While British economic policies largely focused on extracting resources and suppressing Indian industries, a countercurrent emerged in the late 19th and early 20th centuries: the rise of modern industries in India. This nascent industrialization, driven by Indian entrepreneurs and capitalists, laid the foundation for the country’s post-independence economic development.  

Early Industrial Efforts:

• Despite the obstacles posed by British policies, a few pioneering Indian entrepreneurs recognized the potential for modern industries. They sought to establish industries that could compete with British imports and contribute to India’s economic self-reliance.
• The late 19th and early 20th centuries saw the emergence of various industries, including cotton textiles, jute mills, and small-scale manufacturing.

The Landmark: Tata Iron & Steel Company (TISCO) (1907)  

• A pivotal moment in India’s industrial history was the establishment of the Tata Iron and Steel Company (TISCO) in 1907. Founded by Jamsetji Tata and realized by Dorabji Tata, TISCO was the first major Indian-owned steel plant.  
• Located in Jamshedpur, Jharkhand, TISCO symbolized India’s potential to produce heavy industries. This enterprise began pig iron production in 1911 and steel production in 1912.  
• TISCO’s success demonstrated that Indian entrepreneurs could establish and manage large-scale industrial ventures, challenging the prevailing notion that Indians were incapable of modern industrial production.  

Emergence of Industrial Hubs and Capitalists:

• Cities like Bombay (Mumbai), Calcutta (Kolkata), and Madras (Chennai) emerged as major industrial hubs, attracting investment and skilled labour.
• A new class of Indian capitalists emerged, including figures like G.D. Birla and Jamsetji Tata. These individuals not only established successful businesses but also played a significant role in supporting the Indian freedom movement.  
• They recognized that economic independence was crucial for political independence.
• These Indian industrialists often funded and otherwise supported the Congress party and other entities that supported Indian independence.  

Impact of Early Industrialization:

• Foundation for Post-Independence Growth: The early industrial efforts laid the foundation for the rapid industrialization that followed India’s independence.  
• Symbol of Self-Reliance: TISCO, in particular, became a symbol of Indian self-reliance and national pride, demonstrating the country’s potential to overcome the constraints of colonial rule.  
• Stimulation of Economic Activity: The rise of modern industries stimulated economic activity, created employment opportunities, and fostered the development of related industries.
• Nationalist Sentiment: It also furthered nationalist sentiments as the establishment of Indian industries provided tangible proof that Indian citizens were capable of successfully competing with British industries.
• Development of Skill and Expertise: It also fostered a generation of Indian engineers and skilled labor that would become a vital resource after independence.

While the British Raj continued to hinder the full potential of Indian industries, the seeds of industrialization had been sown. These early efforts proved that India had the entrepreneurial spirit and the resources to build a modern industrial economy.

The Rise of Modern Industries in India

Q: What was the significance of the Tata Iron & Steel Company (TISCO)?

• A: It was the first major Indian-owned steel plant, symbolizing India’s potential for heavy industry and self-reliance.  

Q: When was TISCO established, and where was it located?

• A: It was established in 1907 and located in Jamshedpur, Jharkhand.  

Q: Which cities emerged as major industrial hubs in India during this period?

• A: Bombay (Mumbai), Calcutta (Kolkata), and Madras (Chennai).

Q: Who were some prominent Indian capitalists who played a key role in the rise of modern industries?

• A: Jamsetji Tata and G.D. Birla.  

Q: How did the rise of Indian industries contribute to the Indian nationalist movement?

• A: It demonstrated India’s potential for economic self-reliance, fostered national pride, and provided financial support to the movement.

Q: What were some of the challenges faced by Indian industrialists during British rule?

• A: Discriminatory British policies, limited access to capital, and competition from established British industries.  

Q: What types of industries began to grow in India during this period?

• A: Cotton textiles, jute mills, and steel production, among others.

Q: How did the early rise of modern industries lay the foundation for post-independence India?

• A: It provided a base of industrial experience, skilled labour, and entrepreneurial spirit for future industrial growth.  

Q: What was the general attitude of the British government toward Indian owned industry?

• A: The British government generally hindered the growth of Indian-owned industry, to protect British economic interests.

Q: What effect did World War 1 have on Indian industry?

• A: World War I accelerated some Indian industrial growth because the British Empire needed resources and manufactured goods.