India’s handicraft industry was a world famous industry and it
was becoming difficult for British to sell their machine manufactured items.
Therefore they adopted a policy of systematic de industrialisation and develop
India as an exporter of raw material and a market for British Goods.
British adopted a discriminatory tariff policy and kept the raw
material tax free and imposed heavy taxes on export of handicrafts. Market was
flooded with cheap manufactured goods and thus India’s rich handicraft industry
declined.
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