The Economy of Modern India, 1860–1970

New Cambridge History of India #3.3

by B.R. Tomlinson

This is the first comprehensive and interpretative account of the history of economic growth and change in colonial and post-colonial India. Dr. Tomlinson draws together and expands on the specialist literature dealing with imperialism, development and underdevelopment, the historical processes of change in agriculture, trade and manufacture, and the relations among business, the economy and the state. What emerges is a picture of an economy in which some output growth and technical change occurred both before and after 1947, but in which a broadly based process of development has been constrained by structural and market imperfections. Tomlinson argues that India has thus had an underdeveloped economy, with weak market structures and underdeveloped institutions, which has since 1860 profoundly influenced the social, political and ecological history of South Asia.

Genres: History, Economics, India

256 pages, Paperback

First published January 1, 1993

About the author

Professor Tom Tomlinson is an Associate Member in the Centre for Business History at the University of Glasgow.

Reviews

[Kavya]

Historian B.R. Tomlinson outlined the major economic debates regarding South Asia. He pointed out that while development economics talk much about encouraging development, there has been no clear understanding of why development does not occur (p10). Some who chose to engage in the debate include the South Asian economists who have a nationalist bent in their research.
Nationalist Dadabhai Naoroji is one early example of this endeavor.

The “imperial apologists,” the supposed opposite side of the debate, do not take the drain theory as seriously as the South Asian economists.
They make their case and show economic continuity in the case studies of several South Asian regions before and after colonialism. Tomlinson tended to agree and also pointed to the international changes in gold and silver prices to explain some of the changes in the 1920s. Certain South Asian economists have cited the worldwide depreciation of silver bullion in this time, which was designated by the Government of India for the currency of foreign trade, to prove colonial drain.
Tomlinson argued that moneylenders (mahajans) were not the sole reason for the agricultural problems experienced in certain areas. The colonial revenue system was set up unrealistically for certain zamindars and the peasants: The groups that held the rights to collect revenue were not involve themselves intimately with the production process. The peasants, in order to meet the revenue demands, borrowed from moneylenders. The moneylenders were very noticeable since most were Rajasthani Marwari outsiders. They were attacked in the 1857 revolt and the account books were publicly destroyed. (Interestingly, the economic conditions of the villages, i.e., whether they were linked to the outside economy in terms of credit, was an indicator of their political involvement in 1857: “communities involved most extensively in the revolt were led by village brotherhoods that had succeeded in maintaining their independence from outside incursions [on land titles through moneylending].” P49) Colonial government policy also targeted moneylenders. Compared to a complete overhaul of the revenue system, it was easier to limit money-lending activity.
Tomlinson acknowledged that there is a certain type of market system and indigenous consumption power in place in the twentieth century. Certain peasants also made profit in the 1880s till 1920s, which he argued was a benefit from participating in the global market. But he is cautious to suggest that this would have led to more positive developmentalist outcomes without colonial intervention. To answer to what extent has India or the field of development economics decolonized would require much more reading and work. But Tomlinson’s book is a good start.

[Michal Paszkiewicz · Rating 3 out of 5]

Rather unmemorable and lacks a particularly strong motif or conclusion. However, the book cannot be accused of not being thorough or well researched. The author has done an excellent job, but history of economy is probably just not quite interesting enough for most readers

[Brian · Rating 2 out of 5]

This book provides a thorough account of the colonial affects that India went through to shape is modern economy. The first two chapters are broken up into agricultural development of the period and the industrial development of the period. It clearly shows that there was subsistence agriculture but industrial scale was struggled to be achieved. This book is very fine economic analysis and while having the common methods of econometrics it does not become bogged down in them so it can be understood by those without a mathematical background. If you do have one though you will find some extra goodies within the book. The last chapter looks at how the countries economy developed between the 1920's to the 1970's and focuses on the struggles India faced once it was free of colonial domination. Overall this is a very thorough account and one worth taking a look at if you are interested in colonial India.