The decline of Indian handicrafts in India and abroad can be attributed to various factors. However, the most significant factor was the colonial policies of the British.

Impact of British colonial policies on Indian handicrafts:

1. British East India Company's monopoly: The British East India Company had a monopoly over trade in India. They controlled the production, distribution, and sale of Indian handicrafts. This gave them immense power to manipulate the market and price of these products, leading to a decline in demand for Indian handicrafts.

2. Imposition of heavy taxes: The British imposed heavy taxes on Indian handicrafts, making them expensive and unaffordable for the common people. This led to a decline in demand for these products and a loss of markets in India.

3. Promotion of British goods: The British promoted their own manufactured goods from England, which were cheaper and of better quality than Indian handicrafts. This led to a decline in demand for Indian handicrafts in both India and foreign markets.

4. Destruction of Indian handicraft centers: The British destroyed Indian handicraft centers, which were the backbone of the Indian economy. This led to a loss of skilled artisans, and the decline of Indian handicrafts.

The decline of Indian handicrafts in India and abroad was a gradual process. However, the passing of the Charter Act of 1813, which allowed the import of British manufactured goods into India duty-free, was a significant blow to Indian handicrafts. This led to a decline in demand for Indian handicrafts, loss of markets in India, and eventually the decline of Indian handicrafts.