Discriminatory tariff policy, disappearance of princely states, competition with machine made products and change in demand pattern resulted in deterioration of _________ during colonial period.

Handicraft Industry

The correct answer is option (2) : Handicraft Industry

The factors mentioned - discriminatory tariff policy, disappearance of princely states, competition with machine-made products, and changes in demand pattern - contributed to the deterioration of Handicraft Industry during British period.