Assertion (A): The consolidation of East India Company power after the 1760s did not initially lead to a decline in textile exports from India.

Reason (R): British cotton industries had not yet expanded and Indian fine textiles were in great demand in Europe.

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Both (A) and (R) are true and (R) is the correct explanation of (A).

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) is true but (R) is false.

(A) is false but (R) is true.

answer is A.

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Detailed Solution

Both assertion and the corresponding reason are true and the reason is the correct explanation of the provided assertion. The consolidation of East India Company's power after the 1760s did not initially lead to a decline in textile exports from India. The reason that the consolidation did not lead to the decline of textile exports from India was that the British cotton industries, by that time, were far from expanding to the level at which Indian textile was produced. The Indian fine textiles were dominant in the international market for their quality and were in high demand in Europe.

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