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The early cotton mills in India produced [[1]] rather than fabric.

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answer is COARSE COTTON YARN (THREAD).

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Detailed Solution

The early cotton mills in India produced Coarse cotton yarn (thread) rather than fabric.
Manchester cotton textiles produced in English factories entered the Indian market. Manchester cloth was less expensive than Indian cotton textiles. It was due to India's lower import duties. It gradually replaced the market's indigenous cotton textiles. As a result, the Indians began producing coarser yarn rather than fabric. The coarser fabric was not a significant British import. The yarn was of superior quality and was produced by weavers using handlooms. It was shipped to China. The poor preferred the coarser fabric because they could not afford the finer varieties.

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The early cotton mills in India produced [[1]] rather than fabric.