
A BRIEF HISTORY OF INDIA
128
Between 1860 and 1920, raw cotton, wheat, oilseeds, jute, and tea
were the major exports of the imperial Indian economy. While the main
export crops of the fi rst half of the 19th century—opium, indigo, cot-
ton, and silks—were traditional products, their export (with the excep-
tion of cotton) had depended largely on European enterprise and state
support. The main export crops of the late 19th and early 20th century,
however, were (with the exception of tea, a plantation crop) indigenous
crops produced by rural peasant communities as part of the peasant
crop cycle (Tomlinson 1993, 51). Raw cotton was the largest single
export item. Before 1850 most Indian cotton was exported to China;
after the 1870s, Indian cotton went to the European continent and to
Japan. The export of Indian wheat and oilseeds (as well as rice grown
in Burma) developed after the Suez Canal opened in 1869. By the 1890s
about 17 percent of India’s wheat was exported, and between 1902
and 1913 Indian wheat provided 18 percent of Britain’s wheat imports.
Jute, which provided the bags in which the world’s grain exports were
packed for shipment, was the most valuable Indian export during the
early decades of the 20th century. Tea production began in the 1830s,
and by the early 1900s Indian tea made up 59 percent of the tea con-
sumed in Britain.
British business fi rms received most of the profi ts of India’s late
19th- century export trade. British fi rms controlled the overseas trade
in Indian export commodities and also their shipping and insurance.
The secondary benefi ciaries of the export trade were Indian traders,
middlemen, and moneylenders. Such men facilitated the production of
export crops at the rural level and usually profi ted regardless of export
fl uctuations. Of all the participants in the export trade, peasant culti-
vators took the greatest risks and made the least profi ts. Local farmers
bore the brunt of the price and demand fl uctuations of exporting to
global markets, and as a result, rural indebtedness became a major
problem in the late century. Well into the 20th century peasant cul-
tivation, even of export crops, remained at the simplest technological
level. As late as the 1950s, peasants’ tools for agricultural production
were still “bullocks, wooden ploughs and unsprung carts” (Tomlinson
1993, 83).
Although agricultural exports were the major reason for imperial
India’s economic growth, the second half of the 19th century also saw
the beginnings of Indian industrial production if only on a small scale.
The fi rst Indian steam-powered cotton mill opened in Bombay in 1856.
In the 1870s–80s the Indian textile industry in Bombay expanded in
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