Under the Mughal Empire, which ruled in the Indian subcontinent from the early 16th century to the early 18th century, Indian cotton production increased, in terms of both raw cotton and cotton textiles. The Mughals introduced agrarian reforms such as a new revenue system that was biased in favour of higher value cash crops such as cotton and indigo, providing state incentives to grow cash crops, in addition to rising market demand.
The largest manufacturing industry in the Mughal Empire was cotton textile manufacturing, which included the production of piece goods, calicos, and muslins, available unbleached and in a variety of colours. The cotton textile industry was responsible for a large part of the empire's international trade. India had a 25% share of the global textile trade in the early 18th century. Indian cotton textiles were the most important manufactured goods in world trade in the 18th century, consumed across the world from the Americas to Japan. The most important center of cotton production was the Bengal Subah province, particularly around its capital city of Dhaka.
The worm gear roller cotton gin, which was invented in India during the early Delhi Sultanate era of the 13th–14th centuries, came into use in the Mughal Empire some time around the 16th century, and is still used in India through to the present day. Another innovation, the incorporation of the crank handle in the cotton gin, first appeared in India some time during the late Delhi Sultanate or the early Mughal Empire. The production of cotton, which may have largely been spun in the villages and then taken to towns in the form of yarn to be woven into cloth textiles, was advanced by the diffusion of the spinning wheel across India shortly before the Mughal era, lowering the costs of yarn and helping to increase demand for cotton. The diffusion of the spinning wheel, and the incorporation of the worm gear and crank handle into the roller cotton gin, led to greatly expanded Indian cotton textile production during the Mughal era.
It was reported that, with an Indian cotton gin, which is half machine and half tool, one man and one woman could clean 28 pounds of cotton per day. With a modified Forbes version, one man and a boy could produce 250 pounds per day. If oxen were used to power 16 of these machines, and a few people's labour was used to feed them, they could produce as much work as 750 people did formerly