'De-industrialisation' is an argument that British India, which started wit
h a large and well-developed manufacturing tradition, saw a decline in its
traditional industry during the colonial period, and that the modern indust
ry which grew in its place did not compensate for the loss in employment an
d income. This essay presents an alternative view, which suggests that trad
itional industry did not decline that it changed in organisation and charac
ter, and that these changes shaped the future course of Indian industrialis
ation.