The passage states that Indian products -> enjoyed a worldwide market -> due to fine quality of material used and high standards of craftsmanship. This is supported by the fact that India was well known for its handicraft industries in fields like cotton and silk textiles.
Option 1 is incorrect as it states Indian products were of inferior quality.
Option 2 is incorrect as it states Indian products were promoted by the colonial government.
Option 3 is correct as it states Indian products -> enjoyed a worldwide market -> based on quality of material used and high standards of craftsmanship.
Option 4 is incorrect as it states Indian products' raw material was imported from other countries.