The first Indian railway was introduced in 1853 between Mumbai and Thane during the Governor-Generalship of Lord Dalhousie. The successive Governor-Generals made a tall claim that railways would bring progress and development in India. In reality, it was used to exploit the resources of India for the benefit of the English. The railways served the British government in the following ways:
- Investment of British capital in Indian railway companies.
- Raw materials were transported to ports through railways for export to England.
- Railways benefited heavy industries in England, such as engineering, iron, and steel.
- Railways were used to bring English products, especially clothes, to Indian markets.
- Railways were utilised for strategic purposes by the British.
Negative Impact of Railways
1. Since the raw material was mostly exported, especially after the development of railways, it became costlier and out of reach of Indian manufacturers. The finished goods of England also reached Indian markets quickly, thanks to the railways. The Indian market was completely monopolised by English traders and manufacturers. The traditional industries, already in trouble, got the final blow from railways.
2. Railways caused rapid industrialisation in England. With the development of railways, the other associated industries like iron and steel, transport, mining, etc. also developed. But nothing happened in India. All the equipment required for railways was imported from England. Till 1910, the rail track was imported from England, and till 1940, engines and other machines were imported from England.
3. The capital invested in the railways was all English. To attract foreign investment in railways, a 5 per cent guaranteed 'dividend' was given to the investors who invested their money in the 'East India Railway Company' and 'Great Indian Peninsular Railway Company.' The burden of the guaranteed dividend fell on Indian taxpayers. Mahadev Govind Ranade and Ramesh Chandra Dutta believed that the railway was an important means of the drain of wealth and refused to believe that it brought any development in India. Tilak also questioned the utility of railways, telegram, and road.
4. Grains were brought to port cities from rural areas and then exported to other countries. The export of grain made it costlier in the domestic market, and even during normal monsoon days, a shortage of food grains was noticed in many places.
5. Due to railways, at many places, the peasants were encouraged to grow cash crops, resulting in the shortage of food crops.
6. Due to the focus on railways, other sectors like irrigation were neglected. Till 1902-03, only 75 crore rupees were spent on irrigation, whereas till 1905, 359 crore rupees were spent by the government and rail companies. The nationalists raised this question from various platforms. They argued that irrigation is more profitable as it earns 6 to 9 per cent profit per annum. The railway started earning profit only from 1900 onwards. Some nationalist leaders also argued to develop canal transportation, which would be much cheaper. Despite huge investment, only 2,100 miles of railway tracks were constructed till 1899.
Positive Impact of Railways
1. The railways connected different parts of India, which helped trade and commerce.
2. The people of different parts could meet each other, helping in the emergence of nationalist feelings.
3. The rural areas could be connected with the cities, and the social orthodoxy was challenged.
4. It provided employment opportunities. Many Indians at least got jobs at lower posts. The railway stations also created employment opportunities.
0 Comments