Assertion(A): From 1906, the export of Indian yarn to China declined.

Reason(R): After the First World War, Manchester could never recapture its old position in the Indian market.

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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 B.

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Detailed Solution

India's first cotton mills began manufacturing coarse cotton yarn rather than fabric. The yarn made in Indian spinning mills was either exported to China or used by handloom weavers. Nationalists urged people to avoid buying clothing from other countries as the Swadeshi Movement got underway. Hence from 1906, the export of Indian yarn to China decreased.
Manchester was unable to regain its former place in the Indian market because Britain's economy collapsed after the First World War. It was unable to modernise and compete with the US, Germany, and Japan. And hence, British exports of cotton textiles fell drastically as cotton production collapsed.
Thus, both the Assertion and Reason are true, but the Reason is not a correct explanation of the Assertion.

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