Factor markets and the narrative of economic change in India, 1750–1950

This article revisits an argument that land, labour and credit market transactions in India were restructured by colonialism and globalization, in a manner that left peasants and labourers worse off than before. It shows that the process of change was more diverse than this approach considers, and that it was shaped also by social institutions. I argue further that growth and welfare outcomes of the process cannot be fully understood in terms of market imperfection and state policy. For that purpose, it is necessary to pay more attention to environmental factors and local society.