As far as the traditional handicraft industry and the production of objects of art were concerned, India was already far ahead of other countries in the world. The textiles were the most important among the Indian industries. Its cotton, silk and woolen products were sought after all over the world. Particularly, the muslin of Dacca, carpets of Lahore, shawls of Kashmir, and the embroidery works of Banaras were very famous. Ivory goods, wood works and jewellery were other widely sought after Indian commodities.

Apart from Dacca, which was highly famous for its muslins, the other important centres of textile production were Krishnanagar, Chanderi, Arni and Banaras. Dhotis and dupattas of Ahmedabad, Chikan of Lucknow, and silk borders of Nagpur had earned a worldwide fame. For their silk products some small towns of Bengal besides, Malda and Murshidabad were very famous. Similarly, Kashmir, Punjab and western Rajasthan were famous for their woolen garments.

Besides textiles, India was also known widely for its shipping, leather and metal industries. Indian fame as an industrial economy rested on cutting and polishing of marble and other precious stones and carving of ivory and sandalwood. Moradabad and Banaras were famous for brass, copper, bronze utensils. Nasik, Poona, Hyderabad and Tanjore were famous for other metal works. Kutch, Sind and Punjab were known for manufacturing arms. Kolhapur, Satara, Gorakhpur, Agra, Chittor and Palaghat had likewise earned a reputation for their glass industries. Making of gold, silver and diamond jewellery was another important industrial activity in which many places in India specialized. These entire handicrafts industry indicated a vibrant economy in India.

Despite enjoying such fame in the world, the Indian handicraft industry had begun to decline by the beginning of the 18th century.

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