Deindustrialization in 18th and 19th Century India: Mughal Decline, Climate Shocks and British Industrial Ascent* David Clingingsmith Jeffrey G. Williamson Weatherhead School of Management Department of Economics Case Western Reserve University Harvard University 11119 Bellflower Road, Room 281 Cambridge MA 02138 Cleveland, Ohio 44106-7235 and CEPR and NBER 216-368-4294 617-495-2438
[email protected] [email protected] *We are grateful for advice and criticism from William Bernstein, Leah Platt Boustan, Huw Bowen, William Clarence-Smith, Greg Clark, Ron Findlay, Bishnupriya Gupta, Peter Harnetty, Debin Ma, Bob Margo, Patrick O’Brien, Kevin O’Rourke, Şevket Pamuk, Leandro Prados, Om Prakash, Ananth Seshadri, T. N. Srinivasan, Tirthanker Roy, Tony Venables, two anonymous referees for this journal and participants in the Harvard Economic History Tea and Workshop, the 5th World Cliometrics Conference (Venice: June 2004), the Stockholm School of Economics (Stockholm: October 2004), and the GEHN Conference on Imperialism (Istanbul: September 2005). We also thank Javier Cuenca Esteban and Bishnupriya Gupta for sharing their data. Clingingsmith acknowledges support from the Project on Justice, Welfare, and Economics at Harvard University. Williamson acknowledges support from the National Science Foundation and from the Harvard Faculty of Arts and Sciences. Abstract India was a major player in the world export market for textiles in the early 18th century, but by the middle of the 19th century it had lost all of its export market and much of its domestic market, primarily to Britain. The ensuing deindustrialization was greatest c1750-c1860. We ask how much of India’s deindustrialization was due to local supply-side forces -- such as political fragmentation and a rising incidence of drought, and how much to world price shocks.