Write short note on cotton industry

1. Subject Matter of Cotton Textile Industry :

The textile industry has mainly three divisions:
(i) The highly mechanised mill industry producing yarn and cloth,
(ii) The power loom factories producing cloth from mill-made yarn and
(iii) The widely scattered handloom units producing cloth from both mill-made and hand spun yarn. Thus, the structure of the industry is very complex.

2. Problems of Cotton Textile Industry in India:

The cotton textile industry in India has been suffering from the problems like:
(a) Obsolete machineries,
(b) Problems of modernisation,
(c) Lack of raw materials,
(d) Non-utilisation of production capacities,
(e) Lack of power supply,
(f) Increasing Government control and heavy excise duties,
(g) Higher unit cost of production,
(h) Inefficient and uneconomic units of production

3. Remedial Measures:

Solving the Problem of Cotton Textile Industry: In the meantime Government of India has taken certain positive steps for the improvement of conditions of cotton textile industry in India. These steps are:
(a) Increasing financial assistance for its modernisation,
(b) Reduction of import duties on the import of textile machineries,
(c) Reduction of excise duties on improved yarn,
(d) Setting up National Textile Corporation (NTC) to run the sick units,
(e) Introduction of new Textile Policy in 1985 for the modernisation and expansion of this industry.