India's Economic History to 1947
Indian Textiles and World Trade
How Indian cotton cloth dominated global markets for centuries, why Britain restricted imports of calicoes, and how the trade reversed.
For centuries, India was the world’s leading producer of cotton textiles. Indian cloth was traded across Asia, Africa and Europe.
Why Indian textiles led
- Skilled weavers and dyers with generations of expertise.
- Colourfast dyes: Indian artisans mastered techniques using mordants to fix bright colours that did not wash out.
- Variety: from coarse cloth for everyday use to the fine muslins of Bengal.
- Low labour costs relative to quality.
The global trade
- In Southeast Asia, Indian cloth was exchanged for spices.
- In East Africa and the Middle East, it was a major import.
- From the 17th century, European trading companies, especially the English East India Company, shipped huge quantities to Europe.
- Indian textiles were also traded in the Atlantic slave trade, used in exchange for enslaved people in West Africa.
The calico craze
In England, printed Indian cottons, called calicoes and chintz, became hugely fashionable in the late 17th century. English wool and silk producers, fearing competition, pressed Parliament for protection.
The Calico Acts
Britain passed laws in 1700 and 1721 restricting the import and use of Indian printed cloth. These protectionist measures helped create space for British textile producers.
The reversal
In the late 18th and 19th centuries, the Industrial Revolution transformed British cotton production with machines like the spinning jenny and power loom. British mills, using cheap machine-spun yarn, eventually undersold Indian handloom cloth, even in India. By the 19th century, India was importing large quantities of British cotton goods, while exporting raw cotton.
A historical lesson
The story shows how protectionism and technological change can reshape global industries, a theme that echoes in today’s trade debates.
In 1750, a weaver in Bengal produces fine muslin sold in London. A century later, his descendants find that cheap machine-made cloth from Manchester sells in their own local market for less than they can produce it. Many weavers turn to farming or lose their livelihoods.
Britain protected its textile industry with the Calico Acts before its machines became competitive.
- India was the world's leading cotton textile producer for centuries.
- Skilled dyeing and weaving made Indian cloth prized worldwide.
- Britain's Calico Acts of 1700 and 1721 restricted Indian cloth imports.
- The Industrial Revolution reversed the trade, with India importing British cloth.
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