Consider the following statements:1. In 1854, the first modern cotton mill was established in Kolkata.2. Cotton is a “pure” raw material which does lose weight in the manufacturing process.Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: D

Notes:

Explanation: Initially, the British did not encourage the development of the indigenous cotton textile industry.

They exported raw cotton to their mills in Manchester and Liverpool and brought back the finished products to be sold in India.
This cloth was cheaper because it was produced at mass scale in factories in U.K. as compared to the cottage based industries of India.
In 1854, the first modern cotton mill was established in Mumbai.
Cotton is a “pure” raw material which does not lose weight in the manufacturing process.
So other factors, like, power to drive the looms, labour, capital or market may determine the location of the industry.

Source: NCERT – India People & Economy