Thursday, December 20, 2007

Competition with British goods

It was difficult for indians to compete with British cotton goods because ;

a)British cotton goods were produced by machines at lower costs.

b) Therfore they were cheaper than the indian goods.

c) Indian weavers could not get sufficient supplies of raw cotton of good quality
because it was exported to Britain at a much cheaper rate than its mkt. price.

Increase in the export of raw cotton from India & difficult for Indians to compete with British cotton goods because;

With the outbreak of American civil war --

a) cotton supplies from USA were cut off.

b) Britain started importing raw cotton from India.

c) Weavers in India could not get raw cotton in sufficient supply.

d) They were forced to buy raw cotton at high rates.

e) Weaving was no longer profitable for the indian weaver.

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