Fine cottons of India were exported all over the Europe. With industrialisation, British cotton manufacturers began to expand and the industrialists pressurised the government to restrict cotton imports from India and protect local industries.
The following factors led to the decline of textile exports from India in 19th century
(i) The British Government introduced high tariffs on import of cotton cloth. Indian textile industry faced stiff competition and export ofcotton textiles began to decline. From the early 19th century, British manufacturers also began to seek overseas markets for their cloth. As a result, the Indian textile industry was adversely affected.
(ii) It faced stiff competition in other international , markets. A steady decline of Indian cotton textile was seen from some 30 per cent around 1800 to 15 per cent by 1815. By the 1870s, this proportion had dropped to below 3 per cent.
While exports of manufacturers decline rapidly, exports of raw materials increased equally fast. Between 1812 and 1871, the share of raw cotton increased from 5 per cent to 35 per cent.
(iii) British forced the farmers of India to produce indigo and opium. Indigo used for dyeing cloth was exported to Britain. Opium grown (from the 1820) in India was exported to China and with the money earned through opium sale, Britain financed its tea and other imports from China.