Did globalisation aid industrial development in colonial India? A study of knowledge transfer in the iron industry

The article explores the link between international economic integration and technological capability in colonial India. The example of the iron industry shows that many new ideas and skills flowed into India from Europe, but not all met with commercial success. The essay suggests a reason why. In those fields in which the costs of complementary factors were relatively low, the chance of success was higher. This condition was present in the craft of the blacksmith, in which the main complementary input was abundant craftsmanship. The condition was slow to develop in iron-smelting, where the costs of fuel, labour, capital and carriage of ore were initially high