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Q.

Historically, fine cotton produced in India were exported to [[1]]

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answer is EUROPE.

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Detailed Solution

With industrialization, British cotton manufacturing began to expand and industrialists pressurized the government to restrict cotton imports into Britain and protect local industries.  Tariffs were imposed on cloth imports into Britain, consequently, the inflow of fine Indian cotton began to decline.  British manufacturers also began to seek overseas markets for their cloth.

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