Which of the following statement is not correct related to the British policy for the Indian handicrafts industry?

1
The British policy encouraged India to be a supplier of raw materials to England and consumer of finished British goods.
2
The Indian markets were flooded with cheap manufactured goods of British.
3
A high export duty was imposed on British goods but a low import duty on Indian goods. 
4
Machines replaced manpower in India as well and power loom made goods were introduced replacing handloom made goods.

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