THE BOOK REVIEW OF POVERTY AND UNBRITISH RULE IN INDIA WRITTEN BY DADHABHAI NAOHORJI OF 12 PGES
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Naoro)i in this case opined that failure of crops did not cause poverty but it was the poverty which turnedscarcity into famines. 6overty and unemployment had also been caused by the process of de+industriali5ation which had affected Indian handicrafts and textiles industries to a great extent due to theadvent of foreign industries and thus a million Indian workers had lost their )obs leading to unemployment.6overty had also been caused by the wasteful use of land including division and subdivision of landholdings over cultivation cultivation of inferior 7uality land over employment on land. This pressure onland acted as a catalyst to make the workers indulge in ruinous competition to ac7uire tenancies onuneconomic and exorbitant rates.The !ritish had used India to transform it into a chief centre for exporting raw materials to feed the !ritishindustries and this in turn made India turn into the chief importer of finished products thus increasing thesufferings of Indian industries. "adabhai Naoro)i talked on similar lines in his book $poverty and un+!ritishrule in India' when he said that the chief items of export had been food grains and cotton and the main itemsof import had been manufactured and finished products from !ritain.The only way to save India from the economic breakdown was to indulge in heavy industriali5ation toincrease national savings and this would as a result reduce the "rain. This had been the main argument ofthe moderate nationalists like Naoro)i %anade &okhale &.8 9oshi and the like. They also believed thatenhanced industriali5ation would enforce nationalism and unify the people which in the long run wouldhelp in the formation of the nation state. Many nationalists themselves took up the initiative of setting upindustries themselves. "adabhai Naoro)i in -:: became a partner in the commercial firm of the camaswhich was the first Indian firm to have been set up in 4ondon. ,nd in -;1 he started his own concern under the name of "adabhai Naoro)i and co. the nationalists held industrial exhibitions aiming at promotingindustrialism and they viewed laisse5 faire as an impediment to industrial growth and development as it gavea higher priority to the highly developed industries and the smaller industries receded to the background.Threat of foreign capital domination led "adabhai Naoro)i and &.8 9oshi press for nationalisation of all theindustries which could not be managed by the Indian entrepreneurs and thus served as a good way ofkeeping foreign capital out. Naoro)i even highlights the issue of favourable balance of trade that happenedwhen exports became greater than the imports and in this way he established a close connection betweenforeign trade export excess and the "rain of wealth from India.In his paper $England2s "ebt to India' "adabhai Naoro)i read before a meeting of East India ,ssociation4ondon 0nd May -;/ he put forward the idea that !ritain was extracting wealth from India to pay the priceof her rule. *is association with the press dated back to -;- and his newspapers included N,TI8E<6INI<N and %,(T&<=T,%. The "rain mounted to -0 million pounds a year. In his $statement to theselect committee on East India =inance in -/-. "adabhai opined that the necessity for the "rain had been anatural economic result of foreign rule.In -; he summed up his criti7ue of the !ritish %ule> $??under the present evil and unrighteousadministration of Indian expenditure the romance is the beneficence of the !ritish %ule the %eality is the@bleeding2 of the !ritish %ule',ccording to Naoro)i the "rain had been because of excess employment of the Englishmen in Indianadministration. ,nother reason had been the payment of the home charges which consisted of the paymentof interests on the Indian public debt and the guaranteed railways cost of military civil and military charges paid to England payment of pensions and allowances to European officials of Indian government. The thirdmain %eason for the drain had been the profits of foreign capital invested in trade or industry in India. The"rain impoverished the country and this had a harmful impact on income and employment.In $6overty and un+!ritish %ule in India' Naoro)i said that the "rain cut into current National savings anddiminished the existing stock of inherited national capital. "adabhai said that the remedies to the "raincould be Indianisation of services and holding of the #ivil (ervice Examination simultaneously in India and
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