Why is cotton industry market oriented?

Factors Affecting the location of Cotton Textile Industry

• Raw Material: It is an agro-based industry and variability in the supply of raw cotton affects the production, there it requires constant supply of raw material. Historically these industries were located close to raw material sources but development in the transport facilities has enabled their spread to other areas.
• Labour: It is a labour-intensive industry and requires cheap labour. It is an important source of employment to large number of population in the country. India enjoys critical advantage over China due to low labour cost in textile sector.
• Climate: Cotton requires black soil as well as hot and humid climate. Cotton yarn cannot be spun successfully under dry conditions. The humidity of the atmosphere must be considerable; otherwise the yarn breaks constantly during the process of spinning.
  • Cotton Industries requires abundant supply of water for various operations like dyeing, bleaching etc.
• Power: It requires a constant and cheap source of power for running powerlooms and textile machines. Earlier, these industries were located close to coal mines areas for cheap and continuous power supply.
• Markets: Availability of domestic and foriegn market for consumption plays a driving force for cotton industries.