INDIA

Evening Post, Volume CXIX, Issue 98, 27 April 1935, Page 26

INDIA

ECONOMIC FUTURE

DANGERS OF INDUSTRIAL-

ISATION

Sir George Schuster delivered the Sir George Birdwood Memorial Lecture before the Indian section of the Royal Society of Arts in London recently. He dealt with the present currents of Indian economic life and: with the prospects' of future development, states the "Manchester Guardian.'" There was. a great , need,, said Sir, George, for policies which would in-; crease .the national wealth of India; but these would be .valueless unless they also: secured proper distribution of that wealth. The greatest need ./of all was to raise the standard of living of the masses of the people., ' < India had been caught in the nexus of international trade, with two results; She could hot lose her export markets without disaster to- the masses of the Cultivators who relied on producing a surplus' of cr.ops which' India- herself could not consume; and Indian culti-: vators' fortunes-: were affected by change in the rest of the w*rld.. India had been relatively fortunate in finding continued outlets for her main staple crops, but there was a serious doubt whether India's position was secure for the future; < : ; ; DIFFICULTIES BEFORE INDIA. - The tendency to increasing economic nationalism would hit India : severely; and the falling birth-rates of Western civilisations would affect the continuance of the expansion of the demand for India's primary products. In :many countries, too, the mechanisation of agriculture and improvements in methods had. cheapened production and increased output. India had'hardly kept pace ; with these developments; and her competitive position had certainly hot improved. ~; :' ' ' ; ■ An attempt- by India to become nationally self-sufficient could* not offer an adequate substitute for the loss-of agricultura.l employment if her export markets ..were lost. In the case pf cotton, for example, figures • indicated that even if all. icotton .goods now imported were made in India' from Indian cbtton, India .would, still have : a surplus of nearly two. liiillion -bales for export. In considering employment:in- cotton mills, the increase of manufacture from 1000 million, yards before the- war ■•'to 3000 .rnillibn yards in r 193.3 had,. only meant employment .of ISO'ooo' .extra men.r '• '•' ', ." "■■ :,.-;/; ■;"•'' -.' ■ >:;;' :: He was'concerned; lest the way ,in which industrialisation; was being carried out might do grave harm to Indi^ by stimulating the (preation of huge urban industrial concentrations on Western lines, with' all; their evils. of bad ;health ; and overcrowding. India must raise the standard of living of .her own ,peoples so as to cphsume more of her own agricultural products, while industrial development was needed' to get balanced economy. In aiming at security, in . the' British market cotton was a good illustration both of the • need for action and of the right kind of action. Here India was being-faced with a new competition, while previous customers showed- a tendency to'want longer stable varieties. Above all, India's position of de^pendence on-Japan-was ; uncomfortable. Two things Avere necessary—to. grow more cottqn ,of general-: use, and to develop a broader basis of demand for the shorter-staples. . - . , . The Indian Central Cotton Committee had, conducted.:-a'very.' thorough programme of research and!. experiment ■ scientific institutes in ; tancashire— t or which there was )no parallel elsewhere'

in the world—in order to evolve methods for utilising the shorter staple , cotton, which must still remain a large i part of the Indian crop. This scientific work had been accompanied by an organised campaign of publicity and propaganda for Indian cotton among the mills, and those responsible for this work had been surprised at the results. They now saw such wide possibilities of new openings for Indian cotton that, even though they were very cautious men, they would not put any definite limit on the extent to which the demand might grow. All this scientific research work which is being done in Lancashire, discovering qualities hitherto unsuspected in Indian cotton, may be of immense benefit to India, not merely as aiTordmg an 'increasing outlet in the British market but as strengthening its position in other markets also. India stands to gain incalculably from having the resources and experience of British1 industry mobilised in her interests. MUTUAL BENEFIT. But if India's trade was to be maintained either with England or with any other country, it must be on a basis of exchange and mutual benefit. Any improvement in the prices of Indian cotton which had occurred since the worst point of the depression has been largely dependent on the priceraising and crop-restriction policy of the United States. President Roosevelt had recently announced that - his Government was working out a plan for an international scheme for regulating cotton production and would approach the other producing countries. Whether the Indian Government agreed to co-operate or not, the effects of their decision would extend beyond cotton alone. To raise the Indian standards of con-

sumption it was necessary somehow or other to get the rural masses-- out' of their present rut of low standards. "I have always desired to see experiments started in developing a selected area in each province on a balanced economy with an intensive effort at improving standards of living. Such experiments might serve as a demonstration and give experience on which a wider policy could be' developed When I use the expression 'balancer* economy' I mean that I should like to sec agriculture supplemented by moderate-sized industrial establishments on a sufficient scale to provide a sound commercial basis, but set down away from large towns so that the workers could still keep in touch with the land. There might be in each : unit i a small cotton mill, a sugar factory, and minor industrial establishments of other kinds."