After 1865, Indian cotton exports to Britain declined because of __________.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → The revival in the production of cotton in America after the Civil War.
Option (1) The revival in the production of cotton in America after the Civil War. — Correct. While the boom lasted, cotton merchants in India hoped to capture the world market in raw cotton and permanently displace America. By 1865 these dreams were over: as the Civil War ended, cotton production in America revived and Indian cotton exports to Britain steadily declined.
Option (2) The decline in the production of cotton in India. — Incorrect. The fall came from the buyers’ side. Once American cotton was available again, Britain bought less from India, and export merchants and sahukars in Maharashtra could see the demand for Indian cotton fall.
Option (3) The quality of cotton was not up to mark. — Incorrect. The decline followed the end of the war in America; during the boom the same Indian cotton had been bought eagerly, so its quality was not what changed after 1865.
Option (4) More imports from China. — Incorrect. The supplier that came back to the British market was America, not China.
NCERT (2026-27): “3.5 Credit dries up … While the boom lasted, cotton merchants in India had visions of capturing the world market in raw cotton, permanently displacing America. The editor of the Bombay Gazette had asked in 1861, ‘What can prevent India from supplanting the Slave States (of U.S.A.) as the feeder of Lancashire?’ By 1865 these dreams were over. As the Civil War ended, cotton production in America revived and Indian cotton exports to Britain steadily declined. Export merchants and sahukars in Maharashtra were no longer keen on extending long-term credit.…” |