why did the Rapid development take place in Indian industry during the first world war
Answers
Underdeveloped countries are greatly handicapped by shortage of capital for industry and enterprise.
Finance is the prime maker of growth. Anyway, capital for industry and entrepreneurial zeal were severely and conspicuously scarce in India when the East India Company (1600-1874) stepped into this country.
It was very difficult to raise capital on private initiative in the days of the Company rule and, thereafter, because of damped forces of demand and supply capital remained shy.
Naturally, under the circumstance, the state is supposed to act as a godfather for promoting and financing industries. Since India was under the British rule for almost 200 years (1757-1947), the British Government, found it unprofitable and unnecessary to go for industrialization in India. However, imperialist capital came in this country as a matter of colonial policy—the policy of subordination of Indian to British capital. It was only after the First World War (1914-1918), that state patronage for industrial development was visible as Britain’s supremacy all over the globe came under serious threat.
Against this backdrop, a “new” pattern was evolved to overcome the obstacles of (i) shortage of entrepreneurship; (ii) non-availability of, mainly, venture capital; and (iii) dearth of managerial skill and knowhow.
This new pattern of industrial organisation that evolved came to be known as the Managing Agency System (MAS)—a peculiar business entity in the early years of the nineteenth century. Before we embark upon this form of industrial organisation, we will make a brief review of the industrial development during the British rule.
ᴛɪʟʟ ᴛʜᴇ ғɪʀsᴛ ᴡᴏʀʟᴅ ᴡᴀʀ, ɪɴᴅᴜsᴛʀɪᴀʟ ɢʀᴏᴡᴛʜ ᴡᴀs sʟᴏᴡ. ᴛʜᴇ ᴡᴀʀ ᴄʀᴇᴀᴛᴇᴅ ᴀ ᴅʀᴀᴍᴀᴛɪᴄᴀʟʟʏ ɴᴇᴡ sɪᴛᴜᴀᴛɪᴏɴ. ᴡɪᴛʜ ʙʀɪᴛɪsʜ ᴍɪʟʟs ʙᴜsʏ ᴡɪᴛʜ ᴡᴀʀ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ᴛᴏ ᴍᴇᴇᴛ ᴛʜᴇ ɴᴇᴇᴅ ᴏғ ᴛʜᴇ ᴀʀᴍʏ, ᴍᴀɴᴄʜᴇsᴛᴇʀ ɪᴍᴘᴏʀᴛs ᴛᴏ ɪɴᴅɪᴀ ᴅᴇᴄʟɪɴᴇᴅ. sᴜᴅᴅᴇɴʟʏ, ɪɴᴅɪᴀɴ ᴍɪʟʟs ʜᴀᴅ ᴀ ᴠᴀsᴛ ʜᴏᴍᴇ ᴍᴀʀᴋᴇᴛ sᴜᴘᴘʟʏ. ᴀs ᴛʜᴇ ᴡᴀʀ ᴘʀᴏʟᴏɴɢᴇᴅ, ɪɴᴅɪᴀɴ ғᴀᴄᴛᴏʀɪᴇs ᴡᴇʀᴇ ᴄᴀʟʟᴇᴅ ᴜᴘᴏɴ ᴛᴏ sᴜᴘᴘʟʏ ᴡᴀʀ ɴᴇᴇᴅs. ᴏᴠᴇʀ ᴛʜᴇ ᴡᴀʀ ʏᴇᴀʀs ɪɴᴅᴜsᴛʀɪᴀʟ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ʙᴏᴏᴍᴇᴅ ɪɴ ɪɴᴅɪᴀ.
ᴀғᴛᴇʀ ᴛʜᴇ ᴡᴀʀ, ᴍᴀɴᴄʜᴇsᴛᴇʀ ᴄᴏᴜʟᴅ ɴᴇᴠᴇʀ ʀᴇᴄᴀᴘᴛᴜʀᴇ ɪᴛ's ᴏʟᴅ ᴘᴏsɪᴛɪᴏɴ ɪɴ ᴛʜᴇ ɪɴᴅɪᴀɴ ᴍᴀʀᴋᴇᴛ. ᴛʜᴇ ᴇᴄᴏɴᴏᴍʏ ᴏғ ʙʀɪᴛᴀɪɴ ᴄʀᴜᴍʙʟᴇᴅ ᴀғᴛᴇʀ ᴛʜᴇ ᴡᴀʀ. ᴄᴏᴛᴛᴏɴ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ᴄᴏʟʟᴀᴘsᴇᴅ ᴀɴᴅ ᴇxᴘᴏʀᴛs ᴏғ ᴄᴏᴛᴛᴏɴ ᴄʟᴏᴛʜ ғʀᴏᴍ ʙʀɪᴛᴀɪɴ ғᴇʟʟ ᴅʀᴀᴍᴀᴛɪᴄᴀʟʟʏ. ᴡɪᴛʜɪɴ ᴛʜᴇ ᴄᴏʟᴏɴɪᴇs, ʟᴏᴄᴀʟ ɪɴᴅɪᴀɴ ɪɴᴅᴜsᴛʀɪᴀʟɪsᴛs ɢʀᴀᴅᴜᴀʟʟʏ ᴄᴏɴsᴏʟɪᴅᴀᴛᴇᴅ ᴛʜᴇɪʀ ᴘᴏsɪᴛɪᴏɴ, sᴜʙsᴛɪᴛᴜᴛɪɴɢ ғᴏʀᴇɪɢɴ ᴍᴀɴᴜғᴀᴄᴛᴜʀᴇs ᴀɴᴅ ᴄᴀᴘᴛᴜʀɪɴɢ ʜᴏᴍᴇ ᴍᴀʀᴋᴇᴛ.
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