Read about the properties, factors, challenges and other concepts about cotton textile industry below
About
- Agro based industry
- Labour intensive
- Private ownership
- Up to 18th century, handloom was used but afterwards powerloom came into play.
- First textile mill was set up in 1854 in Mumbai
Properties
- Self-reliant
- Well-established
- Labour intensive
- Provides measured employment
- Major foreign exchange earner
- Comes under small industries
- Agro-based
- Private ownership
Locational factors
- Availability of raw cotton
- Market
- Transport facilities
- Accessibility of port
- Labour
- Moist climate
- Skilled and semi-skilled labour
- Capital
- Nearness of power resources
- Water supply
Current challenges
- Low quality of fabric
- Power supply is erratic
- Old machinery
- Low investment
- Low output to labour ratio
- Competition with synthetic fibre
Problems
- Scarcity of raw cotton
- Supply has always fallen short of demand (inadequate production)
- Have to import (negative balance of payment)
- Strikes by labours
- Stiff competition
- Loss of foreign markets
- Government controls
- Heavy excise duties
- High cost of production
Textile policy (2000)
Government is keen to modernize to face competition from China,Taiwan, Japan, South Korea etc
Steps taken
- De-reserve the government industries from small scale industry category as to make industry internationally more competitive.
- FDI limit of 24% was removed.
- Foreign companies could make 100% investments through FIPB
- 50% export obligation on firms in which foreign equity was allowed, was removed.
Advantages in India
- Robust demand
- Competitive advantage
- Policy support
- Increasing investments
- Future is optimistic
Refer Economics Important Topics for more other such topics