Industrialists in India begin shifting from yarn to cloth production because of the following ways: . When Indian businessmen began setting up industries; they avoided competing with Manchester goods in the Indian market. . Since yarn was not imported by British in India, early cotton mills in India started producing coarse cotton yarn rather than fabric. . The yarn produced in Indian spinning mills was used by handloom weavers in India or exported to China. . As the Swadeshi Movement began, nationalists told people to boycott foreign cloth. . Industrial groups organised themselves to protect their collective interests. . From 1906, the export of Indian yarn to China declined since produce from the Chinese and Japanese mills flooded the markets. . So industrialists in India began shifting from yarn to cloth production. . Cotton piece goods production in India almost doubled between 1900 and 1912.