But the Britishers followed a policy of systematic de-industrialisation by creating circumstances conducive to the decay of handicraft industry and not taking any steps to promote modern industry and reduced India to a mere exporter of raw material and importer of finished goods.
The following points bring forward the state ofthe industrial sector at the eve of independence .
(i) Decay of Handicraft Industry The traditional handicraft industry in India enjoyed
worldwide reputation, but the British misrule in India led to the decline of Indian handicraft industry. The Britishers adopted the following policies to systematically destroy the handicraft industry.
(ii) Discriminatory Tariff Policy of the State The Britishers followed a discriminatory tariff . polity by allowing tariff free exports of raw material from India (to provide for the requirements of their industries in Britain) and tariff free import of British Industrial products (to promote British goods in India), hut placed a heavy duty on the export of handicraft products. So, Indian,handicraft products started loosing their domestic as well as foreign markets.
(iii) Competition from Machine-made Products Machine-made products from Britain were cheap and better in quality than the handicraft products. This competition forced many a handicrafters to shut down their business.
(iv) Introduction of Railways in India The Britishers introduced Railways in India, to expand the market of its low priced industrial products. Consequently, the demand of high-priced handicraft products started to fall, thus leading to the downfall of handicraft industry.