- Concept: Deindustrialization refers to the quick collapse of Indian handicraft and artisanal industries.
- This happened largely due to British policies.
- Effects on Traditional Industries:
- Competition from cheaper imported manufacturers from Britain.
- Imposition of free trade on India.
- High import duties imposed by Britain and European countries on Indian goods.
- This led to the virtual closing of European markets to Indian manufacturers after 1820.
- Ruined artisans failed to find alternative employment.
- They crowded into agriculture as tenants, sharecroppers, and laborers.