INDIAN INDUSTRIES

Dominion, Volume 12, Issue 196, 14 May 1919, Page 8

INDIAN INDUSTRIES

DANGER OF FOREIGN PENETRATION DRASTIC PROPOSALS Since 191G a commission has been engaged inquiring into industrial conditions iu India. The chairman is Sir Thomas Holland, and Ike report, which makes a Ulue Book' of 500 pages besides index, is now issued. The constructive- proposals depended on the acceptance of two principles—that in future government must play an active part in tho industrial development of_tho country with tho aim oi malting India more self-contained, in respect ot 'nen and material, und, secondly, that it is impossible for Government to undertake that part unless provided with adequate administrative equipment and forearmed with reliable scientific and technical advice. The report proposes tho creation of an enormous additional administration in India. There would be created Imperial anl provincial Departments of Industries and an Imperial Industrial Service. The actual administrative work would be almost entirely docentralised, and would devolve on local governments. Tho performance of these duties would necessitate the employment of a large staff of officers whoso qualifications would primarily depend upon a knowledge of mechanical engineering, and the formation of an Imperial industrial service is suggested in order to safeguard Government against the dangers and difficulties of casual recruiting. Industrial Potentialities, The opening chapters of the report deal with India ns an industrial country, g her present position, and her potentialities. They show how little the march ot modern industry has affected the great bulk of tho Indian population, which remains engrossed in agriculture, with antiquated methods of cultivation. Attention is drawn to the shortage and general inefficiency of Indian labour and the lack of an indigenous supervising agency. Proposals aro made for the better exploitation of the forests and fisheries. India, it is stated, produces nearly all the raw materials for the requirements of a modem community, but is unable to manufacture many of the articles and materials essential alike in times of peace an.! war. The introduction of modern methods of agriculture is advocated, and, in particular, of labour-saying machinery. Greater efficiency in cultivation and in preparing produce for the market would follow, labour now wastefully employed would be set free for industries, and the establishment of shops for the manufacture and repair of machinery would lead to the growtlrof a huge engineering industry. After examining the resources for generating power, the report says the coal of India is generally of a poor quality, and tho radius within which it can be economically used is accordingly limited. Moreover, the extension of metallurgical industries already started involves a severo attack on our visible supplies of coking coal. The Commission recommends a'special survey of the coal position in India. Commercial Education. Chapters dealing with "The Indian in Industries" discuss measures designed to improve the efficiency of the Indian artisan and to encourage the educated Indian to take part in industrial enterprise. The genoral aversion from industrial pursuits of the educated Indian is acribed to hereditary predisposition, accentuated by an unpractical system of education. A complete revolution in the existing methods of training is proposed. Special pioposals are made for commercial and mining education, while the future establishment of two Imperial colleges is adumbrated, ono for the highest grade of engineering and the other for metallurgy. To ensure the maintenance of close relations between the training institutions and tho world of industry the general control of technical education should bo transferred to the Department of Industries. - . • The remaining chapters of the report deal more specifically with Government intervention -in industries. Useful, up-to-date information on commercial and industrial matters—the Committee sayis essential, both for the Government and for privnto merchants and industrialists. A scheme is propounded for collecting enoh information and for mating it availablo to tho public. Tho purchase of Government stores in tho past —it is stated—has been conducted in such a way as to -handicap Indian manufacturers in competing for orders, and to retard industrial development in India. The Commission proposes that the Depnrtment of Industries should be . in charge of this work, . and that orders should not be placed with tho Stores Department of the India Office until the manufacturing capabilities, of India have first been exhausted. Industrial co-operation is discussed with,reference to small and cottage industries, and the question of the effects of railway rates on industries is considered. Disorganisation of Capital, . Tho Commission lays emphasis on the disorganisation of Indian capital and its shyness in coming forward for industrial development. -There is no lack of money in the country, yet the industrialist cannot obtain the usq of it except on terms so exorbitant ns to devour a large part of his profits. There is a crying necessity for the extension of banking facilities in the mofussil. The Commission is disposed to favd'nr the establishment of an industrial bank or banks; but it considers that the appointment of an expert committee is necessary to deal with this subject, and asks. Government to take action at an eariy date. As an "interim" measure, a scheme ia propounded for tho provision of current finance to middle-class industrialists, by which the banks would open cash credits in favour of applicants approved by the Department of Industries on the guarantee of Government. Need of Government Intervention. To sum up, the Commission finds that India is a country rich in i'aw materials nnd in industrial possibilities, but poor in manufacturing.accomplishment. The deficiencies in her industrial eysteni aro such as to render her liable to foreign penetration in time of peace and to serious dangers in time- of war. Her labour is inefficient, but for this reason capable of vast improvement. Sho relies almost entirely on foreign sources for foremen and supervisors; and her intelli-. gciitsia havo yet to develop a xight tradition of ■ industrialism. Her stores of money lie iuort and idle. The uecessity of securing thij economic safety of the country and tho. inability of the. people to secure, it without the co-operation and stimulation of Government impose, therefore, on Government a policy of energetic intervention in industrial affairs; and to discharge the multifarious activities which this policy demands, Government must be provided with a suitable industrial equipment in the form of Imperial nnd Provincial Departments of Industries. The recurring cost of the proposals is estimated at J?s. SG lakhs (,£'573,270; they involve a capital expenditure of Us. 150 lakhs, mainly on educational institutions, nnd a further capital outlay of Us. Gfi lakhs is anticipated for future developments. The Commission considers that this expenditure may-bo worked up to at the end of a period of seven years. •