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Indian Textile Industry, 1970-1984: An Analysis of Demand and Supply
Economic and Political Weekly
Vol. 20, No. 38 (Sep. 21, 1985), pp. 1603-1605+1607-1614
Published by: Economic and Political Weekly
Stable URL: http://www.jstor.org/stable/4374843
Page Count: 11
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The organised cotton mill sector no longer occupies the 'commanding heights' of the Indian textile industry; that role has been taken over by the apparently decentralised powerloom sector which accounts for at least 48 per cent of the country's textile output, with the composite cotton mills coming a poor second. Also, the share of the mill sector in total cloth output has been falling rapidly. Among the composite mills, two-thirds or more of the units are indubitably sick and have been incurring cash losses. Only the powerloom sector and the pure spinning units seem to be doing well. To understand how these developments have come about, it is important to closely examine the changes in the pattern and composition of demand for textiles. A proper evaluation of the determinants of demand is also necessary to make meaningful inferences for the supply side. This is attempted in the first section of the paper. In his analysis of factors relating to the supply side in the second section, the author attempts to explain three important developments: (1) the lack of modernisation in the composite mill sector, (2) the ascendancy of powerlooms over composite mills, and (3) the decline in the market share of the handloom sector. The paper concludes with some comments on the 1985 Textile Policy.
Economic and Political Weekly © 1985 Economic and Political Weekly