Write a note on Indian trade, colonialism and global system in 19th century.

Indian trade, colonialism and global system in 19th century:

(i)Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.

(ii)From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the Britishmarket by tariff barriers, Indian textiles now faced stiff competition in other international markets.

(iii)While exports of manufactures declined rapidly, export of raw materials increased equally fast. Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent. Indigo used for dyeing cloth was another important export for many decades.

(iv)Over the nineteenth century, British manufactures flooded the Indian market. Food grain and raw material exports from India to Britain and the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India.

(v)Thus Britain had a ‘trade surplus’ with India. Britain used this surplus to balance its trade deficits with other countries – that is, with countries from which Britain was importing more than it was selling to.