Why did Indian businessmen/manufacturers avoid competing with Manchester goods in the Indian markets. Explain the reasons.
At end of the eighteenth century, there was virtually no import of cotton piece-goods into India but by 1870 it was over 50 per cent. The Indian businessmen/manufacturers avoided competing with Manchester goods due to the reasons as mentioned below : The market was glutted with Manchester imports. Produced by machines at lower costs, the imported cotton goods were very cheap that the weavers could not easily compete with them. Insufficient supply of raw cotton of good quality : During the American Civil War, Britain could not get cotton supplies from the US. Thus, raw cotton was exported from India to | Britain. As a result of this, the Indian weavers could not get supplies and sometimes, they were forced to buy at high prices.
