The first major boost to modern industry in India happened in the 1860

The first major boost to modern industry in India happened in the 1860s. It was a direct result of

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the demand created in America because of the Civil War

the demand created in Europe because of the Civil War in America

the decline in competition from the cotton mills of Lancashire and Manchester

the support of government to industries in India

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This question was previously asked in

UPSC CAPF – 2013

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The 1860s were marked by the American Civil War (1861-1865). This conflict severely disrupted the supply of raw cotton from the United States to the textile mills in Lancashire and Manchester, England. European, particularly British, demand for cotton shifted heavily towards India, leading to a massive boom in cotton cultivation, trade, and prices in India. This influx of capital and activity provided the first major stimulus for the development of a modern textile industry in India, as well as related infrastructure like railways and ports for transporting cotton.

– The American Civil War disrupted cotton supply to Europe.
– European (British) demand for Indian cotton surged in the 1860s.
– This cotton boom stimulated early industrial growth and infrastructure development in India.

The period of the “Cotton Boom” brought significant wealth to cotton-growing regions in India but also led to land speculation and economic instability once the American Civil War ended and US supply resumed. This event highlighted India’s potential as a supplier of raw materials to the British industry.

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