Question:medium

Two statements labelled as Assertion (A) and Reason (R) are given below. Read them carefully and select the correct option:
Assertion (A): The American Civil War created a panic in the cotton circles in Britain.
Reason (R): American cotton supplies had dropped drastically which increased the demand for Indian cotton.

Show Hint

In assertion-reason questions, always verify whether both statements are true independently and then check if the reason logically explains the assertion.
Updated On: Jan 14, 2026
  • Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).
  • Both Assertion (A) and Reason (R) are true, but Reason (R) is \textbf{not} the correct explanation of the Assertion (A).
  • Assertion (A) is true, but Reason (R) is false.
  • Assertion (A) is false, but Reason (R) is true.
Show Solution

The Correct Option is A

Solution and Explanation

The American Civil War (1861–1865) severely disrupted the Southern United States' cotton supply to Britain, a critical source for its textile industry. This disruption caused a cotton shortage and widespread panic among British textile manufacturers. Concurrently, this scarcity prompted Britain to seek cotton from India to fulfill its demands, significantly increasing the need for Indian cotton. This sequence of events clarifies the panic in Britain, thus providing a valid explanation for the preceding statement.
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