Abstract

This article seeks to document and analyse various facets of the indigo dye industry in Bengal during 1772-1860. Britain's trade in Indian indigo during 1600-1757 is first dis cussed here briefly to identify why the imperial government in Bengal nurtured the industry's growth against the odds of international competition and domestic constraints of organisational and technical shortfalls. We then sketch out the course of its development in response to various fiscal and monetary incentives from the government as well as supports of market. information. The spread of its development is assessed in terms of number of firms, capital employed and the creation of job opportunities. Finally, the industry's welfare implications are studied in depth to verify whether the industry was a boon or a bane to the society of Bengal during the nineteenth century.

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