Shifts in Manufacturing

While Middle Eastern and Asian countries continued to produce manufactured goods, these regions’ share in global manufacturing declined.

Shipbuilding in India and Southeast Asia Shipbuilding initially saw a resurgence in India at the end of the 17th century, largely due to the political alliances formed between India and western countries. However, Indian shipbuilding ultimately suffered as a result of British officials’ mismanagement of resources and ineffective leadership during the period of British colonization in the late 17th and 18th centuries. In 1830, Britain designated ships of the British East India Company as the Indian Navy. The Indian Navy was disbanded by 1863, however, when Britain’s Royal Navy took complete control of the Indian Ocean.

Iron Works in India British colonial rule in India also affected the country’s mineral production. During the period of company rule—British East India Company control over parts of the Indian subcontinent from 1757 to 1858—steep British tariffs led to the decline of India’s ability to mine and work metals. The British also began to close mines completely, especially after the Rebellion of 1857, because they perceived that the mines were being used to extract lead for ammunition.

The ongoing fear of another uprising led to the Arms Act of 1878, which restricted not only access to minerals, but also to the subsequent production of firearms. British colonizers limited India’s ability to mine and work metals in areas such as the mineral-rich state of Rajasthan. By the early 19th century, most of the mines in Rajasthan were abandoned and the mining industry was extinct.

Even though British colonial rule ended in 1948, mining and metalworking remained practically nonexistent in India until the early 20th century. Lack of technological innovation after so many years of abandoned mines led to a relatively crude, labor-intensive method of mining, which created the false impression that India’s mineral resources were inaccessible. (Connect: Identify the similarities in how Britain treated its colonies in South Asia and its colonies in the Americas. See Topic 4.8.)

Textile Production in India and Egypt India and Egypt were both among the first to engage in the production and trade of textiles. Just as it stifled the production of ships and iron, British colonization also affected textile production in India. As the textile industry flourished in India, it undermined the British textile mills in Britain, specifically in Lancaster. The owners of the Lancaster textile mills pressured the British government in India to impose an “equalizing” five percent tax on all textiles produced at the more than 80 mills operating in Bombay, thus undermining their profitability.

Egypt’s textile industry, too, experienced difficulties as a result of Europe’s worldwide economic reach. In the 18th century, Egypt exported carpets, silks, and other textiles to Europe. By the mid-19th century, however, the huge growth in European textile production had changed matters. Egypt had lost not only its export market in textiles, but much of its domestic market as well.

KEY TERMS BY THEME

ECONOMY: Railroads

ECONOMY: Manufacturing Trans-Siberian Railroad

human capital

company rule