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Answer -
For administrative purposes, the British divided colonial India into three Presidencies, which in turn led to the rise in the importance of the Presidency cities of Bombay, Madras and Calcutta. These cities became the centres of British power in the different regions of India. New factories came up, trade developed.
At the same time that these cities were expanding, the towns and cities that manufactured specialised goods declined due to a drop in the demand for what they produced. Old trading centres and ports could not survive when the flow of trade moved to new centres. Similarly, earlier centres of regional power collapsed when local rulers were defeated by the British and new centres of administration emerged. This process is described as de-urbanisation.