Abstract
Economists have divided all economic activities that take place in an economy into three broad categories. In the first category are included all those economic activities that human beings have been performing since the beginning of civilization. These activities are where persons work with different elements of nature viz. agriculture, animal husbandry, fishing, etc. and are called ‘primary activities’. In the second category are included those economic activities where human beings work with manmade elements, such as manufacturing and processing. Through these activities, workers add value to natural resources by processing them or by transforming intermediate inputs and components into finished goods. These activities are described as ‘secondary activities’. Along with these economic activities, there are others in which human beings make improvements to the state of products and persons through a variety of intangibles. These activities are categorized as ‘tertiary activities’ or ‘services’. In economic analysis, these broad categories of economic activities are described as the three sectors of the economy.
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Notes
- 1.
- 2.
- 3.
See Aristotle (2001), pp. 936–940.
- 4.
- 5.
The term protean stage of industrialization was used by noted economic historian Hobsbawn (1954).
- 6.
See for this term Tilly and Tilly (1971).
- 7.
This term was used by Mendels (1972).
- 8.
The term nascent stage of capitalism has been used in Levine (1977).
- 9.
Perlin (1983) used the term to describe a transition from subsistence manufacturing to commercial manufacturing.
- 10.
Term proto-industry was used by Freudenberger and Redlick (1964).
- 11.
See for details Freudenberger and Redlick (1964).
- 12.
- 13.
The anthropologists describe the cultures that include the knowledge of crops and animals as Neolithic cultures, see Daniel (1943).
- 14.
- 15.
For the understanding of the process of transformation of societies to different types of farming see Boserup (1965).
- 16.
For the appropriate meaning of kauf and verlag system, see Kriedite et al. (1981).
- 17.
- 18.
To know about the criticism of the term proto-industrialization being used as stage in the evolution of modern manufacturing see Freudenberger and Redlick (1964).
- 19.
- 20.
- 21.
- 22.
- 23.
- 24.
For this idea see, Wrigley (1988), pp. 4–7.
- 25.
For the understanding of Smithian Process of Growth and Premethien Process of Growth see Wrigley (1988).
- 26.
The concept of Schumpeterian Growth Process has been discussed in detail in Parker (1982).
- 27.
For the fact given here regarding the East India Company see Gardner (1971). Factory at that time was referred to the office of the factor, i.e., agent of the company along with a warehouse, which was used to keep merchandise purchased from Indian sources to be shipped to England.
- 28.
The incident has been narrated in greater detail in Malabari (1910).
- 29.
These facts have been obtained from Powell (1892).
- 30.
For the working of factories owned by the East India Company see Hussain (1958).
- 31.
- 32.
The concept of de-industrialization has been used to describe the experience of Indian manufacturing. Contrary to British experience where industrial revolution occurred through the process of transformation of traditional flexible manufacturing into modern industry. In India the traditional flexible manufacturing experienced decline which led to the shifting of craftsmen to agricultural activities. This movement of work force from manufacturing to agriculture is described as de-Industrialization, see. Thorner and Thorner (1962) and Morris (1987).
- 33.
The name of the mill established by Cowasjee Davar was Bombay Weaving and Spinning Company. Before the birth of cotton textile mills in Bombay, cotton manufacturing was experimented in Calcutta by Bereath Cotton Mills and also at Pondicherry, but both the cotton mills could not succeed see Gandhi (1930), p. 52 and Mehta (1954).
- 34.
George Aukland was a Scot, who was an ex-officer of the British Navy and had experience of running coffee plantations in Ceylon (Sri Lanka), see Buchanan (1966).
- 35.
Economists like Rostow evolved the concept of leading sector, leading sector is that part of the industrial economy of an economy which while growing also affect, the growth of other economic activates through technological linkages. See Rostow (1957) and Rostow (1963). Later on it was observed that the railways acted as a leading sector in the development of the American economy see Fogel (1964).
- 36.
However there exists a long debate amongst the economic historian regarding the exact dating of the British industrial revolution. But some of the historians believe that the industrial revolution in England began in 1760. For details regarding this debate see Chap. 3 of the present book.
- 37.
American, Samuel Morse had made a perfect electric telegraph along with the codes in 1838. It was introduced along the stretch of railway out of London in 1839 see Cairncross (2001), p. 23.
- 38.
In 1858 it took forty days for news of Indian Mutiny to reach London, by 1870 after the establishment of several telegraphic lines which connected India to London, the messages from India to England could be sent in hours, see Solymar (1999), p. 3.
- 39.
The founding father of scientific management Fredrick Winslow Taylor took the of idea division labour to its logically stretchable level. He believed that complex manual operations could be divided into simple routine operations and furthers these divided tasks can be done scientifically by precise measurement of every movement involved and thus eliminating all inessential movement; see Taylor (1919, 1885), Nockolds (1959) and Seth (2000), pp. 70–71.
- 40.
With the separation between ownership and control in large American enterprises, there emerged a class of professional managers who managed the enterprises. This phenomenon has been described as managerial revolution; see Marris (1964). It was observed by some of the scholars that the Visible Hand of the management has been replaced by the invisible hand of the market process, see Chandler (1977).
- 41.
See Kondratieff (1979), pp. 519–562.
- 42.
- 43.
- 44.
There are several examples in history to substantiate this point that sometimes new waves alter the course of polity as well as society. For instance the debates regarding Corn Laws in England during 1830–1840, and spread of Luddaism during industrial revolution in England to arrest the decline of old occupations (like the occupation of handloom weavers) from the emergences of machines.
- 45.
See List (1841).
- 46.
See Freeman (1981).
- 47.
- 48.
For the concept “Social System of Innovation”.
- 49.
See Lundvall and Pyka (ed) (2007), pp. 872–881.
- 50.
See Lundvall and Pyka (ed) (2007), pp. 882–895.
- 51.
- 52.
The justification for the policy of free trade was provided by Adam Smith in his theory of absolute advantage and by Ricardo in the theory of comparative advantage. Their theories are part of all important text books on Trade Theories.
- 53.
These facts have been taken from New Cambridge Modern History of Vol. IX pp. 56–57.
- 54.
- 55.
The stage of primary import substitution refers to that particular stage in the process of growth of manufacturing of a country, when it starts processing raw materials produced by its primary sector, and develops capability when there is no need to import such products.
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Seth, V.K. (2018). Introduction. In: The Story of Indian Manufacturing. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-5574-4_1
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