The industrial revolution, which began in Britain, led to the ruin of Indian handicrafts. The mechanization and mass production of goods in England outpriced traditional handmade products from India, leading to the decline of Indian handicraft industry.

Option 2, the introduction of machines in the Indian textile industry, didn`t occur until later in the 19th century, often following colonial impositions. The industrial revolution`s initial impact was the flood of cheaper British textiles into India, rather than the introduction of machines in India.

Option 3 isn`t directly related to the industrial revolution`s impact on India during the first half of the 19th century. Railway lines indeed were introduced, but their impact on India`s industry at this point was minimal and they were primarily for British benefit.

Option 4 is incorrect as the British kept duties on Indian goods while removing the same on their goods in India during the first half of 19th century. This allowed British manufactures to flood the Indian market, leading to the ruin of Indian handicrafts.