Weaving Industry

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Do you know that the invention of Power Loom had a disastrous effect upon the Indian Economy. As the production of cloth increased in England, the cost of production went down. Once the machine made cloth became available at cheaper rates, the terms of trade between India and England changed. England became an exporter of the cloth to India and India became an Importer. It led to total ruin of India's handloom industry since cheaper imported cloth replaced the handloom cloth. and India's foreign trade balance became negative.