What caused decay of the handicraft industry during the colonial period?

Both 1 and 2

Option 4: Both 1 and 2

During the colonial period, the decay of the handicraft industry in India was caused by multiple factors, including:

Introduction of discriminatory tariff policy: The colonial rulers imposed tariffs and duties that were often discriminatory against Indian handicrafts. This made it more difficult for Indian artisans to compete in the market, as imported machine-made goods from Britain were often favored over locally produced handicrafts. Further, introduction of discriminatory tariff policy lead to decrease in exports of handicrafts as heavy duties were enforced on them making them less competitive in the international markets.

Competition from cheap machine goods from Britain: The industrial revolution in Britain led to the mass production of goods using machines, which were cheaper and often of perceived higher quality compared to handmade Indian handicrafts. This competition from British machine-made goods severely impacted the demand for Indian handicrafts both within India and in international markets.