AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Option A is correct. Both A and R are true, and R is the correct explanation of A. Indian mills produced coarse yarn (not fabric) because they avoided competing with finely woven Manchester cloth; this yarn was used by handloom weavers in India and exported to China.
The passage from Chapter 4 ('The Peculiarities of Industrial Growth') directly states: "Since yarn was not an important part of British imports into India, the early cotton mills in India produced coarse cotton yarn rather than fabric… The yarn produced in Indian spinning mills was used by handloom weavers in India or exported to China." So both A and R are factually correct, and R logically explains why A happened — making A the right option.