The four factors responsible for the decline of cotton textile industry in India were : (i) European managing agencies which dominated industrial production in India, were interested in certain kinds of products. They established tea and coffee plantations, invested in mining, indigo and jute. These products were required for export trade and not for sale in India. (ii) Indian businessmen set up industries in the late 19 th century which avoided competition with the Manchester goods. The Manchester goods were cheaper and mill-made. (iii) The British disallowed Indian merchants to trade with Europe in manufactured goods. They had to export raw materials and food grains — raw cotton, opium, wheat and indigo. (iv) The British monopolised and controlled a large sector of Indian industries. Their agencies mobilised capital, set up joint stock companies and managed them. They made all the decisions in their favour though the Indian businessmen provided the finance.