Why did the handloom industry collapse in India during the 19^th century? Explain.

The handloom industry collapsed due to the following reasons:

1. High taxes on textiles imported from India in England to encourage local industries.

2. They also imposed high duties on the handloom units which made the cloth expensive.

3. 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.

4. The market was flooded with Manchester textiles which reduced the demand of local textiles.