Question

How did British industrialization lead to de-industrialization in some sectors of India?
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Answer 1

Answer:

The process of de-industrialisation is an economic change in which employment in the manufacturing decline due to various economic or political reasons.[14] The decline in employment in manufacturing is also followed by the fall in the share of manufacturing value added in GDP. The process of de-industrialisation can be due to development and growth in the economy and it can also occur due to political factors. In other words, the term de-industrialisation means a general reduction in the industrial capacity and came into prevalence in India with the destruction of the handicrafts industry by external competition from British manufactured products during the 19th century.

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Answer 2

Answer:

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Explanation:

The increased competition from British cotton and rising nominal wages reduced the profitability of the cotton industry of India. Thus, the negative supply shock in agricultural production is also an important reason behind the de-industrialisation of cotton industries.