The word terracotta has its etymology in the Latin phrase terra cocta, which became terra cotta

(meaning baked earth) in the Italian language, and subsequently the term terracotta came intox being in the 18th century. (http://www.indianetzone.com/49/terracotta_art_west_bengal.htm)-2nd paragraph

When it was started Archeologically finds in Pandu Rajar Dhibi and Harinarayanpur attest to the fact that terracotta art had started in the Bengali culture from the pre-Mouryan period. But the real history of terra cotta sculpture starts from Mauryan Age (324-187 BC).

Since terracotta was the main form of sculpture, we find some of the most sophisticated and beautiful manifestations of those principles in terracotta. Ample pieces of sculptures belonging to the third century BC have been found at Tamluk and Chandraketugarh, and the facial expressions, physical postures, hair styles, ornaments, dresses, decoration found in those artefacts present vitality, fullness and maturity, and all these attest to the confident and independent ways of living. From its prevalence, it can be inferred that the art had a long and continuous heritage, though it must be emphasised that the artists could not yet produce smooth and polished terracotta.