COTTON INDUSTRY



Published on 18 Feb 2025

India is the 2nd largest producer of cotton textiles in the world. It is also one of the largest industries in terms of employment, production, and exports.

In India at present, cotton cloth is produced in 3 sectors:

  • Mills – Mills share has come down from 80% in 1950 to 3.3% in 2005-06

  • Power looms: Power looms accounts for 85% of total production in Cotton Textile Industry. They are concentrated in Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh, Madhya Pradesh, West Bengal and Karnataka.

  • Handlooms – They account for 12.5% of the total production in Cotton Textile Industry. They employ nearly 6 million people. There are nearly 38 lakh handlooms in India in which about one-third are located in Tamil Nadu, Andhra Pradesh, Assam, Uttar Pradesh and rest in Maharashtra, West Bengal, Bihar, Orissa, Rajasthan and Karnataka

Locational Factors of Cotton textile industry

  •  Proximity to Cotton Growing Regions: Cotton mills are ideally situated near areas with a strong cotton cultivation presence. 

    • Example: Gujarat mills lie close to the Deccan plateau which is the major cotton producing region

  • Climate: Suitable climatic conditions with warm temperatures and adequate rainfall are ideal for cotton growth.

    • Example: Tamil Nadu's warm, wet climate fosters a thriving cotton industry.

  • Water Availability: Cotton cultivation requires significant amounts of water for irrigation. Locations with reliable water sources like rivers, canals, or aquifers are preferred.

    • Example: Punjab's mills rely on Indus River tributaries as Ravi, Indus, Satluj.

  •  Transportation Infrastructure: Efficient road, rail, and waterway networks are crucial for transporting raw cotton to mills and finished products to markets.

    • Example: Mumbai's port fuels Maharashtra's textile industry with cotton imports and exports.

  • Power Supply: Reliable and affordable electricity is necessary to power the machinery used in cotton processing.

    • Example: Telangana's reliable hydropower provides consistent power supply.

  • Market Access: Being close to major consumer markets or export hubs can reduce transportation costs and expedite delivery of finished cotton products.

  • Example: Cotton mills located in or near Mumbai, a major textile hub in India, have easier access to domestic and international markets.

  • Government Incentives: Tax breaks, subsidies, or special economic zones offered by state governments can attract cotton mills.

Problems faced by cotton industry

  • Raw Materials: Unreliable supply and rising prices of cotton. Shortage of good quality domestic cotton, leading to imports.

    • Example: India, despite being a major cotton producer, faces shortages of high-quality long-staple cotton, leading to significant imports from countries like the US and Egypt.

  • Power: Frequent power cuts and load shedding disrupt production.

  • Machinery: Outdated machinery leads to higher costs and lower quality products. Modernization efforts face financial constraints and labour concerns.

  • Labour: Frequent labour unrest disrupts production.

  • Competition: High production costs due to low productivity and outdated machinery. Struggles to compete with countries using advanced technology and lower costs.

    • Example: Countries like Bangladesh and Vietnam offer lower labour costs and government incentives, making them more competitive in the global textile market.

  • Industry Health: Many mills facing sickness and recession due to the above problems. Decentralized sector with government support puts additional pressure on mills. 

Evolution and Growth of the industry

  • Jute manufacturing existed as a handloom industry but the large-scale industry started in 1855 in Rishra near Calcutta.

  • Then power looms were started and spinning, as well as weaving, was undertaken. It was an export-oriented industry and it made rapid progress.

  • The partition of the country in 1947 created a peculiar problem for jute industry. Almost all mills remained in India but 80% of jute producing area went to erstwhile East Pakistan.

  • The import of raw material from East Pakistan was cut off due to the political differences between the two countries.

  • A consistent effort to increase the area under jute cultivation was able to correct the situation later.

  • It is traditionally in an export-oriented industry and its survival largely depends upon its export performance. The rise and fall of the industry is closely linked with the demand for goods in the international and national markets.

cotton and jute growing area



Tags:
Geography

Keywords:
COTTON INDUSTRY Locational Factors of Cotton textile industry Problems faced by cotton industry Evolution and Growth of the cotton industry

Syllabus:
General Studies Paper 1

Topics:
Resources Distribution

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