and blacksmiths
  of Salem into new form of industry-to create the
  Liebig’s and Lyon Plafair’s to scientifically the
  efficiencies of blast furnaces to improve upon them-to
  create on soils of India at the work at the Salem the
  Science School of Soho? Visionary? Yes!
• Had not Josiah faced bankruptcy and faced bankruptcy,
  and persisted in 12 costly unsuccessful trial runs in his
  attempt to use the indigenously available charcoal and
  overcome these difficulties, perhaps through his
  doggedness of purpose, perhaps by employing the
  indigenous species growing wild-the first ever example
  of indigenous RDD on process industry.
• His initiative did not multiply and grow, his vision
  did not take on the hue of tangible reality.
• The postulated internal market was not seized, nor
  did the new mode of production take root.
• Had the times changed since 1825-undoubtly yes.
  Had the merchant distributors, descendant of the
  Shreshthis. Not cooperated, did they take fright at
  this new mode of industrial production seeking to
  organize the scattered divided smelter into forms of
  organization and knowledge which meant the end
  of their old age dominance as merchants over the
• did the smelters not came forth, or were they
  shackled by their bondages to the merchants
  distributors and unable to break a hold that
  tradition had forged.
• And by same token was the supply of ore and
  charcoal subject to hazards? The merchants
  distributors did not rise to challenge the
  English competition by the only tried and true
  means-Advancement of production, the
  creation of indigenous technology or
  invention. The social distances were too great
  unbridgeable to indigenously achieve this.
• It was less disturbing to retain their
  dominance as merchant distributors and more
  profitable distributing the imported English
  steel. For this involved only the extinction of
  indigenous iron smelter of Salem of India
• In 1875 the Bengal iron company had come into being
  to meet the needs of railways for components
  frequently required-wars had confirmed their necessity
• However in 1881 the point had yet to be grasped, the
  Iron Works was in financial trouble-lack of demand.
“The shareholders have asked the government.......or
  assist the present company with money or certain
  concessions as the purchase of Government stores. It is
  pity that a new industry of this kind should be ruined
  for want of a little capital, and the government might
  be little more liberal in interpreting the phrase,
  ‘development of the resources of the country”
• In 1882 the government took it over and seven years
  later sold it to Martin & Co., to become the Bengal Iron
  and Steel Co.
• By 1907 the issue was clear; permission was
  given by the government for yet another steel
  plant, and that too under Indian ownership; war
  was in the air.
• In 1910 the construction of the iron and steel was
  well in advance. It was reported:
“The success of the undertaking will be of great
  importance to Bengal and to India. The
  government of India has recognized this fact in a
  practical manner by agreeing to purchase
  annually from the company for a minimum
  period of 10 years, at least 20,000 tonnes of steel
  rail subject to government specifications being
  complied with the prices comparing favourably
  with the rates at which similar rails could be
  delivered if imported into India”.
• And in 1912, Ratan J. Tata reported success:
“The company's big iron has secured a world
  wide reputation and repeated orders are
  coming ion from Japan, where the products
  has found a large and unexpected market”.
             The Sugar Refinery
• Established at Aska, a small estate in Orissa not
  far from GopaIpur on sea.
• In the 1840s a house of agency of Madras, its
  constituent partners, their London agents and a
  London importer with long contacts with the
  house of agency, invested their money to set up
  the Aska sugar refinery.
• The Aska refinery was built around the 'most-up-
  to-date machinery imported in the 1850s from
  the well known firm of Glasgow.
• The quality of the sugar was good, and yet "the
  Aska concern seemed perpetually in trouble”
• One learns that 'keeping down the native debts'
  was not working, the debt piled up.
• The money advanced ‘to a contractor to assist in
  the cultivation of cane' did not imply that the
  contractor would supply the jaggery to the Aska
  concern for refining into white sugar.
• He sold the jaggery to others.
• Nor did the Madras Board of Revenue permit the
  sale of the land of the contractor-obviously a land
  owner-to realize the debts.
• What is noteworthy also is that the Aska unit was
  not an integrated one buying cane for crushing
  and processing.
• It was only a step in the processing chain,
  buying jaggery for refining into white sugar.
  Obviously without assured supplies, the Aska
  unit would have idle capacity and be
  ‘perpetually in trouble'.
• One may well ask: Why did not the land
  owning contractor not honour the contract by
  supplying jaggery? Who was the other buyer
  of jaggery? What compelled the landowner to
  break his contract and sell to another?
• Who was the other buyer? Sugar had been an
  item of export to Asian countries long before
  the British arrived-well established traditional
  channels already existed.
• The peasant would cultivate the cane, do
  bullock-powered crushing on the field and the
  juice was converted on the field or near it to
  gur or jaggery with baggasse as fuel.
• The jaggery was consumed locally, and the
  surplus sent on to a manufactory for
  processing into the khand, and from whence
  on to export through trade networks up to the
  port and on the ship thereon.
• The jaggery unit was perhaps owned by a richer
  peasant in Ryotwari areas, or by a zamindar or by
  the manufactory owner, a merchant/money-
• To the manufactory owner, and the merchant
  network the export of unrefined sugar by the
  British may have meant merely the substitution
  of one exporting community by another on
  whom the taboo of sea travel did not apply-there
  was no further basic change in internal
• But in the case of white sugar refinery, the case
  was different, not only did the product have
  greater commercial significance by virtue of its
  longer shelf-life, the refinery was jeopardizing the
  existence of the merchant-moneylender himself.
• The Madras Board of Revenue baulked at what
  should have been a reasonable request; the
  peasant had to pay his cash land tax, the
  merchant-moneylender was crucial for buying up
  the cash crops and supplying to the port
  merchants for export, and in the reverse for
  distribution of imports.
• Clearly the Board of Revenue would not be a
  party to the dismantling of this mercantile
• Nor would the merchant-moneylender be a party
  to his own extinction.
• Sugar to the peasant would be only one of the
  crops, with jaggery-making a seasonal side-line
  activity only.
• The merchant-moneylender boycott of his
  crops spelled the peasants extinction.
• The merchant-moneylender must certainly
  have exercised, or threatened this dire
  consequence bringing the break away peasant
  into line, compelling him to sell the jaggery to
  the merchant-moneylender, as observed.
• One of the options was to ensure through an
  attached sugarcane plantation.
• Under European ownership, or that of the
  refineries –and this was what appears to have
  been done around 1856 when a name to conjure
  with in the ‘Indian Planting world’ was inducted
  to operate the refinery.
• There were other solutions to be applied almost
  80 years later. Imported integrated sugar factories
  owned by the higher echelons of the native
  merchant-money lending network, assisted by
  legislation banning gur and jaggery production of
  supply areas, and additional measures to ensure
  supplies from the peasant farmers.
• The indigenous manufactories in particular were
  to extinguish thereby, gur for obvious reasons
  was not easy to be rendered extinct.
               The Indian Genius
• There was one Mohsin Hussain, an Indian artisan,
  working in the region of Arcot in 1830.
• George Everest came back from England in 1830 as
  Surveyor-General and brought with him the most up-
  to-date Instruments and a skilled mechanic of London,
  Heavy Barrow, as the mathematical-instruments maker.
• Everest also came across and engaged Mohsin Hussain
  who proved his mettle in mechanical repairs and
  adjustments, and the reconstruction of old
• Mohsin Hussain had impressed Everest as a
  ‘remarkable mechanic with inventive talents' ,Everest
  said: 'He has both genius and originality".
• When Barrow left, Everest appointed Mohsin Hussain as
  the ‘Mathematical instrument maker at Calcutta',
  Undoubtedly, Mohsin Hussain, the mechanic-artisan,
  must have had with his practical approach dismantled
  the imported instruments, studied their working,
  repaired them, fabricated components, reassembled
  them and proceeded to fabricate instruments on his
  own-his genius and originality and empirical
  inventiveness giving rise to improvements in this
• Did Mohsin Hussain have the opportunity to benefit by
  the 'introduction of the principles of mechanics and their
• Was Mohsin Hussain enabled to grasp the cognitive and
  theoretical aspects embodied in these instruments, the,
  basis for the spring to the next generation of
  instruments? An affirmative answer seems doubtful.
• George Everest had also engaged eight- native
  computers -incidentally, computers then, and
  even till recently, referred to a labour intensive
  operation by persons skilled in routine
  manipulations of established formulae and
  detailed calculation.
• One was Radhanath Sikdar: 'a hardy, energetic
  young man who received an exceedingly good
  education in mathematics at the Hindu College ...
  as a computer he is quite indefatigable ... so
  thoroughly skilful in the application of various
  formulae, a convincing proof that the aptitude of
  your country man for the practical, as well as the
  theoretical parts of mathematics, is no wise
  inferior to that of Europeans'. Well said’’.
• Did Hussain and Sikdar have opportunity to meet,
  to sit together, to dream, dream of making
  instruments, designing instruments, advancing
  instrumentation? Did, theory and practice do
  cognitive and practical invention synapse to
  create technology and dynamic production.
• Be it as it may, what is of equal significance is that
  the advance of technique in England was within
  the ability of Mohsin Hussain, artisan of India, to
  absorb, to make his own. Not too different from
  the master artisans who were fuelling an
  industrial revolution in the northern states of
  USA, in France and on the continent.
      East India Company- Craving for Independence
• Though wars with the Portuguese, the Dutch, and the French,
  the British East India Company had gained a monopoly over the
  exports of Indian manufactures to Europe, a monopoly which
  then excluded Britain free merchants even.
• For a handful of English traders to maximize their profits on the
  basis of the exports of Indian manufactures, it was inevitable to
  have at their command a network of native merchants to
  collect and supply the necessary good for export.
• To this end, in the context of extant techno-economic
  development, it was necessary to gain territorial and political
  control, which Clive proceeded to do.
• One reads of Mir Jafar, but seldom ever of Jagat Seth and his
  like. Seths-the descendants of Shresthis of Buddhist and pre-
  Buddhist times, the merchants who financed Clive.
• The British recruited the peasants of Oudh as sepoys, equipped
  them with superior military organization, weapons and officers,
  and with them went about the task of destroying the Indian
  feudal structure.
• The defeat of Siraj-ud-daulah looms large in the pages
  of history, and the native merchants collaboration
  seldom if ever, presumably because they never had
  political power; nor were they to do so except as,
  ancillaries to the East India Company.
• Under Warren Hastings the virtual supervisor of land
  revenue collection was one moneylender, Ganga
  Govind Singh.
• In 1785, Edmund Burke, in his opening fusillade against
  Warren Hastings, on the Nawab of Arcot's debts
  presented accounts with Interest turned into principal,
  of principal superadded to principal, and the detailed
  technicalities of gomastahs and soucars, the native
• With the acquisition of territory by the British' the
  collaborating native merchants became land revenue
  collectors and some in due course landlords
• Verelst, who briefly succeeded Clive, in 1767
  noted: The immense commerce of Bengal might
  be considered as the central point to which all
  the riches were attracted. Its manufactures find
  their way to the remotest parts of Hindustan.
• Internal trade was to be wrenched for export,
  many a merchant rendered bankrupt in the
  process; the peasants subject to payment of tax
  in cash had to produce what could be sold to the
  merchants, native or foreign, for cash, for
  manufacture, for export.
• Clive in 1765 stated: 'It is scarcely hyperbole to
  say that....the whole Moghul empire is in our
  power'-but today power had to be consolidated.
Taking 1000 as total gross produce form agriculture and manufactures,
in 1750, Dharampal estimates the several allocation as follows:
                           Tax structure in India
                                                          Before EIC      After EIC
 1.     Actual producers                                  700             350
 2.     Religious, cultural and Educational Institution
        and Individuals                                   100 of which,   15
        a) Exclusively Religious                          40
        b) Cultural                                       40
        c) Educational                                    20
 3.     Economics services and Police                     75 of which,    20
        a) Economic services                              60
        b) Police                                         15
 4.     Militia and Political Aristocracy                 75 of which,    25
        a) Militia                                        60
        b) Aristocracy                                    15
 5.     Central Authority                                 50              590
 6.     Grand Total                                       1000            1000
                  Diwani and After
• In 1759 Clive had written to the Elder Pitt suggesting the
  acquisition of Bengal in full sovereignty by the English
  nation-the revenue was stated to be attractive.
• In 1765 as part of the process of consolidation Clive
  obtained the Diwani of Bengal, Bihar and Orissa from the
  shadow Emperor at Delhi, along with the districts of Kora
  and Allahabad.
• The Diwani gave legitimacy Additionally, 'in 1767 began the
  practice of making what were called Investments', that is of
  employing a large portion of the surplus public revenue
  collected from the province in buying goods, raw produce
  and manufactures, for exportation to Europe'.
• The well known plunder of Bengal Was contributing to
  some would say responsible for the Industrial Revolution
  gaining momentum in Britain. The imported manufactures,
  of India were competing with, and impeding the rise of
  Industrial capital in Britain.
• In 1762 the British Parliament had reiterated their non
  interference in the legal and exclusive property of the East
  India Company, a body corporate.
• In early 1765, the body corporate took a position that their
  possessions were held in virtue of grant from the Delhi
  Emperor, in the nature of offices and jurisdictions
  dependent on his Crown a very anomalous species of
  power and property quite unknown to the ancient
  constitution of England in the words of-Burke.
• The latter observed that thus far the East India Company
  had negotiated the renewal of their charter with the British
  Government in a spirit of equality.
• In maintaining this doctrine they acted on the advice of
  Lord Clive who had acquired the Diwani but who also
  nevertheless still affirmed that the declaration of political
  independence would be very far from expedient. Perhaps,
  the reason was that the Company needed time for
  consolidating and stabilising its position in India gained so
  recently and so rapidly.
• But what is startling and of greater importance is
  the possibility of political independence thought
  of by the Hon'ble John Merchant.
• This was perhaps a reason for such sentiments;
  the North Americans were preparing for a Tea
  Party from which they were to give birth to a
  declaration legitimizing theirs, and also other's
  political evolutions against tyrannical authority.
• The Revolution of 1776 crystallized the dangerous
  ideologies abroad in France and which were to
  explode once again with devastating force in
  1789 with the storming of the Bastille, and 1793
  ushering in an another age in Europe
• One learns:
.... in 1785, when he (Warren Hastings) was just leaving
    Bengal, the French ambassador in London seriously
    proposed to his government a plan of secretly
    encouraging Hastings to make himself an independent
    ruler in India by means of his native army and of French
    support. The ambassador, having evidently in his mind
    the success with which France had abetted the revolt of
    the American colonists, argued confidently that a man
    who held in India 'almost a royal position’ who had
    been recalled with indignity, and was threatened with
    impeachment would be found easily accessible to such
• In 1793 war between France and England was
    declared, French possessions in India were seized by
    lord Cornwallis; in 1799 Napoleon Bonaparte had
    written to Tipu sultan from Cairo.
• Should John Company become independent merchant
  Sovereign of India with its production base competing
  against the mother country and its rising industrial capital
  in dire need of expanding captive and secure markets?
  Almost a century and a half later Montagu and Chelmsford
  were to refer to this period in the following terse terms:

"At first the Company's settlers were responsible only to the
  Directors, who derived their powers of control from
  Charters given them by the Crown.... But when, the Battle
  of Plassey compelled the company to assume the task of
  reconstructing Bengal, the astonishing position was created
  that a few commercial agents were handling the revenues
  of a kingdom in the name of an emperor (Moghul) the
  Company was emerging as the strongest power in the land
  made Parliament resolve to strengthen its
  control.....resolutions were carried requiring the recall of
  Warren Hastings and the closer definition of the Governor-
  General's powers. The Directors defied the Parliament and
  retained Hastings. Fox introduced his Bill.... "
• It is in the above political-economic context that
  one has to view the developments in the related
  field of endeavour
• Governor General Warren Hasting in 1781 started
  the Madrassa at Calcutta, interestingly at first at
  his own expense and later charged to the
• This individual initiative was to secure well
  qualified officers for the Court of Justice versed in
  Arabic and Persian tongues and Muhammadan
  Law. The Company with its- authority derived
  from the Diwani had retained the administrative
  judicial machinery.
• The Court of Justice was the creation of Lord
  North’s Parliament at odds with Warren Hastings.
• Was Warren Hastings at the Court of Justice deriving
  authority from native customs, practices, and
  legislative authority?
• In 1791 Jonarhan Duncan, Resident at Benares, even
  after the departure of Hasting was to start the Benares
  Sanskrit Pathsala which apart from theology,
  philosophy, music, grammar, literature, law, and
  history, was to teach medicine, mathematics,
  mechanics and arts to natives in their own tongue.
                   Asiatic Society
• On 15 January 1784, a year prior to Warren Hasting's
  return and two years before the arrival of Lord
  Cornwallis. 'The Asiatic" Society' was born as a
  consequence of 30 European intellectuals coming
  together in Calcutta.
• The meeting was presided over by a Robert Charles more
  importantly a second judge, of the Supreme Court, and was the
  brain child of yet another judge, William Jones. In the words of
  William Jones: -

"You will investigate whatever is rare in the stupendous fabric of
   nature, will correct the geography of Asia by new observations
   and discoveries, will trace the animals and even traditions of
   these nations, who from time to time have peopled or desolated
   it; and will bring to light their various forms of government, with
   their institutions,' civil and religious; and you will examine their
   improvements and methods in arithmetic and geometry, in
   trigonometry, mensuration, mechanics, politics, astronomy and
   general physics; their skill in surgery and medicine and their
   advancement in anatomy and chemistry. To this end you will add
   researches into their music architecture, painting and pottery,
   you will not neglect those inferior arts by which comforts, and
   even elegances of social life, are supplied for improved.
• The reference to 'inferior arts' may be noted;
  surely the gentlemen-if not all, then William
  Jones himself-would have had little to do with the
  application of principles of mechanics to the,
  devising of mechanical contrivances, or the
  application of natural philosophy to the methods
  of production.
• Yet what is one to make of this wide diversity and
  range of intererts reminiscent of the 'universal
  man' of the European Renaissance?
• To what end the enquiry into the traditions, the
  various forms of government?
• Would the experience of the practical utility of
  these to the administering of the Diwani have
  provided the stimulus:
• Did the expansion along the Ganges into the
  Deccan supply the impetus to gain knowledge of
  the various nations so revealed?
• And to what end the investigations into the
  science and techniques of production of these
• Mere records of anti-quaries and gentlemen
• Or more towards gaining knowledge of the
  resources and manufactures of India, and their
  subsequent control and/or utilization towards
  commercial ends ?
• Would the precedents under Clive and Hastings
  provide a clue towards political-economic power
  derived from and of the Indian soil?
               David Hare-The Orientalist
• There was a member of the society who was a practitioner of,
  the Inferior arts, David Hare-a watch-maker and a
• Under his impetus two committees were formed, one for
  natural history, physics, medicine, improvement of arts, and
  whatever is comprehended in the general term of physics and
  other on literature.
• In 1808 David hare was 33 years of age; he died in 1842 of
  cholera at the age of 67:
" the intense grief of all Bengal. For in that almost
  unlettered watch-maker the country lost its ‘Father of
  Education'. No man, native or alien, has ever before or since
  been so truly mourned with demonstrations loud yet deep. High
  caste Hindus who unceremoniously free from even a dead
  relation as from a dangerous stinking pollution, bore with
  loving alacrity the corpse of this poor 'Mlechha' mechanic to
  touch the feet of the dead. Briton, in the teeth of Manu and all
  the 'makers of Sastras and against the frowns of all the three
  hundred and thirty millions of the Hindu patheon....”
                     The Anglicist
• In 1793, through the Act of permanent settlement, Lord
  Cornwallis had created a new class of Indians.

• In 1799, Joshua Marshman and William Ward, (joined in
   1800 by William Carey), arrived at Serampore then a Danish
   possession-the British East India Company discouraged
   missionaries in its territories. Marshman was to preach, and
   Ward was to print the Bible, all in the language of the
   natives-Bengali. The mission was poor instructions in
   English were, combined with preaching in Bengali, around
   1810 :
"Indians and, particularly Bengalis, were intensely curious to
   learn English and qualify themselves in foreign arts. As the
   sons of leading zemindars and rich merchants could not
   obtain the schooling they wanted they went to the
   missionaries at Serampore ... It is on record that sometimes
   a rich Bengali would pay Carey, Marshman, and Ward as
   much as £ 400 a month for tuition.
          The Orientalist Vs Anglicists
• The act of 1813, renewing the charter marked further
  concessions, but limited by the still powerful East India
  company represented by Warren Hasting, Sir John and
• British merchants and missionaries were permitted but
  under licence issued by the company’ director, or on
  their refusal by the Board of Control, but the governor-
  general and the local government additional had the
  power to revoke the licenses.
• The Act of 1813 significantly created a fund (not less
  than Rs. 1 lakh) for the revival and improvement of
  literature, and the encouragement of the learned
  natives of India, and for the introduction and
  promotion of knowledge of their sciences among the
  inhabitants of the British territories of India.
• The funds were to be apportioned from the net
  surplus remaining after defraying the expenditure
  on military, civil and commercial establishments,
  and payment of interest on debts-so much for
• One learns that for the next 20 years the funds so
  created were unexpended. The so-called
  controversy between Orientalists and Anglicist
  was waged with vigour.
• Revival and improvement on the one hand and
  introduction and promotion on the other
  represented the ambivalent balance of forces.
                  College Founded
• The Sundry Rajas, creations of Lord Cornwallis, raised
  over a lakh of rupees to found in 1817 what was to be
  known as the Hindu College for promotion of Anglicist
• In the company of the Rajas were British sympathizers’
  including-David Hare, Till 1824, it, continued under joint
  management of Indians and Europeans.
• In 1823, the funds earmarked under the Act of 1813
  were to be disbursed by an official committee with H.
  H, Wilson, the oriental scholar, as its Secretary.
• In 1824, the Sanskrit College at Calcutta was created by
  the government.
• The Rajas protested, and disapproval was voiced in
• A Raja, more known for his promotion of
  mysticism, and of comparative religions voiced
  the petition of the Rajas to Lord Amherst. The

"Humbly reluctant as the natives of India are to
  obtrude upon the notice of government the
  sentiments they entertain on public measure,
  there are circumstances when silence would be
  carrying this respectful feeling to culpable excess.
  The present rulers of India, coming from a
  distance of many thousand miles, to govern a
  people whose language, literature, manners,
  customs, and ideas are almost entirely new and
  strange to them, cannot become so intimately
  acquainted with their real circumstances as the
  natives of the country are themselves........”.
• The argument was to become a classic one,
  furthermore :
"When this seminary of learning (Sanskrit College)
  was proposed, we understood that the
  government in England had ordered a
  considerable sum of money to be annually
  devoted to the instruction of its Indian subjects.
  We were filled with sanguine hopes that this sum-
  would be laid out in employing European
  gentlemen of talents and education to instruct
  the natives of India in mathematics, natural
  philosophy, chemistry, anatomy and other useful
  sciences, which the nations of Europe have
  carried to a degree of perfection that has raised
  them above the habitants of other parts of the
• What did the good "Raja mean?
• Did the 'good Raja seriously believe that the
  government in England would permit 'the
  subject natives of India to gain perfection in a
  mode of knowledge and techniques which had
  enabled Europe to rise to world supremacy?
• Would the government in England permit such
  a rise to supremacy of a nation to be
  subjected, and not to be nurtured to challenge
  the manufactures, of Britain in the world
• Perhaps what the Raja had in mind is revealed in the
   Charter of 1833:
"that no native of the said territories, nor any natural
   born subject of His Majesty resident therein, shall by
   reason only of his religion, place of birth, descent,
   colour, or any of them, be disabled from holding any
   place, or employment in the said Company".

• Thomas Babington Macaulay who had piloted and
  defended the Act of 1833, arrived in India as the law
  Member of Govt of India in 1834. main Mission-
  Formulation of Indian Panel code-but better known
  today as chairman of General Committee of Public
  Instruction for bringing English education-even more
  for demolishing “native education”, which was
  managing to survive somehow with no state support
  even after 75 years of colonial rule.
• He was to state:
"that we ought to employ them (funds) in teaching
   what is best worth knowing that natives are desirous
   to be taught English, and are not desirous to be
   taught-Sanskrit or Arabic;.....that it is possible to
   make the natives of this country thoroughly good
   English scholars, and that to this end our efforts
   ought to be directed."
• Macaulay Observed:
“I have never found one amongst them who could deny
   that a single shelf of good European library was
   worth the whole native literature of India and
   Arabia. The intrinsic superiority of the western
   literature is indeed fully admitted by those members
   of the committee [of public instructions] who
   support the oriental plan of education.”
                    Education in India
• Schools at that point of Time- report of William Adams (1835)
• Indigenous elementary school by this description are meant
  those schools in which instruction in the elements of
  knowledge is communicated, and which have originated and
  are supported by natives themselves, in contradiction from
  those that are supported by religious or philanthropic
• The number of such schools in Bengal is supposed to be very
• A distinguished member of general committee of public
  instruction in a Minute of the subject expressed the opinion
  that if one rupee per month were expanded on each existing
  village school, including the private houses where instruction
  is given in the lower provinces, the amount would probably
  fall short of 12 lakh of rupees per annum.
• This supposes that there are 100000 such
  schools in Bengal and Bihar and assuming the
  population of those two provinces to be
  4,00,00,000 there will be a village school for
  very 400 persons.
• Macaulay described this opinion of the
  members (Macnaughten, James and H.T.
  Princep) as “misconceived Notions” that
  perhaps a fraction of the money allotted for
  education could be used to support the
  “native education” and also that English
  would not be all that suitable for educating
  the natives of India.
• And then he added:
“It will hardly be disrupted, I suppose, that the department
   of literature in which the Eastern writers stand highest is
   poetry. And I certainly never met with any orientalist who
   ventured to maintain that Arabic and Sanskrit poetry
   could be compared to that of the great European nations.
   But when we pass from works of imagination to works in
   which facts are recorded and general principles
   investigated. The superiority of the Europeans becomes
   absolutely immeasurable. It is, I believe no exaggeration
   to say that all the historical information which has been
   collected from all the books written in the Sanskrit
   language is less valuable than what may be found in the
   most paltry abridgement used at preparatory schools in
   England. In every branch of physical or moral philosophy
   the relative position of the two nations is nearly the
• Concluding, Macaulay refused to associate himself with any support of
    assistance to Indian learning and declaimed;
“If on the other hand, it be the opinion of the government that the present
    system ought to remain unchanged, I beg that I may be permitted to retire
    from the chair of the committee. I feel that I could not be of the smallest use
    to them I feel also that I should be lending my countenance to what I firmly
    believe, to be a mere delusion. I believe that the present system tends not to
    accelerate the progress of truth but to delay the natural death of expiring
    errors. I conceive that we have at present no right to the respect able name
    of a board of Public money, for printing books which are of less value than
    the paper on which they are printed was while it was blank, for giving
    artificial encouragement to absurd history, absurd metaphysics, absurd
    physics, absurd theology, for raising up a breed of scholars who find their
    scholarship an encumbrance and a blemish, who live on the public while they
    are receiving their education, and whose education is so utterly useless to
    them that, when they have received it, they must either starve or live on the
    public all the rest of their lives, entertaining these opinions I am naturally
    desirous to decline all share in the responsibility of a body which, unless it
    alters its whole mode of proceedings I must consider not merely as useless,
    but as positively noxious”.
• Remarks, observations, threats and declamations,
  like those quoted above, have shaped all the
  writing and teaching about India, and more or
  less continue to do so, in the manner and
  direction indicated by Macaulay and by his more
  powerful precursors like William Wilberforce and
  James Mill.
• Ignorance, apathy and utter mental confusion,
  particularly about life and society in the
  eighteenth century not only in India but in the
  West Europe itself, are the natural products of
  such writings and teachings.
• Funds were now solely reserved for the
  Anglicists in all the presidencies.
• Even vernacular education promoted by
  Elphinstone, Governor of Bombay, came to an
• The good Raja, the Raja-zamindars, and
  merchants rich under the Company rule-the
  Anglicists-had won.
• Consciously, or unconsciously, subjectively, or objectively
  the good Raja assisted the closure of a possibility of
  Indian production based on and improved by natural
  philosophy and inventions, and in the prevalent context
  whose produce would compete in the marts of the world.
• The good raja spoke of employing European gentlemen of
  talents and education to instruct the natives of India; that
  is of natives who had the leisure and the affluence to
  acquire proficiency in a foreign tongue, and then only to
  have further leisure and affluence to gain instruction
• The good Raja could never conceive of a Faraday, a poor
  book-binder, a technical assistant, a self taught scientist,
  and experiments par excellence; or of James Watt from a
  humble family, an instrument maker; examples can be
• In any event what provoked our Raja to make him act as he
• Would the study and application of native traditional law
  espoused by warren Hastings or William Jones desire to
  bring to light their various forms of government result in
  jeopardizing the very existence of a class brought forth by
  Lord Cornwallis? Perhaps Jawaharlal Nehru was more
  accurate in his assessment when he chose to quote Lord
  William Bentink’s statement in 1829
• “If security was wanting against extensive popular tumult
  or revolution, I should say that the Permanent Settlement,
  though a failure in many other respects, has this great
  advantage at least, of having created a vast body of rich
  landed proprietors deeply interested in the continuance of
  British Dominion and having complete command over the
  mass of the people”.
• Here we have so far considered only the birth of those who
  are amongst those called ‘Our Children’ by Montagu and
• On the 22nd of April, 1918, in Shimla. The signatures of
  Edwin S Montagu and Chelmsford were appended to a
  document which marks a turning point in history of
• The Report on Indian Constitutional Reforms 1918
  opens its first chapter by recalling the announcement
  made in the House of Commons by the Secretary of
  State for India on the 20th August, 1917:
"The policy of His Majesty’s Government, with which the
  Government of India are in complete accord is that of
  increasing association of Indian in every branch of the
  administration and the gradual development of self
  governing institutions with a view to the progressive
  realization of responsible government in India as an
  integral part of the British Empire. They have decided
  that substantial steps in this direction should be taken
  as soon as possible....

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