both his courage and his self-confidence. At the time , economic history
was still in its infancy as a genre. Even in the west, there was no consensus
about how such a history should be written, what topics should be cov-
ered, or what evidence used. Yet for Dutt, such a study was simply a
logical outgrowth of the paradox he had uncovered in his earlier book: in
what sense could British rule be regarded as progressive for India, when its
result had been the pauperization of the vast bulk of the population? In the
preface to the first volume of the Economic History of India, Dutt posed the
paradox this way: “Englishmen can look back on their work in India, if
not with unalloyed satisfaction, at least with some legitimate pride.” They
had brought peace, western education, and modern institutions. “On the
other hand,” he continued, “No open-m inded Englishman contemplates
the material condition of the people of India under British rule with equal
satisfaction.” Poverty was ubiquitous and famines were endemic. In the
last quarter of the century, the two together had “carried off fifteen million
people,” a number equal to half of the population of England itself. Dutt
considered and rejected the operation of extraneous and indigenous
factors, such as (1) overpopulation, (2) the feckless ness and improvidence
of Indian peasants, (3) the debilitating effect of usury and moneylenders,
and (4) the effects of climate and drought. The impoverishment of India,
he concluded, was substantially the result of British policy itself. Here
Dutt issued an indictment that goes beyond Naoroji’s preoccupation with
fiscal drain. “India, in the eighteenth century, was a great manufacturing
as well as a great agricultural country,” he noted, “and the products of the
Indian loom supplied the markets of Asia and Europe. ”
99
From the moment of British hegemony, however, she was determined to
put an end to this state of affairs. Indian weavers were corralled into EIC
workshops. Indian silks and muslins were excluded from British markets,
while Lancashire goods were admitted into India duty-free. The result
was to destroy Indian manufacturing, first in textiles, then in a host of
other trades and crafts. British policy decided that India was to be trans-
formed into a producer of raw materials, such as cotton, indigo, tea, and
opium for British industry and re-export. At the same time, it would
become a consumer of Britain’s cheapest, lowest-grade manufactured
goods. The primary products that India exported were to be produced
either by an impoverished, economically dependent peasantry or by large
plantations financed by British capital, with profits expatriated to the
mother country. As these enterprises proliferated, it became evident that
they contributed little to the healthy development of the Indian economy.
99
DEHI, I: v, II: vi, vii, viii. For a further analysis of these volumes, see Gayan Prakash,
Another Reason: Science and the Imagination of Modern India (Princeton, 1999), 181–7.
308 Indian liberals and Greater Britain