Well, if English textile could out-compete Indian without greater productivity, then it does not hinge on the productivity.

But mainly, you just triggered a pet peeve of mine.

Essentially, this view:

Whose thumbs were cut by the British in indian history? - Yahoo! Answers India

The British didn't cut off thumbs. They didn't need to. Their machine-made products were much cheaper and left the Indian buyers more money to spend on other things - including, eventually, weaving machinery.

Which is just far to common.

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