Encyclopedia of India–China Cultural Contacts v1.c5.s3.t8.4

v1.c5.s3.t8.4

When the Tatas entered the textile manufacturing business in India just like some other Indian businessmen they began to export the chief product of their mills, cotton yarn, to China. By the end of the 19ᵗʰ century CE, the Indian share of the market for imported cotton yarn in China had risen to 96 per cent. Before the Tatas, it was believed that only lower quality cotton yarn produced in India would sell in the Chinese market. However, in the Tatas' Swadeshi Mills in Bombay, a fine quality cotton yarn was produced that also sold very well in China. In the early part of the 20ᵗʰ century CE, however, Indian cotton yarn was displaced in the China market first by Japanese manufactured yarn, and then by yarn produced in Chinese factories.