¶¶¶ The first cotton mill set up in India was "The Bombay Spinning Mill", in Bombay in 1854, by Cowasji Nanabhai Davar.

The correct answer is option 'A) Bombay'.

The first cotton mill in India was set up in Bombay, now known as Mumbai. Let's delve into the details of how and why it was established.

Historical Context:
- The establishment of the first cotton mill in India can be traced back to the early 19th century, during the British colonial rule.
- The British East India Company had a significant influence on India's economy during this period.
- India was known for its rich cotton production, and the British saw an opportunity to exploit this resource for their own benefit.

Establishment of the Cotton Mill:
- In the early 1850s, the textile industry in Britain was facing a shortage of cotton due to the American Civil War, which disrupted the supply of raw cotton from the United States.
- To overcome this shortage, the British looked towards their colony, India, for cotton production.
- Recognizing the potential of India's cotton industry, the British decided to set up cotton mills in the country to increase production and meet the growing demand.
- Bombay, being a major port city and a center of trade and commerce, was chosen as the ideal location for the first cotton mill.

Reasons for Choosing Bombay:
1. Proximity to Cotton Growing Regions:
- Bombay was strategically located near the cotton-growing regions of western India, such as Gujarat and Maharashtra.
- This proximity ensured a steady supply of raw cotton to the mill, reducing transportation costs and time.

2. Access to Ports:
- Bombay had well-developed ports, making it easier to import machinery and export finished goods.
- The availability of ports facilitated trade and ensured a smooth supply chain for the cotton mill.

3. Availability of Skilled Labor:
- Bombay had a large population of skilled artisans and weavers who were skilled in the textile industry.
- This availability of skilled labor made it easier to set up and operate a cotton mill in the city.

Impact of the First Cotton Mill:
- The establishment of the first cotton mill in Bombay marked the beginning of the industrialization of the textile industry in India.
- It paved the way for the growth of the textile sector, leading to the establishment of more cotton mills across the country.
- The cotton mill industry played a crucial role in shaping India's economy during the colonial era and beyond.

In conclusion, the first cotton mill in India was set up in Bombay due to its proximity to cotton-growing regions, access to ports, and availability of skilled labor. This marked the beginning of the industrialization of the textile industry in the country, contributing significantly to India's economic development.