- Historically, fine cottons produced in India were exported to Europe.
- With industrialisation, British cotton manufacture began to expand and industrialists pressurised the government to restrict cotton imports into Britain and protect local industries.
- Tariffs were imposed on cloth imports into Britain, consequently the inflow of fine Indian cotton began to decline.
- British manufacturers also began to seek overseas markets for their cloth.
- Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets