What was the main reason for widespread unemployment in India during colonial rule?

Decline of Handicrafts Industry

the correct answer is Option 2: Decline of Handicrafts Industry

The decline of the handicrafts industry significantly contributed to widespread unemployment. The influx of cheap machine-made goods from Britain undermined traditional Indian handicrafts, leading to the collapse of this sector and the loss of livelihoods for many artisans and workers. The shift to a more import-dependent economy further exacerbated unemployment among those who had previously been engaged in handicrafts.

While other factors like high population growth, declining agricultural production did play roles in the economic context of colonial India, the primary factor for widespread unemployment was the decline of traditional industries, particularly handicrafts.