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Industrial development is today considered as prerequisite for modern economic development.That is why all countries of the world, whether big or small, rich or poor, and developed or developing, are channelising their resources to promote rapid indus­trialisation. Before the rise of the modern industrial system India had a flourishing state of cottage and household industries and Indian manufacturers had a world-wide market. Indian muslin, cotton and silk fabrics, calicoes, artistic wares etc. were in great demand the world over.The impact of the British connection and industrial revolution led to the decay of traditional handicrafts. Not only the Indian handicrafts traditional handicrafts. Not only the Indian handicrafts failed to match the machine-made goods in quantity and quality but the British policy of encouraging the import of manufactures and export of raw materials from India shook the very founda­tion of the traditional industries.It is under this callousness that no industry on modern lines could start in the country till 1853, seven decades after the industrial revolution. Despite this initial beginning the pace of industrial growth remained very slow till independence when new era of industrial develop­ment began with the launching of Five Year Plans.
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