Cotton textile industry is currently India’s largest organized modern industry. This industry has grown at a breakneck pace over the last four decades. This industry employs approximately 16% of the country’s industrial capital and more than 20% of its industrial labor. This industry employs well over 45 million people in total.

There are currently more than 3400 textile mills in the country, with in the public sector, cooperative sector, and in the private sector. Three-fourths of the mills were spinning mills, with the remaining one-fourth being composite mills. Aside from the mill sector, there are thousands of small factories with 5 to 10 looms.

The Government of India has provided assistance to the cotton textile sector through initiatives such as the Scheme for Integrated Textile Parks (SITP), the Integrated Skill Development Scheme (ISDS), the Integrated Processing Development Scheme (IPDS), Market Development Assistance (MDA), and the Market Access Initiative (MAI). Another boost to the Amended Technology Upgradation Fund Scheme (ATUFS) has been provided in the form of a special package worth INR 6,000 crore for the manufacturing and garments sectors. The cotton material industry also expects to increase profit by lowering production costs. To reduce the absolute use or cost of creation and supply to business sectors, the company must identify the smallest expense area. The accessibility of skilled labor, market, and mode of transportation all play important roles in determining a reasonable location for a cotton material industry.


Indian Cotton Industry on world level

The Indian cotton industry is the world’s second largest cotton producer, as well as the world’s largest cotton processor and exporter. It accounts for approximately 59% of global cotton production and 33% of global cotton exports. India is the largest producer and exporter of cotton yarn and fabrics in the world. The Indian cotton industry produces cotton of various varieties and qualities. It is a vital component of the Indian economy, contributing significantly to the exchequer. The country is the world’s largest exporter of cotton yarn, fabrics, towels, and ready-made garments. It is also the second largest cotton seed exporter and the third largest cotton product exporter. In 2018-19, India exported approximately 6.4 million bales of cotton, accounting for approximately 17% of global cotton exports. Cotton is a major export from India to countries such as Bangladesh, Vietnam, China, and Turkey.

Associate Factors

Climate: A moist, mild environment is thought to be ideal for the development of the cotton material industry. In the nineteenth and twentieth centuries, the majority of material enterprises were established in mild and humid climate zones. Models recall the New England region for the United States, the United Kingdom for Europe, and Mumbai for India.

Labor: The cotton material industry is essentially a labor-intensive industry. The material business expects gifted and modest work. Many works, including the treatment of current machines, rely on the work prepared for the business in general. In densely populated areas, modest work is generally available. Low pay has always been a major concern in the area of a cotton factory.

Power Resources: The stock of dominant shows plays a significant role in the limitation of the cotton material industry. In the early stages of development, material ventures were located near water sources such as rivers, lakes, and oceans. Later, with the introduction of coal, it went on to play a significant role in the assurance of modern area. Currently, the stock of power is attracting cotton plants in various parts of the world.

Transport: A suitable mode of transportation is expected for the collection of unrefined components as well as the distribution of finished products: cotton yarn and cotton fabric to the market. These items could be transported by trucks (on the street), rail line carts, or ocean vessels.

Capital: A large amount of capital is required for the establishment of any cotton factory. A small-scale or family-run cotton material industry requires little capital, whereas a large-scale plant necessitates a massive amount of fixed and portable capital.


Dominating States


  • Maharashtra: It is India’s largest cotton textile producer. Mumbai is known as the “Cottonpolis of India.” Sholapur, Kolhapur, Pune, Jalgaon, Akola, Sangali, Nagpur, Satara, Wardha, Aurangabad, and Amravati have also benefited from the textile industry.


  • Gujarat:After Maharashtra, it is the second largest producer of cotton textiles. Ahmedabad is known as the “Manchester of India and Boston of the East,” and it is also the second largest cotton textile industry center after Mumbai. Surat, Vadodara, Bharauch, Bhavnagar, Nadiad, Porbandar, Rajkot, Navsari, Maury, and Viramgam are also important cities.


  • Tamil Nadu:The major cotton textile centers are Chennai, Tirunelveli, Madurai, Tuticorin, Salem, Virudhnagar, and Polachi. Coimbatore is known as the “Manchester of South India” because it is the most important cotton textile center in the country.


  • Uttar Pradesh:The major cotton textile producing centres in the state are Kanpur, Etawah, Modinagar, Moradabad, Bareilly, Hathras, Agra, Meerut, and Varanasi. Kanpur is known as the “Manchester of Uttar Pradesh.”


  • Karnataka:The major cotton textile producing centres in the state are Bangalore, Belgaum, Mangalore, Chitradurga, Galbarga, and Mysore.


  • Madhya Pradesh:The major cotton textile producing centres in the state are Indore, Gwalior, Mandasaur, Dewas, Ujjain, Nagda, Bhopal, Jabalpur, and Ratlam.


  • Rajasthan:Rajasthan major cotton textile producing centres are Kota, Jaipur, Sriganganagar, Bhilwara, Bhavanimandi, Udaipur, and Kishangarh.


  • West Bengal:Kolkata, Howrah, Serampore, Shyamanagar, Saikia, Murshidabad, Hugli, and Panihar are the major cotton textile producing centres in the state.


Industry Issues

Although cotton textile is one of India’s most important industries, it faces numerous challenges. Some of the most pressing issues are briefly described below:


  1. Scarcity of Raw Cotton:The Indian cotton textile industry suffered greatly as a result of partition, as the majority of long staple cotton growing areas were transferred to Pakistan. Despite significant progress in improving raw cotton production, supply has always lagged behind demand. As a result, much of the long staple cotton requirement is met through imports.


  1. Obsolete Machinery:The majority of textile mills are old and have obsolete machinery. As a result, productivity and quality suffer. Textile machinery installed even 10-15 years ago has become outdated and obsolete in developed countries, whereas in India, 60-75 percent of machinery is 25-30 years old.

Only 18-20% of looms in India are automatic, whereas the percentage of such looms ranges from 0% in Hong Kong and the United States to 100% in Canada, 92% in Sweden, 83% in Norway, 76% in Denmark, 70% in Australia, 60% in Pakistan, and 45% in China.


  1. Inadequate Power Supply:Power supply to most cotton textile mills is erratic and insufficient, negatively impacting production.


  1. Low Labor Productivity:In comparison to some advanced countries, India’s labor productivity is extremely low. A worker in India typically handles two looms, compared to 30 looms in Japan and 60 looms in the United States. If an American worker’s productivity is assumed to be 100, the corresponding figure for the United Kingdom is 51. Japan received 33 points, while India received only 13.


  1. Strikes:While labor strikes are common in the industrial sector, the cotton textile industry suffers significantly as a result of frequent strikes by a labor force. The long-running strike in 1980 took a heavy toll on the organized sector. It took nearly 23 years for the government to recognize this and pass legislation to encourage the organized sector.


  1. Strict Competition:The Indian cotton mill industry faces stiff competition from the powerloom and handloom sectors, synthetic fibers, and foreign products.



Over the years, the Indian cotton industry has made significant progress. Cotton yield per hectare has increased significantly, cotton quality has improved, and new cotton varieties have been developed. In order to produce higher-quality products, the industry has also adopted various technological advancements. Furthermore, the industry has benefited from trade policy liberalisation, which has increased access to international markets.

The Indian cotton industry’s future appears bright. With rising global demand for cotton products and the emergence of new markets, the industry is expected to expand further.

Open chat
Hello 👋
How can we help you?