Question

What was the effect of American civil war of the 1860s on the fate of cotton textile industry in India?

• A. The prices of raw cotton declined
• B. The prices of raw cotton shooted up
• C. The cotton weaving became profitable
• D. There was huge surplus of raw cotton

Answer 1

Answer: (B)

The prices of raw cotton shooted up

When the American Civil War broke out and cotton supplies from the US were cut off, Britain turned to India. As raw cotton exports from India increased, the price of raw cotton shot up. Weavers in India were starved of supplies and forced to buy raw cotton at exorbitant prices. In this, situation weaving could not pay.