In the Economic perspective of the market, Adam Smith calls it an ‘invisible hand’ because it is like some invisible workforce deciding that what is good for the individual and for the society. He suggested that individual should make their own decisions which meet their self-interest so he promotes the concept of ‘free market’ where no regulation will be imposed by the state to control the market. This concept named with a French phrase called ‘laissez-faire’ which means leave alone or let it be.
In the Sociological perspective of the market, sociologists are trying to study the economic institutions and process in a larger social context. Also, there are some type of market which are deeply rooted for example - haat and ‘traditional business communities’ with their trading networks in colonial India.
The term Colonialism refers to the establishment of rule by one country over another with the motive to exploit the country fully. With the advent of colonialism in India, it caused a major upheaval in the economy which was as follows:
• The introduction of the capitalist system where the main aim was to earn the profit by privately owning the production process was imposed to exploit India economically.
• When the process of industrialisation which means the introduction of the machines in the production was made, it was difficult for the Indians to use that because of the low level of technological development and the habit of working on the land. This means only a small minority of the population working.
• In India, deindustrialisation occurred in some sectors, which led to the decline of old urban centers. When manufacturing increased in Britain, traditional exports of cotton and silk manufactures of India faced problems.
• The cities like Surat and Masulipatnam declined whereas Mumbai and Madras grew as important cities which benefitted the Britishers economically.
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