Answer:
(i) When Indian businessmen began setting
up industries; they avoided competing with Manchester goods in the Indian
market.
(ii) Since yarn was not imported by
British in India, early cotton mills in India started producing coarse cotton
yarn rather than fabric.
(iii) The yarn produced in
Indian spinning mills was used by handloom weavers in India or exported to
China.
(iv) As the Swadeshi Movement
began, nationalists told people to boycott foreign cloth.
(v) Industrial groups organized
themselves to protect their collective interests.
(vi) From 1906, the export of
Indian yarn to China declined since produce from the Chinese and Japanese mills
flooded the markets.
(vii) So industrialists in India
began shifting from yarn to cloth production.
(viii) Cotton piece goods production in
India almost doubled between 1900 and 1912.
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