The First Indian Factories

The first cotton mill in Bombay came up in 1854 and went into production two years later; by 1862 four mills were working. Around the same time, jute mills came up in Bengal (the first in 1855). In north India, the Elgin Mill was started in Kanpur in the 1860s, and the first Ahmedabad cotton mill soon after; by 1874 the first spinning and weaving mill of Madras began production.

The Early Entrepreneurs

Industries were set up by varied people, many of whom had first earned wealth in trade with China (financing and shipping the opium trade):

  • In Bengal, Dwarkanath Tagore made his fortune in the China trade and set up six joint-stock companies in the 1830s–40s.
  • In Bombay, Parsis like Dinshaw Petit and Jamsetjee Nusserwanjee Tata built huge industrial empires from China exports and raw-cotton shipments; J.N. Tata set up the first iron and steel works at Jamshedpur in 1912.
  • Seth Hukumchand, a Marwari, set up the first Indian jute mill in Calcutta in 1917, and the family of G.D. Birla also traded with China.

But as colonial control tightened, Indian merchants were barred from trading with Europe and edged out of shipping. Till the First World War, European Managing Agencies (Bird Heiglers, Andrew Yule, Jardine Skinner) controlled a large sector of Indian industry, mobilising capital and making decisions, while Indian financiers often only provided the capital.

Where Did the Workers Come From?

Factories needed workers, and the demand grew: there were 584,000 workers in Indian factories in 1901, and over 2,436,000 by 1946.

In most regions, workers came from the districts around. Peasants and artisans who found no village work went to the industrial centres — over 50 per cent of Bombay's cotton workers in 1911 came from Ratnagiri, and Kanpur's mills drew hands from Kanpur district. Millworkers often moved between village and city, returning home for harvests and festivals.

Getting a job was difficult — the numbers seeking work always exceeded the jobs. Industrialists usually employed a jobber to get new recruits: often a trusted old worker who brought people from his village, got them jobs and helped them settle. The jobber thus gained authority and power, and began demanding money and gifts for his favour.

Questions and Answers

Q1. When and where did the first cotton mill and the first jute mill in India come up? Ans. The first cotton mill came up in Bombay in 1854, going into production two years later. The first jute mill came up in Bengal in 1855.

Q2. Who were some of the early Indian industrial entrepreneurs? Ans. They included Dwarkanath Tagore in Bengal, the Parsis Dinshaw Petit and J.N. Tata in Bombay (Tata set up the first iron and steel works at Jamshedpur in 1912), and the Marwari Seth Hukumchand (first Indian jute mill, Calcutta, 1917). Many had first earned wealth in the China (opium) trade.

Questions and Answers (continued)

Q3. What was the role of the European Managing Agencies? Ans. Till the First World War, European Managing Agencies (like Bird Heiglers, Andrew Yule and Jardine Skinner) controlled a large sector of Indian industry. They mobilised capital, set up joint-stock companies and managed them, often with Indian financiers providing the capital but the Europeans making the decisions.

Q4. Who was the jobber and what power did he hold? Ans. The jobber was usually a trusted old worker employed by industrialists to recruit new workers. He brought people from his village, got them jobs and helped them settle — and so gained authority and power, even demanding money and gifts for his favour.

Questions and Answers (continued)

Q5. Where did the workers in Indian factories mainly come from? Ans. Mostly from the districts around the industrial centres — for example, over 50 per cent of Bombay's cotton workers (1911) came from Ratnagiri. Peasants and artisans with no village work migrated to the mills, often returning home for harvests and festivals.