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Q.Indicate any two initiatives of the colonial Government of India behind their policy of systematically de-industrialization in India.

Manipur CohsemCOHSEM Manipur Higher Secondary Board (Commerce) 2023Subjective· 4mImportance★★★★★
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The colonial government deliberately used trade and tariff policy to favour British manufactured goods over Indian handicrafts, systematically destroying India's traditional industrial base — a process known as de-industrialization.

Two initiatives behind systematic de-industrialization:

  1. Discriminatory tariff policy / one-way free trade: The colonial government allowed British manufactured goods to enter India duty-free or at very low tariffs, flooding Indian markets with cheap machine-made goods (especially textiles), while Indian handicraft products faced unfavourable tariffs or restrictions when exported to Britain. This one-sided 'free trade' made it impossible for Indian handicrafts to compete on price.

  2. Deliberately promoting India as a raw-material supplier and finished-goods market: Colonial policy actively encouraged the export of raw materials (raw cotton, jute, indigo, etc.) from India to British factories, and the import of finished manufactured goods back into India, turning the terms of trade against India's own producers and crushing demand for home-grown handicraft products.

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