The history of Indian industry perhaps dates back to the history of humankind. India's traditional economy was a blend of agriculture and handicrafts. Under British rule these handicrafts collapsed (de-industrialisation), modern industries began from the mid-19th century, and after Independence the Government guided growth through Industrial Policy Resolutions and Five-Year Plans.
1. Traditional Crafts of India
- According to Edward Baines, 'The birthplace of cotton manufacture is India where it probably flourished long before the dawn of authentic history.'
- Bernier, who visited India during the reign of Mughal emperor Shah Jahan, marvelled at the incredible quantity of manufactured goods.
- Tavernier, a French traveller, admired the peacock throne, carpets of silk and gold and mini carvings.
- Before mechanised industry, handicraft production was the second largest source of employment in rural India, next to agriculture.
- Traditional industry was known for textiles, woodwork, ivory, stone cutting, leather, fragrance wood, metal work and jewellery. Village artisans such as potters, weavers and smiths made articles for domestic use.
- Specialised goods for domestic and international markets: cotton textiles, muslin, wool, silk and metal articles. India was famous for its fine cotton and silk clothes.