Madras Presidency - Trade, Industry and Commerce

Trade, Industry and Commerce

The trade of the Madras Presidency comprised that of both the Presidency with other Provinces and its overseas trade. External trade made up 93 percent of the total with internal trade making up the remainder. Foreign trade accounted for 70 percent of the total while 23 percent was inter-provincial. In 1900–01, imports from other provinces of British India amounted to Rs. 13.43 crores while exports to other provinces amounted to Rs. 11.52 crores. During the same year, exports to other countries reached Rs. 11.74 crores while imports were valued at Rs. 6.62 crores. At the time of India's independence, imports of the Presidency amounted to Rs. 71.32 crores a year while exports were valued at Rs. 64.51 crores. Trade with the United Kingdom made up 31.54% of the total trade of the Presidency with Madras the chief port accounting for 49% of the total trade.

Cotton piece-goods, cotton twist and yarn, metals and kerosene oil were the main items of import while animal hides and skins, raw cotton, coffee and piece-goods were the chief exports. Raw cotton, animal hides, oil seeds, grains, pulses, coffee, tea and cotton manufactures were the main items of sea trade. Most of the sea trade was carried through the presidency's principal port of Madras. Other important ports were Gopalpur, Kalingapatnam, Bimlipatnam, Visakhapatnam, Masulipatnam, Cocanada, Madras, Cuddalore, Negapatam, Pamban and Tuticorin on the east coast along with Mangalore, Cannanore, Calicut, Tellicherry, Cochin, Alleppey, Quilon and Colachel on the western seaboard. The port of Cochin was taken over by the Government of India on August 1, 1936 and that of Madras on April 1, 1937. There were Chambers of Commerce in Madras, Cochin and Cocanada. These chambers each nominated a member to the Madras Legislative Council.

Cotton-ginning and weaving were two of the main industries in the Madras Presidency. Cotton was produced in large quantities in the Bellary district and was pressed in Georgetown, Madras. The scarcity of cotton in Lancashire caused by a decline in trade due to the American Civil War gave an impetus to cotton and textile production and led to cotton presses being established all over the Presidency. In the early years of the 20th century, Coimbatore emerged as an important centre for cotton textiles and earned the epithet "Manchester of South India". The northern districts of Godavari, Vizagapatam and Kistna were well-known cotton-weaving centres. There was a sugar factory at Aska in Ganjam run by F. J. V. Minchin and another at Nellikuppam in South Arcot district run by the East India Distilleries and Sugar Factories Company. In the Telugu-speaking northern districts of the presidency large quantities of tobacco were cultivated to be subsequently rolled into cheroots. Trichinopoly, Madras and Dindigul were the main cheroot-producing areas. Until the discovery of artificial aniline and alizarine dyes, Madras possessed a thriving vegetable dye manufacturing industry. The city also imported large quantities of aluminium for the manufacture of aluminium utensils. In the early 20th century, the government established the Chrome Tanning Factory which manufactured high-quality leather. The first brewery in the Presidency was founded in the Nilgiri Hills in 1826. Coffee was cultivated in the region of Wynad and the kingdoms of Coorg and Mysore while tea was grown on the slopes of the Nilgiri Hills. Coffee plantations were also established in Travancore but a severe blight at the end of the 19th century destroyed coffee cultivation in the kingdom and almost wiped out coffee plantations in neighbouring Wynad. Coffee-curing works were located at Calicut, Tellicherry, Mangalore and Coimbatore. In 1947, Madras had 3,761 factories with 276,586 operatives.

The presidency's fishing industry thrived, with Shark's fins, fish maws and fish curing-operations the main sources of income for fishermen. The southern port of Tuticorin was a centre of conch-fishing but Madras, along with Ceylon, was mainly known for its pearl fisheries. Pearl fisheries were harvested by the Paravas and was a lucrative profession.

The total revenue of the Presidency was Rs. 57 crores in 1946–47 made as follows: Land revenue, Rs. 8.53 crores; Excise, Rs. 14.68 crores; Income tax, Rs. 4.48 crores; Stamp revenue, Rs. 4.38 crores; forests, Rs. 1.61 crores; other taxes, Rs. 8.45 crores; Extraordinary receipts, Rs. 2.36 crores and revenue fund, Rs.5.02 crores. Total expenditure for 1946–47 was Rs. 56.99 crores. 208,675 k.v.a of electricity was generated at the end of 1948 of which 98% was under government ownership. The total amount of power generated was 467 million units.

The Madras Stock Exchange was established in Madras city in 1920 with a strength of 100 members but gradually faded away and membership had reduced to three by 1923 when it had to be closed down. Nevertheless, the Madras Stock Exchange was successfully revived in September 1937 and was incorporated as the Madras Stock Exchange Association Limited. EID Parry, Binny and Co. and Arbuthnot Bank were the largest private-owned business corporations at the turn of the 20th century. EID Parry manufactured and sold chemical fertilizers and sugar while the Binnys marketed cotton garments and uniforms manufactured at its spinning and weaving facility, the Buckingham and Carnatic Mills in Otteri. Arbuthnot, owned by the Arbuthnot family, was the largest bank in the Presidency until its crash in 1906. Reduced to penury, disillusioned former Indian investors established the Indian Bank with funds donated by Nattukottai Chetties.

Between 1913–14, Madras had 247 companies. In 1947, the city led in the establishment of registered factories but employed only 62% of the total productive capital.

The first Western-style banking institution in India was the Madras Bank which was established on June 21, 1683 with a capital of one hundred thousand pounds sterling. This was followed by the opening of the Carnatic Bank in 1788, the Bank of Madras in 1795 and the Asiatic Bank in 1804. In 1843, all the banks were merged to form the Bank of Madras. The Bank of Madras had branches in all the presidency's major cities and princely states including Coimbatore, Mangalore, Calicut, Tellicherry, Alleppy, Cocanada, Guntur, Masulipatnam, Ootacamund, Negapataam, Tuticorin, Bangalore, Cochin and Colombo in Ceylon. In 1921, the Bank of Madras merged with the Bank of Bombay and the Bank of Bengal to form the Imperial Bank of India. In the 19th century, the Arbuthnot Bank was one of the largest privately-owned banks in the Presidency. The City Union Bank, the Indian Bank, Canara Bank, Corporation Bank, Nadar Bank, Karur Vysya Bank, Catholic Syrian Bank, Karnataka Bank, Bank of Chettinad, Andhra Bank, Vysya Bank, Vijaya Bank, Indian Overseas Bank and the Bank of Madura were some of the leading banks headquartered in the Presidency.