The Market as a Social Institution

The Market as a Social Institution

Question

Discuss the emergence of new market during colonial India.

Answer

In the colonial era, India began to be more fully linked to the world capitalist economy. We can discuss the aspects of new market formed during colonisation period in India as under:

(i) India became a source of raw materials and agricultural products and market for manufactured goods.

(ii) New groups of Europeans in alliance with existing merchant communities entered into trade and business. It has overturned existing economic institutors in India.

(iii) New communities of India who could re-orient themselves in the changed environment of business and trade were like Marwaris represented by industrial families such a Birlas.

(iv) Success of these industrial families rested on their extensive social networks. Their banking system ran all over India doing colonial period.

Conclusion : Thus we see growth of a new business community during colonisation. It illustrates the importance of the social context to economic processes.

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