AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Answer: (C)
Small textile producers faced stiff competition from cheap machine-made goods imported from England, where industrialisation was more advanced, undercutting their handmade products and causing severe economic hardship.
Source: Chapter 1, Section 3.2 – Hunger, Hardship and Popular Revolt
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The passage explicitly states: "Small producers in towns were often faced with stiff competition from imports of cheap machine-made goods from England, where industrialisation was more advanced." This makes Option C the direct textbook answer. The other options (guild restrictions, Napoleon's blockade, trade routes) are not mentioned in the passage and are historically inaccurate for this context. Examiners look for the exact textbook reason — mechanised English imports undercutting continental handloom producers.