Britishers came to India as traders, hence their motive in colonising India was purely commercial. During their rule, the British were successful in exterminating Indian manufacturing industries, be it textiles, or any sector to aid their dominance. Thus, from being a net exporter to the world, India became a suppler of raw material to the British and consumer of finished goods made in (industrial) Britain. The Britishers made their way not just into the material aspects of Indian life but also into the minds of the people. Everything British was considered of a higher standard, elite and modern, especially by the wealthy. Both Indian psyche and physique were turning western. The colonial powers held to India by the argument, India cannot be a nation without the British help.

The Swadeshi movement began in Bengal in 1905, when Viceroy Curzon partitioned it. This was an economic strategy aimed at removing the British from power and improving the economic conditions in India by following the principles of self-reliance. The movement, thus, involved the boycotting British products and production processes and the revival of domestic products and production processes. This movement was the most successful of the pre-Gandhian movements.

The movement rose to new heights under the leadership of Gandhi, who was accompanied by far-sighted Indian industrialists. The movement gave these industrialists an opportunity to utilise the patriotic fervour in their advantage. Cotton textile industry, among others, were one of the major beneficiaries of this wave of patriotism as people began to switch to Indian-made products like khadi with pride. This surge in demand led to an expansion of the cotton textile industry, and soon cotton mills were found all over India, as they became location independent.