Deindustrialise

To reduce or destroy a country's or region's industrial capacity, often through deliberate policy or unequal competition

From de- (reversal) + industrialise, ultimately from Latin industria (diligence, activity)

"British tariff policy through the nineteenth century is widely blamed for deindustrialising India's once-dominant handloom textile sector, the very grievance the Swadeshi Movement mobilised against."