What was the impact of the decline of indigenous handicraft industries on India's consumer market?

New demand for imported goods from Britain

Under colonial rule, India faced challenges in developing a strong industrial foundation, similar to its struggles in the agricultural sector. While the country's renowned handicraft industries experienced decline, no corresponding modern industrial base was allowed to emerge to replace them. The colonial government pursued a two-fold motive in systematically de-industrializing India. Firstly, it aimed to reduce India to a mere exporter of raw materials for the growing modern industries in Britain. Secondly, it sought to transform India into a vast market for the finished products of those industries, ensuring maximum benefit for Britain. As the indigenous handicraft industries declined, it led to significant unemployment in India. Additionally, it created a new demand in the Indian consumer market, as locally made goods became scarce. This demand was met by the increasing importation of inexpensive manufactured goods from Britain. This policy served the economic interests of Britain while impacting India's domestic industries and employment opportunities.