The industry that suffered the most during the colonial period is both the cotton and textile industry. Let's delve deeper into why this was the case.

Cotton Industry:
- The cotton industry was one of the most significant sectors during the colonial period. India was known as the "golden bird" due to its immense wealth in cotton production.
- However, with the arrival of the British East India Company, the cotton industry faced a severe blow. The British government imposed high tariffs on Indian cotton, making it difficult for Indian cotton to compete in the international market.
- Additionally, the British introduced their own cotton mills, which were more efficient and could produce textiles at a lower cost. This led to a decline in demand for Indian cotton, as the British mills flooded the market with cheaper textiles.
- The British also implemented policies that prioritized the export of raw cotton from India to feed their own textile industry. This further disrupted the growth of the Indian cotton industry.

Textile Industry:
- The textile industry, which heavily relied on cotton as its primary raw material, suffered immensely during the colonial period.
- The British established textile mills in India and implemented policies that favored the growth of their own industry. They had access to cheap raw materials, as well as a captive market due to their control over India's trade.
- Indian weavers, who were primarily engaged in the textile industry, faced significant challenges. They were forced to sell their products at low prices to the British, leading to a decline in their income and living standards.
- The British mills also had advanced machinery and technology, which Indian weavers couldn't compete with. This led to a decline in the overall quality of Indian textiles, as well as a loss of traditional weaving skills and techniques.

Impact:
- The decline of the cotton and textile industry had severe consequences for India's economy. It resulted in a loss of employment for millions of people, as well as a decline in income and living standards.
- The British policies not only disrupted the growth of these industries but also led to a deindustrialization of India. The country became dependent on British imports, which further weakened its economy.

In conclusion, both the cotton and textile industries suffered immensely during the colonial period. The British policies and competition from British mills led to a decline in demand for Indian cotton and textiles, resulting in a significant loss of employment and economic hardships for the Indian population.