The colonial rulers restricted Indian trade. The Indian traders were barred from trading with Europe in manufactured goods. They had to export mostly raw materials and food grains, especially cotton, opium, wheat and indigo. They were also gradually restricted from the logistics business. In most situations, the capital was provided by the Indian financiers and the European Agencies made all the investment and business decisions. The European Managing Agencies dominated industrial production in India. They were interested in the production and export of tea, coffee, indigo, jute and other plantations crops. They were primarily exported and was not for sale in India.
With the inauguration of the swadeshi movement during the 20th century, nationalists mobilised people to boycott foreign cloth and commodities. Thus the market for Indian commodities and services increased throughout the country. The production of swadeshi goods increased. This contributed to the rapid growth, especially in the smallscale sector. Thus the National Movement largely benefitted the entrepreneurs.