History
Poverty and low wages were among the indirect products of colonial rule. Romesh Dutt traced a decline in standards of living to the nineteenth-century deindustrialization of the subcontinent and the narrowing of sources of wealth which followed:
India in the eighteenth century was a great manufacturing as well as great agricultural country, and the products of the Indian loom supplied the markets of Asia and of Europe. It is, unfortunately, true that the East Indian Company and the British Parliament ... discouraged Indian manufactures in the early years of British rule in order to encourage the rising manufactures of England . . . millions of Indian artisans lost their earnings; the population of India lost one great source of their wealth.
Radhakamal Mukerjee and Romesh Dutt directed attention to the deepening internal differentiation of Indian society appearing in the abrupt articulation of local economies with the world market, accelerated urban-rural polarization, the division between intellectual and manual labor, and the toll of recurrent devastating famines.
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