Discriminating protection
Also called: Fiscal Commission 1921-22 · Topic: Colonial Economy: Land Revenue, Drain, Deindustrialisation · NCERT: Beyond NCERT
Meaning
Discriminating protection was the British government's policy in India in the 1920s of protecting only selected Indian industries from foreign goods. Protection meant higher tariffs (taxes) on imports. It came from the Indian Fiscal Commission of 1921–22, and a Tariff Board was set up to examine each industry's claim. An industry had to meet three conditions. It needed natural advantages such as raw material and a market. It had to be unable to grow without protection. It also had to be able to face competition on its own later. This was a break from free trade, but a limited one.
Example
Under the Steel Industry (Protection) Act of 1924, the Tata steel works at Jamshedpur received tariff protection against cheaper imported steel.
Don't confuse with
- Free trade: free trade means no protection for anyone, which was British policy in India for most of the 19th century. Discriminating protection gave help only to industries the Tariff Board approved.
Related concepts
- Bombay cotton mills
- Dwarkanath Tagore
- Opium trade with China
- Jamsetji Tata
- Tata Iron and Steel Company
- Managing agency
- Jobber
- Cotton excise duty 1896