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Home / IAS Preparation / Industrial Revolution In India

Industrial Revolution In India: Transforming The Nation!

Last Updated on Apr 21, 2025
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The industrial revolution in India saw the emergence of a number of industries, especially in the latter half of the 19th century. 

This article on the Industrial Revolution will be helpful for the UPSC IAS exam and UPSC History Optional exam preparation.

Factors Leading To Industrial Revolution In India 

Let us discuss some of the factors which led to the rise of the industrial revolution in India. 

Growing Demand

India had a huge domestic market which generated demand for mass-produced goods. As the population grew, so did the need for manufactured products like textiles, processed food, machinery etc. A large, stable market was required for factories to operate efficiently and produce goods in bulk. This led to the emergence of industries to cater to the growing demand.

Availability Of Raw Materials

India had abundant natural resources like minerals, cotton and jute, which were essential raw materials for many industries. Large deposits of coal and iron ore helped fuel the growth of metal industries. Cotton and jute production was abundant, which the textile industry relied on. This availability of raw materials at low costs helped industries to start and grow in India.

Advancements In Transportation

Improvements in transportation, like railways, helped in the movement of raw materials to factories and the transport of finished goods to markets. The railway network expanded rapidly under the British, connecting different parts of the country. This allowed for easier transportation of resources, workers and finished products, aiding the growth of industries.

British Colonial Rule

The British government's policies promoted industrialization in India. British companies set up factories and mills to produce goods and raw materials for their own industries. The British imported cheap raw materials from India and exported finished manufactured products back. Their policies favoured the growth of industries that produced for their needs.

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Early Industrialisation In India

These initial industries laid the foundations for India's major modern industries.

  • Cotton textile industry: The cotton textile industry was the earliest and largest industry that grew during the industrial revolution in India. It started with the first steam-powered textile mill set up in 1854 in Bombay, and soon, many mills came up across the country. Cotton cloth production rose rapidly to meet the significant domestic demand.
  • Jute industry: The jute industry developed around the same time as cotton textiles because raw jute fibre was readily available from Bengal. The first jute mill in India was set up in 1854. The industry flourished due to the demand for jute bags and sacks required for exporting cotton and other crops.
  • Sugar industry: The industrial revolution in India saw the rise of the sugar industry with the establishment of many sugar mills, especially in Uttar Pradesh. Sugarcane was a major cash crop, and sugar had demand domestically. The industry steadily grew in the early 20th century.
  • Paper industry: The paper industry emerged in the late 19th century with the establishment of mills using locally made plant-based paper-making materials. The industry grew with the expansion of print media and the demand for paper products in India.
  • Iron and steel industry: The iron and steel industry started with the setup of Tata Iron and Steel Company (TISCO) in 1907. It became the harbinger of this heavy industry in India during the industrial revolution. The sector mainly catered to the needs of the railways initially.
  • Rubber industry: The rubber industry stemmed from the large production of natural rubber in Kerala. Rubber processing plants and factories producing rubber products came up in the early 20th century.
  • Chemical industry: The chemical industry started early during the industrial revolution in India, with factories producing soda ash, bleaching powder, organic dyes, phosphoric acid and other essential chemicals.
  • Machine tools industry: The need for machines to enable further industrialization led to the emergence of small machine tool factories producing lathes, drill machines, milling cutters and other tools.
  • Electrical equipment industry: The first electrical factory producing electrical goods like fans, lamps, batteries, and switches came up in the early 20th century to meet the demands of expanding urban centres.
  • Cement industry: The cement industry was pioneered by a few large companies that set up integrated cement plants soon after the turn of the 20th century. Construction activities created a demand for cement.
  • Automobile industry: The automobile industry began with the production of commercial vehicles like trucks and buses in the early decades. Companies like Hindustan Motors and Premier Automobiles started making cars after independence.

Impact Of The Industrial Revolution On India

The industrial revolution started in Europe during the mid-1700s and early 1800s. It slowly spread to other parts of the world, including India. The industrial revolution changed the way goods were produced. With the help of machines and mechanization, the production of goods increased rapidly.

  • Before the industrial revolution, India had traditional modes of production. Goods like cloth and other items were produced in homes or small shops. Production was very slow and only in small amounts.
  • The industrial revolution led to the setting up of factories in India. Factories used large machines run on steam power or other sources of energy. This changed the way goods were produced. Now large amounts of goods can be made very quickly.
  • The most significant change happened in the textile industry. Factories started producing large amounts of cloth daily. Handloom weavers in India suffered greatly due to this. The market for their cloth was reduced because factory-produced cloth was cheaper.
  • New industries also started emerging in India. Cotton and jute mills, iron and steel plants, chemical plants, cement plants, and mining industries emerged during this time. New occupations also came up because of the new industries.
  • Foreign companies played an important role in setting up the initial industries in India. There were some Indian entrepreneurs, too, who set up factories. But overall economic power remained with the British during the early years.
  • Industrial development was skewed during the initial years. Only a few cities like Mumbai, Chennai and Kolkata witnessed rapid industrialization. Most of India remained unchanged. Farming continued to be the main occupation for most Indians even after the industrial revolution.
  • Though the industrial revolution brought rapid changes in production, social changes happened slowly. Problems like inequality, poverty and child labour were prominent in the initial industries. The living and working conditions of factory workers were very poor.
  • There were some positive impacts too. India's economy started integrating with the world market due to the new industries. Trade increased between India and other parts of the world. New job opportunities were created for people who migrated to cities in search of work.
  • Over time Indian entrepreneurs gained more prominence by setting up industries. The state started playing a more significant role in industrial development after independence. Government policies promoted public sector industries. These changes helped in spreading industries to other regions of India and creating more employment.

Conclusion

Though the industrial revolution brought large-scale changes in India's economy, the initial phase was dominated by foreign companies. Industrial development was concentrated in a few cities. Social changes happened slowly due to the prevalent social structure in India. Gradually Indian entrepreneurs emerged, and government policies helped in spreading industries to other regions, creating more equal opportunities. The impact of the industrial revolution continues even today in India's development.

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Industrial Revolution In India FAQs

The industrial revolution reached India in the late 1700s and early 1800s, but it took a few decades for industries to start developing in India.

The primary industries that emerged were textile industries like cotton and jute mills, iron and steel plants, chemical plants, cement plants and mining industries.

Initially, foreign companies from Britain and Europe played a major role in setting up industries in India. Later, Indian entrepreneurs also started their own factories and industries.

Social problems like inequality, poverty, poor living conditions and child labour became prominent during the initial phase of industrialization in India.

After independence, the government promoted public sector industries and implemented policies to spread industries to other regions of India apart from the major cities. This created more employment opportunities.
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