Why the Indian businessmen avoided competing with Manchester goods in the Indian market?

When Indian businessmen began setting up industries in the late nineteenth century, they avoided competing with Manchester goods in the Indian market. Since yarn was not an important part of British imports into India, the early cotton mills in India produced coarse cotton yarn (thread) rather than fabric. When yarn was imported it was only of the superior variety. The yarn produced in Indian spinning mills was used by handloom weavers in India or exported to China.