FTHOUHOKKESSTKHKHHHKHHHHHHHHHHEECLEEELEY Z India and the global economy, 1600-1800 Introduction Historians long thought it was self-evident that Europe lay at the center of the world economy of the seventeenth and eighteenth cen- ‘uries. Immanuel Wallerstein summed up several generations of think- ing when he wrote, “The modern world-system took the frm of a capitalist world-economy that had its genesis in Europe in the long sixteenth century. .. Since that time the capitalist world-economy has geographically expanded to cover the entire globe.”! This passage captures three assumptions that have informed decades of historical scholarship. Europe was dynamic while the rest of the world was static. Europe gave rise to capitalism and brought the rest of the world under its economic ambit. Europe was at the core of the early-modern trading system. Flows of silver and manufactures between 1600 and 1800 present a different picture and reveal the key positions of India and China in the world economy. A rethinking of India’s place in the global order began with the uncovefing of the vibrant commercial world of the Indian Ocean. K, N. Chaudburi provided an important statement in his Trade and Civilisation in the Indian Ocean, which showed that mercantile sophistication and commercial dynamism predated the arrival of European traders. He and others also-demonstrated that ‘Asian merchants did not fade away with the coming of the Portu- guese, Dutch and English and subsequent reseaych has shown that ‘Asian mercantile capital was in a secure positior’into the nineteenth and even twentieth centuries.* On the Indian landmass itself, a number of historians have argued that European merchants. and ° traders, rather than dominating their Indian counterparts, had to adapt and fit into the vigorous commercial order, which is testimony to the power and acumen of Indian merchants.? ‘Similar ‘research uncovered economic vibrancy in other parts of Asia. The substantial2 Europe an Asia bf divergence ws frie manufrs, spices, peesions metals id ther goods ‘eeween Southeast Asia ad China, for stance, comprised deme work of exchange Draw opon his evisioniseseareh, Ande Gonder Frank med uyocentim on i head and argued dat well ino the eghtenth ceaury Asa was atthe center ofthe global system. Acconing 10 Frank, “The eo major eons that were most ‘entra othe world econcny were nda nd China,” stats they chimed case ofthe ‘olume oftheir expons of manutactared ood, which hey exchanged foe alver® China exported porcelain an sik crn the be while ‘he Indian subcontinent prodaced a seemingly endl variety of ‘ton textes that “lth the woe,” according to tle onthe subject Iris ths rate of lbal trade in which silver fom into ‘sn in exchange for manufactures that as produced retin of ‘he locaton of the cater af the world economy in the eententh ad ‘iehteath centres. Whether from the Ames or Japan, silver «steed the dynamic, commercial eons of Inia and China, where 'efucled the expansion of ecromic atv, gated the heavy wheels of comme nd rote ese nome ean nd Frank aged that China was oe ctl than Indi inthe Ai ‘entered lobal economy tease t pone rater capacity to export and 52 coneqhene, monopoined the bulk ofthe words ‘ump of sive” Fan, and oes who share his pion, dees ‘ate the place of the Indian subcontinent nthe world aig ate of he sevetenth and eigheath emar, Bde hy he ence ‘ofthe Chinese uninerse,they fil to appreciate the mage ofthe lobal trade in Indian coton teats, which had een the maior ‘export ofthe subcontinent for many cei, and whch were exchanged for slvex, gold and other commode that seed at ‘ney. ulin for gods” i how Orn Prakash abled thie ‘While is chapter argues that nda was major center the ety- modern work cone it dosnt seck to repae Fan Scene -obal system ethan equal ncn Indra eon. Aingh These were imbalances ad inequalities inthe bal economy f the seventeeth nd eigheeth ceric, thee wat snl ete anit fs more accurate to speak of» polycentric bal ore, but stall repions were cal ia the system, a skin tated by ow of Sver and cot textiles. s nis ard th lab ecomomy, 1600-1800, 2 Tine global trade in cotton textiles The eaton texts ofthe Indian subcontinent were demanded across the wod nthe eventconth and egheenh centres. Coton signed ‘xpreme becase i yields a clos that can be woth comfortably ia a sie vaiy of climates. slices asthe primary dee inthe het and ‘mito the topics and serves 5 par ofthe epee of garments in elder climes, Corton also takes and hols dyes and designs beter than nen and woo, which allows forthe manufacture of oloful ad tdatoratly decorated cloths that maintain their fish even ser repeated wathings The fabrics made from cotton were ao lighter than rem the lightest wookens, which adel to thir appeal, especialy for tnany Europeans. Bally, che prices of cotton cloths wee lower than ‘howe of il oto main compesitoe stems of fish and Golo: ‘efre the seventeenth century the major export markets for Indian cation cloth were inte Indian Ocean. The Red Sea and Persian Gulf tree loguanding destinations for bods Indian waders and Indian food, Indian cots were also exported to Southeast Asia, where they tree exchanged for spices and East Africa where they were sod for slaves The Fast African demand for Inn cctns made possible the slave ars that were fielded by the Islamic Kingdoms of the Decean ia carlpmadem tines, Aecoring to Richard Eaton, “Aican manpower ‘was exacted and exported in exchange mainly for Indian teres ”” “The etry of Eaopean traders ic the Indian Ocean opened three ‘new markets for Indian cloth. The fst was in Europe iself where feom the sitenth cenpry small quantities of Indian painted and ‘embroidered cloth werd imported ino Portal. These exiles tended to he of ver high quay, but they were diteibuted on a small sale 1w other pasts of Europe. Most critcally fr fture developments, ‘hese goods fered into Holland and England, which became the lending wading nations of Europe in the seventeeth and eighteenth ‘conus. From thee erly hafury beginnings, Dutch and English traders, who had been seling Indian cloth in Southeast Asie to rchate spices, experimented with shiping cargoes of cloth back te Aner nd London. Rom te mii of he sre century, 4 growing market in Barope, setting off ‘what conremporais labeled the “eae craze." Indian cotoa cloths ound ready buyers in Europe because they ‘vereligh cola colorfart, washable and available ina wide rangeCOCCCERC ET arope and Ass before divert of ses and quai. The-wper cas of Erope demande foe ease was fully pained with eal an ther “ature” Ft ce tps meine, Indian cottons made i pose fo the poorer ren hough coarser WEAVE feel hand pated ens of wookens val ObSEE, ohne cos tosmi ca tenth Sd with more rly pened ater thn hl ican ars xn ot eid End he dab bows ad gays finns Ad 0 ‘Tk the cy of cots Boh ich and poor wee dressed alk rodecig + sal lvelng though consumption, For the poor ‘itser of arope Tdan goods abo made i posible foc them wea lighter cc hat as les expensive than sik and fa more osje axes Jo uoRNgustp 2fqeambs ax0Ur e305 Soumpejnuen sone paremaioap foyod apes Geog ama SAIMEMUEUE PUP SIURPNHW veIpul rey sep seeder ying, a es ea PH < € e arom pur uids 01 wey) Uono> aster 02 UEIPUT 2 30} 39119qModem indy in cals india State suppore was not slice forthe etn of 38 {Stony the nnctenth camry. Thee anos xsl of “ate sponsored fallae fram aroun the ibe, Nevers isa theca tht without state asian of some Kn Jd the frm that {his tok varied widely fom place to place ~insiniaton wa ‘pone. This was the station in intent-centry nda whee the Bath colonial state adie desi or intext in prot i- ‘al development “Topointto the cen iy ofthe sate noo deny an important oe {to eivate actors The choice between the matt andthe state fale fee lor both saesupport ada wel functioingmathet ae ry for the development of + modern economy. The histocal eat leks abundanteridencefrthsconchasion, Cacsestend fom tin ‘ithe tghecoth century to Franc, Blum and Germany inthe etl ‘sinctcenth, to Japan in the late nineteenth and to Korean the te ‘wrenwietc In the eatly nineteenth ear, the lain subcontinent ‘Possesed some ofthe most economical and commercial alae ‘#ion in the world. Merchant and enzepeneial abies and at ‘aaal and craft skis wer highly developed and continued 0 be for several decades, Without state suport and encouragement, weve, ‘ommecial and technica} acumen could ao be tated ino a Industrial 7 ‘The fis half of the nineeesh cencary repeat mise ‘opportunity for economia the subcontinent. In these ety days ‘of colonial rue, the sil ind knowledge pose by Indian artisans and mechanics were far closer to tote of thee coumerpar in Europe than was tobe the case later in the cen ln thee deca, the transfer of European techniques and machines was, thelr, ‘much easier than it was ater By 1900, the knowledge exp had widened and Indian technical sill ‘had fallen far ehiol the standards of Europe. Much worker knowlege was also los within ‘one of to generations of the establishment of Bish el, a the variety and scale of manufacturing activities ia India was sharply reduced. Without shipbuilding, ion smcig, gum making doth hy ee ee Figure £1 Distribution of etsh grat investors by level of eduction and oon Soot Perdana Saye ane 2S Sa sateen actapeagel ami eng ees dae ce age dado bie en ee ees ‘bounds. This scaling up of knowledge is captured in Zorina Khaa and Yar fic kone pet ame of yeh sem ey eno py aon pene ee Sen bs ueochaaaeeg eae Sa Suetresn Theny opis or anak ale Pst lalnreeprerte SS See ee ce pe as oo ee an ese bo tee wae porey entaepeneieperstat peerie” Lreccaa! eater eae enone arate pee att cena ae a =Given the impor for economic change and devek {adi ha focus on eu ocevource endowments ae misonei Economic decline in nines cerury Ida was imately ‘Rested to colonialism and sate plies which issn *£eaoora po sg. 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ean cse whe wrt ged sme poy he ces.aprto he compensson foul han coed of ods no ing mes, housing or wate oct Testes wet we seceeeretettttHit ntti iy | don othe monetary payment thatthe water seceved. While ‘eh sources ype Inde both monetary and non-monetary ments when ging a wage gue, sures fornia fal to do thc Inhisalation of payments tolabarersi arcu, Pataca Inchded non-monetary persistency mess and housing tnt all of thee paynent cold be denied ox “ated” sach ‘daily lowance faecal drks which were gen nace Broader and Gupta fal nce sich pequstes in heir mes ‘res but pens, scarenges and er workers how exings they ‘hve etated woul have very He reeved mea and aber spe ‘meno the money they mere psd. ‘inal, Beoadbery and Gupta tice Prthasrathi enim of weave enings on the rounds tai fures ae oo high. Tic: "ie however eles upon an incur ditincton between sled sd ual labour Brodery and Gupta tet scavengers 2 low and elco weaver as undid. Whe is cenaily correc et. ‘Scavengerlow sled thecacowemers whose ans arth simated wee fll tine manfcturers who manufactured cloth fr ‘mates in Europe, West Alfa andthe Middle East. These weer ‘were skilled worers andi the rach of wearer lin eihteh ‘etary South India they were somewhere inthe middle When the ‘hl incon ae draw cet the Parasia wenwer eg Suter may be sen content with the Broader nd Gaps esr saenges scan be scen ina 15.2, Wen earings were higher, ba that was de othe sl premium that they rece In ado theParcasarath estimate for what rodbery and Gaps calla shed worker sacl for one fhe mos high led work ‘singer century South Ind 2 maafctrer of fe cece ‘ndmshis From ths perspec wich makes cael tints of ‘ls the Breadbery an Gupta urs for weaver eigs in 179 ‘1790 tht ae anomalous, ot Parthsarah ure for mili Ssndigh al vevers Partacrths dats on ensign agar, which and Gupta igo akoete.frtber suggests tha the Boner fd Gupta weaver gue anomalous spread ‘aig: gure come fom the ate ihe and ely ieteeth + ncaa open chen ory hein he ae eeetea te ‘Soto —__epicamrta BSL lie Gen eps vgs eso SA tm ps Pre sce th open cy as a wa to me 8 [ » peeerecececceell a Rasa WARTHAARAT tain a pctre of the standard of ving Thi why the gualtative tridence on wenvers and ther plce inte political and economic ‘eds in Britain and South India ae crucial they provide valable Cridenc in suppor ofthe rude earnings fires. he weak torical and empirical foundation ofthe Broader 3nd Gupta say isa evident when they dearth the Indian subcon- ‘Sowa ceonamcal bahar Te argument snot based on emp Gal evidence or more specially of efutation of two decades of revcrch on the economic and comsmercl sophistication ofthe sub- Continent inthe seventeenth and eighteenth centuries, bat rar on ‘logy. Since southern Europe had lw ser wages and it was eco ‘pomicaly less advanced than northern Europe, rosdbery and Gupta ‘Concldethat low ver wages he subcontinent was coupled with 2 trckward economy as well No historical materials provided in sp- portf sch sweeping chim. The pousle economic ypesinthe work re redoed to tw the nother and southern European. Broadberry “ Gopa donot sem to have considered the posit that other Combination of siher wages and ecoaomic sophistication could have ‘tuted inthe vas global economy ofthe eighteenth century. “Thebacowardnese of eghzeth-centry India supported with the assertion that productivity the tele sector was lower in Indi than in Earope“Apsn, no evidence on productivity s provided in support, cf hic. On the face of this can i ard to fathom. In both ‘Europe and Inds, weavers and spines worked on technologies that were very smile Weavers usd frame oms wth hand thrown sbt- ‘erand spinners ele rely on spningwheesin both places Given ‘the comparable technologies, why shold productivity be wath dif et Inthe sbence of email materia in spor of hi argent, ‘roadbery and Gupta base thei coaclasion on 2 famous model of International trade devdoped by Rudiger Dornbush, Sankey Fisher ‘nd Pal Samuelson Rather tha aalang the historia cord they ‘Ssume thatthe eighteenth century tide between Europe and Asia normed io ths economic mode “The se of ths modes Most crcl assumes that lth pices (ormare pec the rie ofthe rade god) weresetby Rais Darby Fach ad Pa sett tn yaa ta oak Canam oso oscar pR ESvs 3 ‘RbtH9e in the world make. Hower the SO or tae PE Produced very litle cotton lth andthe Iie cis HB was set bythe dn price wit aks HT ae ‘a raaprt nt A fondant condi othe mol oo ‘ead be produced in both paces and be wold ri mrmediate pint between the wo prices 4 Th Charging Basso Campenni Di = the bate eighteenth, ony bi of compen NS Sotqen slg aaa oe ‘cane “The Indian competitive atvanage in the sever ‘satan enue ton ‘nat ate eighteenth century the cotton manufactes of Briain dam elit oe sel eh Foriegn the extraoedinary levels of productivity that machines afforded. As a result the relative | price of Indian conoa al ‘os hrc he aa ‘en es aa inset “yay oan gpa eb British echnologs ‘that the Engh spent intel emp athe sii ie ast India Company was eng poll Tie 159, TEES? Comte ri Eg ant aan a a 2 Tage 0 Pret) x an 1% sue 20 3308 BY “ Shc pt wo te Rp fon Coa eat Pa, {SE th eae Papers taney pe Et ‘Company Afar Ca. Es nd Sean, vd 6p Heit reeencceccee sou aasanan oaerssania lominace over the subcontinent. For mone thn century the feof be na ene nds upon the ean of Bish leas een atl debated goin Rc any since etary omen tors, twas an cep fac at the re frit lee oa wiping tof nda rl mansfacring Mar wig onthe ject re ‘the mot famous of the nneeentrcentry oun, and hse of the bones of the handloom weer Blehig the pan f India el imprinted inthe indo many Marv accounts ced ide spread asent from othe etenth-entary observer, most impor. {tly atonal who ete Scie ofthe te ty 2 Coie Bich rein Inca For Mar, the detction of fandloom weaving wat 3 pil bt cess inthe modernization fn. The Bish ere ily the bearers historia inewtby he deropment of capitis nd withitmder instr. For aborals, owevee he desucton ‘Ghanloon weaving in tna asa vv example of Bsshmisrle 2nd stated the dsaanaes ud which nia aboard asco. Sequence of friar nmol acount rsh ule was - ‘the iid for exploting the lndan market for Brits economic ‘enc witout concen orth tothe incon Teng om that flan ad ald Ind indy woul ave ben Po ‘ete and therefore survived Frere, the decline of fdian nda acty ceed th groundwork dn por. ety As Romesh Dutargued in is dai etique of British rae Indie an ec ‘ocho Senay ete red ein eae that of Acad of aoe Bat ee ath ast [eget platen flat oe patrol wa Although lite nintecat-ceatury commentators wrote with peat ‘tainty that Indian industry eae to be there was ac ‘ly Ie ‘ofthe evidence. Only fom the 19705 was rere ‘0 changes inthe ze and Sale of the tele “dustry inthe continent ver the cou ofthe meen enay Ranh Dut heme yf a 1, katy Da ee (ner Row de Tm stp ateapath raking cry Aina uma conpemlrmet gs om 18013 ani ping el er ac ‘ems din hen ol er be {8 shelte Sne amar epee iM Sigh he pop ef mandcarg men be Pope “eof” a ch ding ne ot necked Mar iy ‘tape te relay fe eden ba en pom P= itr he ety ance cory engl pr” Svea ucts hve ced ogc oman ing employment on ea fn er penn ‘pRontocatand onthe ass oferta ect ‘Stewie hoe nsaynoppote ag aad TERE sieved ance coy dept i he ces Prsency ed Tirana hoy har neds dee {Teeaneliaend anette Keg ‘neh Ti wt dec fs rn ee ‘oa ded =) {shes dindutalaton, boweve sto sng ede ese Simplest of changes that occurred in Indian canoe EES he pact of Bh ecmonic prc fhe ita ma Impact the more important” [Nather Specter nor Ry examined the ection he ete ‘ry om ts heyday nthe ate eighteenth cary Not ups he ‘umeframe oer which manufacturing activity alec hae oes, =r bt ana tanec Sass kt en, he Dede sine eh Cay cals ite eri ea toy (bah limo Taras Ba, > nay, Trl nutty fo in Cag ont ary ew FS. 126 aasoou rarrasanart ‘oncasions.on deindstiluation Speckerbepnshisanaisof South Tada fom the 1820 and 18805 afer a praca of dndtieston ad commenced, and ends around 1870 n theme fw second wave of eindustalzation Sil mich of Rays work has concen ‘etd on heat incest sd wea centuries afer the procs feindusriaiation had wotked its way rough the lian conony ‘nd the indigenous industlation ofthe subcontinent wes bin. ‘ing to expe rom the vantage po ofthe ate eihteemh ces, the decine of ‘manufacturing wat longand protracted process anak cera de de To some extent this dein was revered fom helt need eta but hs ter revi of manufacturing must be laced inthe conte of the peotacted contraction tht preceded it Despite an ‘apasion fom he te nineesth entry manafactring reper ‘smaller fraction oftotal economic ct han thas hundred years ‘athe “To examine this proces of nineteenth centr cg in etal the following dscusion focuses on texte manufacturing satan India ses the process of dindustiation st cceuring nS hues. In theirs phase oughly fom hehe perth enfury toe ‘id intcat century, the dete in ete maniac Ws pr mal due to the ls ofexport markets for Indan hth oats ee ‘roduer In the second om about 18501 188, Indian rodcton sired fom impored doth, which undeoltlclmanlactares “The analy begins with some loom ceneteen which much af he ‘Werte ondendstrializaton bas ented upon proxy for cath Production. Konrad Speck for example, red agai the thes of ‘dinstization ly based upon oom coun Tis foc on ‘mbes of om has ever seriou shortcomings One of the most ‘tas the limited ta on nambers of oon the ate gers ‘eatary andthe data that es exists diicalainerpet nd sompare wth that fr ter years. Newer, ths eee does sgget 8 ee in 187, according to a Commie of Creat Report the major earings inthe repon of Rajahmundry conti 7135 ms By the 1s his figure ad doped 326" Teele between the PER MMe ent Dan ame Gert