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Exports declined and import of textiles increased. The Indian textile manufactures could neither sell their goods outside India nor could they sell their goods inside India. Import of English textiles into India increased from 31 % to 50 %. As imported machine –made textiles was cheaper, the Indian weavers could not compete with it. Raw cotton from India was exported to feed the Cotton mills of England and the Indian textile industry was without enough raw materials. Soon mechanised textile mill were also set up in India and the hand -weavers were virtually without any work.

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