3.2.6 Indian Entrepreneurs Abroad

Description

Quick Overview

The section discusses the significant role Indian entrepreneurs played in global trade, especially in financing and supporting agricultural production in various regions.

Standard

This section highlights how Indian traders and moneylenders ventured abroad, particularly in the 19th and early 20th centuries, to help finance agriculture and trade in different markets. It also examines the decline of Indian textile exports and the rise of raw material exports, providing context to the global economic shifts.

Detailed

In this section, we explore the critical contributions of Indian entrepreneurs, particularly the Shikaripuri Shroffs and Nattukottai Chettiars, to the global economy. These bankers facilitated export agriculture by providing financial support and developing systems for money transfer across long distances. The section also outlines the historical context in which Indian textiles faced competition due to industrialization in Britain, leading to a significant decline in exports. Instead of finished goods, India began exporting raw materials while maintaining pivotal roles within colonial economies. Understanding these dynamics is crucial for grasping the complex interplay between colonization, trade, and globalization.

Key Concepts

  • Indian Entrepreneurs: Played a key role in financing agriculture and trade globally, especially the Shikaripuri Shroffs and Nattukottai Chettiars.

  • Decline of Textiles: British tariffs and industrialization led to a substantial decline in Indian textile exports to below 3% by the 1870s.

  • Rise of Raw Materials: The shift from finished goods to raw materials drastically changed India's role in the global economy.

Memory Aids

🎵 Rhymes Time

  • Shroffs and Chettiars, so bold and bright, financing trade, bringing crops to sight.

🎯 Super Acronyms

F.T.C - Financing Trade Connectivity.

🧠 Other Memory Gems

  • Remember R-E-R: Raw Materials Exported as Textiles Declined.

📖 Fascinating Stories

  • Once in a bustling market, the Shroffs helped farmers export their best crops, and as competition grew, the clothmakers changed their dreams from exporting textiles to exporting raw materials.

Examples

  • The Shikaripuri Shroffs financed export agriculture in Southeast Asia, facilitating trade and enhancing economic connections.

  • Indian textile exports, which constituted around 30% of global exports in 1800, faced heavy tariffs in Britain, resulting in a decline below 3% by the 1870s.

Glossary of Terms

  • Term: Entrepreneur

    Definition:

    An individual who organizes and operates a business, taking on financial risks to do so.

  • Term: Capital

    Definition:

    Wealth in the form of money or assets used to start a business or invest.

  • Term: Tariff

    Definition:

    A tax imposed on imports or exports, often used to regulate foreign trade.

  • Term: Export Agriculture

    Definition:

    Agricultural production aimed at producing goods for export rather than domestic consumption.