Sunday, June 17, 2018

Overview of the Cotton Manufacturing Industry in India

Indians love cotton and always prefer cotton over other textiles. India is one of the largest producer and exporter of the cotton yarn in the world. Cotton textiles have always been an integral part of the Indian history and the industry has a rich past. Cotton textile pre-dominates the textiles industry in India and is one of the biggest contributors to the Indian economy.

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History
The production, hand weaving process and cloth manufacturing by hand and simple tools has been in practice in the country since time immemorial. But, with the advent of industrialization and modernization, cotton production and processing took a turn toward machines and factories around the 19th century. The first cotton textile factory was set up in Ghusuri, which is near Kolkata in the year 1818. With the inauguration of the first factory, the industry saw quite a many changes and up-gradation and has withstood the trials of each era. Gujarat remains one of the largest producer and manufacturer of cotton and eyelet lace in India.

India is also topping the list of fancy fabric manufacturers in the world.

Classification
Cotton textile industry can be roughly classified into three sub-categories, namely,
  • Weaving mills
  • Spinning mills
  • Composite mills
Problems
Cotton manufacturing and processing has seen a huge change in the methods of production and has adapted to the changing scenarios. In spite of the fact that the industry was well adaptive, it faced a few issues and problems and it sad to say that, few of the problems still persist.
  • Obsolete and out-dated machinery
  • Lack of modernization
  • Shortage in raw material
  • Shortage in supply of power
  • High excise duties
  • Inefficient production units
Remedial measures
With the closure of hundreds of factories at the turn of 1990s, government shifted its focus towards the industry and took remedial measures to prevent further factories from closing down and the industry going for the down slide.
  • Increase in funding for modernization efforts
  • Reduction in import duties
  • Reduction in excise duties
  • Setting up of a governmental body to ensure proper channelizing of resources - National Textile Corporation (NTC)
  • Easy loan facility for the dying units.
The above steps were implemented and have brought about a great change in the industry.

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