Dark History of Indian Railways: An Exploitative Legacy

The Exploitative History of Indian Railways

The development of railways in India is often depicted as a benevolent gift from British colonial authorities. However, this narrative conceals the significant costs endured by the Indian populace. The railways were constructed primarily to serve British economic interests, leading to immense hardships for the people of India.

The Exploitative Agreements

In 1849, the British colonial Government of India entered into a highly favorable agreement with two railway companies: the East India Railway (EIR) and the Great Indian Peninsular Railway (GIP). This agreement imposed several burdens on India:

• Land Acquisition: The government was responsible for acquiring land at its expense, which was then handed over to the railway companies free of charge.
• Guaranteed Returns: The companies enjoyed an assured 5% return on their capital, irrespective of their profitability.
• Refund on Termination: If a company chose to cease operations, the government had to reimburse all expenses incurred by the company.
• Purchase Terms: If the government wished to purchase the railway line, it would only do so based on the market value of the company’s shares after 99 years.

The Motivations Behind the Railways

The primary motivation for constructing railways in India was economic. British industries, particularly the Lancashire cotton mills, sought to access cotton-producing regions efficiently. Railways enabled the transportation of raw cotton and facilitated the movement of troops to safeguard British interests and quell rebellions.

Political Influence

The influential railway lobby in Britain, with substantial representation in Parliament, advocated for these exploitative terms. By 1860, there were 186 directors from various railway companies in the British Parliament, ensuring that the government of India could not oppose these terms.

The Realities of Railway Construction

From 1850 to 1898, India paid £126.6 million in guaranteed interest to the railway companies. Despite this substantial financial burden, the railway system remained disorganized and exploitative. The absence of a central plan resulted in a network built to meet British economic and military needs, rather than a cohesive national strategy.

Exploitation and Segregation

The railway system was characterized by exploitation and racial segregation:

• Monopolistic Practices: Large territories were allocated to single companies, resulting in inflated freight and passenger rates.
• Racial Segregation: Europeans traveled comfortably in less crowded carriages, while Indians endured overcrowded and deplorable conditions.
• Employment Discrimination: Higher-paying positions were reserved for Europeans, subjecting Indians to systemic racial discrimination.

Economic Exploitation

The railways primarily aimed to generate a market for British railway-related manufacturers. Most equipment was imported from Britain, and Indian workshops were prohibited from manufacturing railway engines, despite their capability. This ensured that the economic advantages of railway construction were predominantly enjoyed by British industries.

The Unintended Benefits

While the railway network did provide benefits like improved communication and famine relief, these were unintended outcomes rather than the primary goals. British investment in railways was self-serving, as highlighted by the stark contrast between investments in railways and irrigation, which could have greatly benefited Indian agriculture.

Conclusion

In conclusion, the railways in India were far from a benevolent gift from British colonial authorities. Every mile of railway laid was financed by the ordinary Indian, marked by immense struggle and injustice. The narrative of the railways as a gift requires re-examination to acknowledge the true costs borne by the Indian population.

Frequently Asked Questions (FAQs)

Q1. What was the main purpose of the railways in colonial India?
Answer: The primary purpose of the railways in colonial India was to serve British economic interests, facilitating the transport of raw materials and troops rather than benefiting the Indian populace.

Q2. How did the British railway agreements affect India?
Answer: The British railway agreements imposed significant financial burdens on India, requiring the government to cover costs while ensuring guaranteed returns for the railway companies, which exploited the Indian economy.

Q3. What were the conditions of Indian passengers on the railways?
Answer: Indian passengers faced overcrowded and poor conditions, while European passengers traveled in comfort, highlighting the racial segregation inherent in the railway system.

Q4. Did the railways provide any benefits to India?
Answer: While the railways did improve communication and aided famine relief, these benefits were unintended outcomes of a system primarily designed for British exploitation.

Q5. How did railway construction impact India's economy?
Answer: Railway construction led to economic exploitation, as most materials were imported from Britain, and local industries were sidelined, limiting India's economic growth.