(i) Initially, the Indian industries did not decline as the British cotton industries had not yet expanded and Indian fine textiles were in great demand. So the Company was keen on expanding the textile exports from India.
(ii) Before establishing political power in India the company in, Bengal and Carnatic in 1760s and 1770s, found it difficult to ensure a regular supply of goods for export.
(iii) The Dutch, the French and the Portuguese, as well as local traders, competed in the market to secure woven cloth.
(iv) So the weavers could bargain and the try selling the produce to the best buyer.
(v) Once the Company established its power it could assert a monopoly right to trade. It developed a system of management and control that would eliminate the competition, control cost and ensure regular supplies.
