So basically when the East India Company first entered India they were just simple merchants, who used to buy goods from the Indian market and sell them abroad at Higher prices. Soon Indian Textiles and handicraft became so much popular in Britain that the British wool industry almost collapsed and suffered huge losses. The European traders were very unhappy with this and asked the British government to take checks and measures to support the English wool industry.
Therefore the European government banned use of Indian textiles but still they remained popular among the people of Britain and Europe.
With the advent of industrialisation in Europe and especially Britain manufacturing different items became cheaper. Now they were looking for raw material and well established market to sell their manufactured goods.
The English East India Company started exporting British manufactured goods in India with the aim of creating India A Marketplace of British manufactured goods. As the administration of some states like Bengal had also passed into the hands of the British, they now extracted revenues from the local people put their benefits and tried to control the Indian trade. The company used political control and utilised its revenues of Bengal to finance the exports of Indian goods. The Weavers from Bengal were forced to sell their product is a very cheaper tries to the British with they had fixed even if they had to face huge losses. The British imported cheap and fine quality raw materials from India and sold their manufactured goods at very high prices all around the world. Indian weavers lost both domestic and foreign markets after 1813 due to the process of industrialisation in Britain. The agricultural India was made the raw material factory of the industrial England. The British government promoted free entry of British goods into the country while Indian goods had to pay a huge amount of entry tax while entering Britain.
Indian Handicrafts were forced to to compete a cut throat competition with British machine manufactured goods.
India was transformed into a consumer of British goods and a supplier of raw materials. It was forced to export raw materials like raw cotton and silk and materials like tea and Indigo which were in short supply in Britain and therefore the Indian market of manufactured goods and handicraft was ruined completely because of the British industrialisation.