Question

How did the handloom industry collapse by British rule in India

Answer 1

(i) Factories in Manchester started producing cotton textiles for the domestic market. 
(ii) The government put more import duties on the textile coming from India,to eneourage the,locat industries. As a result, the Indian weavers lost their overseas market. 
(iii) Eventually, the Manchester goods started flooding the Indian markets also and it became difficult for the Indian weavers to compete with the low-cost Manchester cloth.

(iv) The British Government in India also levied more taxes on the handloom units which made the Indian textiles costlier in Indian markets when compared to the Manchester textiles.

(v) The Civil War in USA forced the British to buy more raw cotton from India for their Manchester textile industries. This created an acute shortage of raw material for the weavers and the Indian handloom industry collapsed.

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Answer 2

Answer: The handloom industry collapsed due to the following reasons:

1. High taxes on textiles imported from India in England to encourage local industries.

2. They also imposed high duties on the handloom units which made the cloth expensive.

3. Due to the Civil War in the US, Britain imported a lot of raw materials from India for their industries. This created a shortage of raw materials in the local markets of India.

4. The market was flooded with Manchester textiles which reduced the demand of local textiles.