India's textile sector is the second largest industry after agriculture. It provides employment to about 35 million people. The country's current share in the world textile trade is only 4%, according to the study done by the World Trade Organization. The Indian government says that it can reach to 8% share by 2010.

India is one of the leading producers of cotton, goatskin and cashmere wool. It ranks top in goatskin and third in cotton after China and United States. The fabric industry in India accounts for about 20% of total exports of the country and represent the largest net foreign exchange earner.

Cotton is a soft fibre that grows around the seeds of the cotton plant, a shrub native to the tropical and subtropical regions of both the Old World and the New World. The fibre is most often spun into thread and used to make a soft, breathable textile. Cotton Fabric is noted for its versatility and its natural comfort. Cotton cloth has been used since primitive ages dating back to about 3000 B.C. Today, the main uses of cotton are in the form of garments, home furnishings, and industrial cloths.

In the world production of cotton, China is the leading followed by United States, India, Pakistan, Brazil, Turkey and Greece. Today, production of cotton is one of the major factors in world prosperity and economic stability. In consumption of cotton is consistent in India. Whereas there is an increase in the export trend compared to the previous record.

Cotton is one of the major cash crops grown in the country.  In 1998-99, it was estimated that the area under cotton cultivation in India was 92.87 lakh hectares (Ministry of Textiles – Annual Report 04-05).  However, the area under cotton has been decreasing over the last few years and provisionally it is estimated that it is approximately 89.69 lakh hectares in 2004-05. In terms of global production, India is the third largest producer of cotton behind China and the United States

The main cotton producing states are Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Punjab, Haryana, Rajasthan, Karnataka and Tamil Nadu.  Of these, Maharashtra alone accounts for 35 % of the total cotton production.  In terms of the cotton output, over the last five decades there has been an increase from 30 lakh bales (170 KG each) in 1950-51 to 177.90 lakh bales (170 KG each) in 1996-97 (Ministry of Textiles – Annual Report 04-05).  The contribution therefore to the spinning mills, estimated at 75 % (Ministry of Textiles – Annual Report 04-05) of the total fibre consumed, is substantial.

In this section the structure of the Indian Cotton Textile Networking is discussed in details. Unlike other major textile-producing countries, India’s textile industry is comprised mostly of small-scale, nonintegrated spinning, weaving, finishing, and apparel-making enterprises. This unique industry structure is primarily a legacy of government policies that have promoted labor-intensive, small-scale operations and discriminated against larger scale firms.

To read more>>