e limitations under which
this Government has to frame its industrial policy. We
regret that Government cannot give the country a protective
tariff forthwith. However excellent Free Trade may be for
a country in an advanced stage of industrial development,
it must be conceded that Protection is necessary for the
success and development of infant industries. Even pronounced
protagonists of Free Trade do not view this idea
with disfavour. That Indian manufacturing industry is
in its infancy does not admit of controversy. Why should
not India, then, claim special protection for her undeveloped
industry? Even countries remarkable for their industrial
enterprise and excellence protect their industries. The
United States and Germany are decidedly Protectionist. The
British Colonies have protective tariffs... protective
in purpose, scope, and effect. They are not like the Indian
import duties, levied for revenue purposes. The Indian
appeal for Protection cannot in the circumstances be unreasonable.
The development of the industries is a matter
of great moment to the Empire, and the popular leanings
towards Protectionism ought to engage the sympathy of
Government. The imposition of import duties for revenue
purposes is sanctioned by precedent and principle alike.
... And yet for a small import duty of 3-1/2 per cent,
upon cotton goods a countervailing Excise duty upon home
manufactures is imposed in disregard of Indian public opinion,
and the latest pronouncement of the Secretary of State has
dispelled all expectations of the righting of this wrong.

No measure has done greater injury to the cause of Free Trade in India
or more permanent discredit to British rule than this Excise duty on
Indian manufactured cotton, for none has done more to undermine Indian
faith in the principles of justice upon which British rule claims, and,
on the whole, most legitimately claims, to be based. In obedience to
British Free Trade principles, all import duties were finally abolished
in India at the beginning of the eighties, except on liquors and on
salt, which were subject to an internal Excise duty. In 1894, however,
the Government of India were compelled by financial stress to revive the
greater part of the old 5 per cent tariff on imports, excluding cottons,
until the end of the year when cottons were included and under pressure
from England. Lord Elgin's Go