why did Handloom industry collapse in India during 19th century explain
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The handloom industry collapsed due to the following reasons: ... 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.
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1. To promote local factories, the government has put more import duties on the textiles coming from India. As a consequence the Indian weavers have lost their overseas business.
2. Finally the manchester products also began entering the Indian market and it was difficult for the Indian weavers to finish off with the low cost manchester fabric.
3. In India, the British government also levied more taxes on handloom units , making Indian textiles more expensive on Indian markets compared to manchester textiles.
4. The civil war in the US compelled the British for their manchester textile factories to import more raw cotton from India. This caused the weavers and the Indian handloom industry to crash an acute shortage of raw material.