The textiles industry of India faced many problems in the first few decades of its existence. Competing with cheap textiles imported from Britain was difficult. The governments of most of the European countries protected their local industries by heavy import duties. The colonial government in India did not provide such protection to local industries.

Here are some problems:

(a) Indian textiles now had to compete with British textiles in European and American markets.

(b) Exporting textiles to England also became increasingly difficult since very high duties were imposed in Indian textiles imported to Britain.

(c) European companies had stopped buying Indian goods and their agents no longer gave out advantages to weavers to secure supplies.

(d) By 1830s, two-thirds of all the cotton made of clothes produced in Britain.