Calcutta (now Kolkata) had the raw material close by as the jute growing areas were mainly in Bengal. There was an abundant supply of labor, ample coal for power, and the city was ideally situated for shipping to world markets. The first jute mill was established at Rishra, on the River Hooghly near Calcutta in 1855 when Mr. George Acland brought jute spinning machinery from Dundee. Four years later, the first power driven weaving factory was set up.
By 1869, five mills were operating with 950 looms. Growth was rapid and, by 1910, 38 companies operating 30,685 looms exported more than a billion yards of cloth and over 450 million bags. Until the middle 1880's, the jute industry was confined almost entirely to Dundee and Calcutta. France, America, and later Germany, Belgium, Italy, Austria, and Russia, among others, turned to jute manufacturing in the latter part of the 19th century.
In the following three decades, the jute industry in India enjoyed even more remarkable expansion, rising to commanding leadership by 1939 with a total of 68,377 looms, concentrated mainly on the River Hooghly near Calcutta. These mills alone have proved able to supply the world demand.