CHAPTER-III

GROWTH OF COTTON TEXTILE

INDUSTRY SINCE INDUSTRIAL
REVOLUTION

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Introduction
This chapter covers textile trend in Mills, Powerloom, and Handloom sector at
world level, and also in India. Cotton Textile Trade in Indian Ocean Societies has
stated in present chapter. Here researcher has tried to state the growth of Cotton
Textile Industry since industrial revolution. The details given about the growth of the
Indian Cotton Textile Industry after independence period, in fact, the planning Era
commenced in India since 1951. The systematically analysed the growth of cotton
Textile Industries with focused on the different aspects of the Textile Industries.

Cotton Textile Trade in Indian Ocean Societies

The ancient literary witnessed and given evidence of long existence of cotton
industry in India. The pattern that had emerged in the later Vedic period indicated the
use of cotton cloth for daily wear, kambala or woolen shawl for the winter season,
and fine linen (ksauma) made from fibres of flax for the elite of the society.1 After the
period of Epic, though, linen is referred along with cotton as one of the common
fabrics used by Brahmans and other peoples. Weaving is one of the older art or
technology. The processing and manipulation of fibres for weaving purpose was
developed in Asia and the near East at some time between 7000 BC and 6000 BC,
with archaeological evidence for the use of both horizontal and vertical looms dated
before to 6000 BC.2

Herodotus wrote early on 425 BC, mentioned about wild cotton and cotton
clothing in India, although a century later reports form observers on Alexander
journey to North-West India point out the intensive cotton cultivation. 3 The Jambi
(Sumatra) sultan responded to use overland routes from his upriver base for import
Indian textiles and export forest products. Since very early times Jambi was extend on
the ancient sea route between China and India. A Buddhist priest who travelled from
Canton to India mentioned that, in the 7th century Jambi had independent status.4

Significant Indian Ocean trade is documented since at least from 9th century
AD, with the specific commercial and cultural tie-up between India and east Africa
over the last few hundred years well captured in the history of the emergence of the
kanga cloth. According to Amory’s account it was probably Indian cotton cloth which

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early on slowly but surely replaced original east African products, including
barkcloth, lastly leading production and supply in the 17th century.5 By the mid 19th
century, ‘kaniki’ thin Indian cloth drive out by the strong North American product
locally called merikani, itself rapidly captured by British manufacturers in
Manchester.

The textiles were a leading commodity passing amongst Indian Ocean

societies. Both local and traded textiles had a most important cultural role, from
Arabia to Sri Lanka and from East Africa to Indonesia. Indian cotton textiles probably
remained a major export item for close to 2000 years.6 Textiles also move between
Indian Ocean cultures for centuries, and a single type of cloth may be shared by many
of the regions. Block-printed textiles made in Gujarat for export stay alive from the
10th century onwards. Large number of fragments were identified and used as
garments in medieval Egypt.

Textiles have been main commodities in Indian Ocean societies from early
historical times onwards to the present, both as trade items and as local products. This
was realised when the Europeans came in the region around AD 1500. They
discovered that textiles were the most important object of exchange and are of an
international currency.7 Anyone did not have entrance in the Asian market without a
stake of textiles trade because a region was extremely cloth conscious. Hence, textile
was a main sharing item of creative design.

Indian textiles trade between Egypt and south-east Asia has exposed its height
and weight. Although Gujarat traders abandoned through trade with Sumatra by the
end of the 16th century, Indian textiles, probably introduced during the srivijayan
period, continued to play a role upto the end of the 19 th century.8 But the Indian or
south Asian participation continued for example in the role of a Sunni Muslim
entrepreneur from today’s Pakistan, ‘Abdullah’ Essak, who set up business in
Mombasa in 1887 and claims to have been the first to have ‘names’ or sayings printed
on the decorated cloth wraps used by women.9

Indigenous societies were affected by Indian textile trades with south-east

Asia. There were two types of fabrics in Indonesia which initially produced in north-
west India have had great importance namely, ‘double-ikat silk patola’ and ‘block-
printed’ cotton fabrics. Partly or totally hand spun cotton fabrics were exported from

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the Coromandel coastline, but for the most part of this fabrics were also traded to
Sumatra, and so far only a only some of these have come from the eastern part of the
archipelago.10 the ‘Patola’ and ‘block-printed’ cotton textiles stay alive in that period
in the eastern Indonesian societies because of wider connecting trade network of the
Indian Ocean.

In medieval (AD 1000-1500), there were 132 weaving centres in south India
(based on inscriptional evidence). Andhra Pradesh was comprise 24 weaving centres,
Kolhapur was one of the weaving centre in Maharashtra state, Karnataka comprised
33 centres and also Tamil Nadu comprised 74 weaving centres.11

Industrial Revolution 1760

During the period of 1765 to 1785 quite changes were made in the textile industry.
Cotton textiles is one of the most important example that were made by steam-
powered technology, or of pre-modern industry threatened by the industrial
revolution, or even of Indian livelihood threatened by industrializing Britain.12 the
‘spinning frame’ discovered by ‘Arkwright’ in 1769 and also ‘steam engine’ invented
by ‘James Watt’ at the same time. Besides, ‘Spinning Jenny’ was patented by
‘Hargreaves’ in 1770. The ‘Crompton Mule Spindle’ was patented in 1779, by these
make possible England to fight with Indian cloths. All these inventions were unique
milestone or evidence of the industrial development in England. Accordingly England
got more dominant position trough which could affect all colonies by operation of
machineries and also on markets of colonies. After England found itself powerful to
fight, these ended with 1774, the Calico Act which had already damaged Indian
export trade.13

The Indian cotton industry was disappeared during the age of industrial
revolution, when the huge manufacturings of cotton textiles in the UK were enabled
by the development of ‘Spinning Jenny’ and also by the ‘Spinning Frame’ in 1769.
Moreover, production capacity was increased in a great approach by the development
of the ‘Cotton Gin’ by ‘Eli Whitney’ in 1793.14 During 18th century, all the inventions
including of the spinning frame, steam engine, spinning jenny, Cotton Gin and
Crompton Mule Spindle in England increased uses of mechanical power for making
products. The cotton industry was the first unique industry that witnessed of these

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inventions and hence industrial revolution. By the early 19th century the factory
structure was confidently established in England naturally it step by step extends its
effects on the European and American continents.

By 1869, spreading out the cost-effective transport amenities due to opening

of the Suez Canal thereby fast development of steam shops and railways facilities take
possession of the cottage industries by the factories. The decline of ancient industries
due to foreign competition was not followed of the factory system because of rising
affects of some of the political, economical and social factors. The foundation for
large-scale industries in India was laid by the establishment in Bombay of a cotton
mill in 1854 by an enterprising Parsee merchant, Mr. C. N. Davar. 15

Origin of Cotton Textile Industry in India

The cotton textile is one of the oldest industries in India. The tradition of
spinning and weaving of fine quality cloth goes back to nearly 2000 years or even
beyond. Modern textile industry may be said to have came into existence nearly 150
years ago. In course of time, the cotton textile industry has developed into one of the
most important large-scale industries in India. The first textile mill of India was set up
in 1854 by C. N. Dawar in Mumbai.16 By 1861, Seth Ranchodmal Chotalal set up the
cotton spinning mill in Ahmadabad. After that, the industry has grown slowly but
surely.

In 1954, hundred years were completed to the establishment of first textile

mill in India. The first step was taken by three Pioneers that ‘Cowasjee Davar’ and
‘Maneckjee petit’ in ‘Bombay’ and ‘James Landon’ in ‘broach’. James Landon and
his English partners came together and thought about starting the textile mill on
partnership base, and then within few months they put the foundation stone for the
building construction. In the meantime, founder Mr. Cowasjee Dawar led to establish
the spinning and weaving company, with join together of co-partners, which projected
a mill at Tardeo, Bombay. Maneckjee petit copied Cowasjee Davar’s model, and start
a company with a capital as triple as Cowasjee Davar or James Landon. Once these
three pioneers took the first footstep in 1854, they never looking back, for a great
century of growth had been truly ushered in, leading to the existed four hundred and
seven mills in 1953, distributed over nineteen different states, and 175 towns.17

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 The first hundred years have witnessed and initiatives of very large
transformation in quite different history of textile industry in India. The ownership of
this industry has change position from a small number of persons of abundant
resources to lakhs of shareholders spread among the great intense of regional
affiliation and income category. Over eight lakh workers were on the rolls in 1954,
whereas less than two thousands workers were employed in 1860.18 The yearly
production was around 4500 million yards of cloth and 1600 million lbs. of yarn.
Almost forty-five thousand employees were engaged in different activities such as
administration, technical or clerical etc. besides those were working directly or
indirectly, in the subsidiary and allied industries. After 1870, per capita cloth
availability developed into doubled from all segments namely mills, powerlooms,
handlooms and also from imports. An acknowledgment of that vast growth must goes
to the Indian textile mills. Manchester never took sensitively to the development of
the cotton mill industry in India. In 1860, first time objection was expressed.19

By 1867, when only fourteen mills were existence in the country,

representatives of Manchester manufacturers had complaint against local producers
those were gains in a little bit. The Manchester did not occupy any concrete shape
until the 1870; the numbers of mills in India were small size, so its fabrics did not
have the possibility to compete on anything beyond the boundary. The quietness in
the action of mills formation, that the civil war brought quickness into a new
circumstance of optimism and extension. The growth of the mill industry during 1869
to 1892 was wonderful. It happened at the same times that two notable developments
which affected the industry favourably.

By 1869 opened the Suez Canal and through this naturally special effects on
distance between the India and England. A journey between Bombay and London
then covered only in 6274 miles against 10667 miles until that time, so that was net
saving of 41 per cent in distance of journey in terms of days. 20 Madras and London
were separated by 11280 miles before the happening this amazing engineering
incident (Suez Canal) then distance was reduced to 7313 miles. Calcutta became only
8033 miles away from London as compared to the previous 11900 miles. In 1890,
Indian railways expanded and nearly 11570 miles were over the Suez Canal.

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 The gap was in speed of mills formation because of the civil war but Bombay
had already leaved a mark on the regional distribution of mills. The largest mill was
located in Bombay city with no less than 60000 spindles and 840 looms, and
established as a petit group of mills which was just in beginning situation. In august
1869, 16 mills were in operation in the country, out of which 9 mills located in
Bombay. Another Six centres had the left 7 mills, besides Calcutta claiming 2 mills.
The mills were equally divided between absolutely spinning units and composite
units. The weaving section also had substantial growth, with no less than 4432 looms,
consuming over 50 per cent of the yarn produced.

By 1875 the textile industry of Bombay had success to prove their substance
in the Indian mill sector. Out of 16 mills, 8 were entirely spinning mills and remaining
8 were composite mills.21 the 8 mills which in 1875 were situated outside Bombay
including 3 spinning mills. They produced an average count of 20, around 22000
pounds of yarn per day. Roughly 70 per cent of total output of yarns was sold in the
market.

The new Dharmsee Poonhabhai Spinning and Weaving Co. Ltd., formerly the
Bomanji Hormanji Spinning and Weaving Co., had a mill in Kurla with 90000
spindles. Maneckji Petit mill was the next with around 61000 spindles. 22 The largest
weaving shed was attached to the largest spinning shed, and had more than 1000
looms.

Table 3.1: Growth of Indian Mills from 1881-1921

Average No.
Years Mills Spindles Looms
of Hands
Ending (No.) (No. in 000) (No.)
Employed Daily
1881 57 1513 13707 46430
1891 134 3351 24531 111018
1901 193 5007 41180 172883
1911 268 6357 85352 230649
1921 257 6870 123783 332179
Source: Arno S. Pearse (1930), “The cotton industry of India” England

Table 3.1 shows tremendous growth in textile mills with spindles, looms and
employment since 1881 to 1921. Indian mill sector had raised speedy growth with
spinning and weaving capacity after 1881, thereby huge employment was generated.

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Progress of Cotton Textile Industry in World

The report of Indian cotton committee (1919), Calcutta indicated tremendous growth
in world’s active cotton spindles, during the period of 1900 to 1914, it reviewed
through following figures:

Table 3.2: World’s Active Cotton Spindles, 1900 and 1914

Active cotton spindles
Name of Countries (in 000) Growth in %
1900 1914
United states:
Cotton growing states 4368 12711 191.00
All other states 15104 19396 28.42
Total: 19472 32107 64.89
(18.42) (21.93)
Europe:
United kingdom 45500 56300 23.74
(43.05) (38.46)
Germany 8000 11550 44.38
(7.57) (7.89)
Russia 7500 9160 22.13
(7.09) (6.26)
5500 7410 34.73
France
(5.20) (5.06)
Austria-Hungary 3300 4970 50.61
Italy 1940 4620 138.44
Spain 2615 2210 -15.49
Belgium 920 1530 66.30
Switzerland 1550 1380 -10.97
Sweden 360 560 55.56
Portugal 230 480 108.70
Netherlands 300 500 66.67
Denmark 40 90 125.00
Norway 35 65 85.71
Other European countries 130 200 53.85
Total: 77920 101025 77.13
4945 6500 31.45
India
(4.68) (4.44)
1274 2750 115.85
Japan
(1.21) (1.88)
550 1000 81.82
China
(0.52) (0.68)
450 1250 177.78
Brazil
(0.43) (0.85)
Canada 550 965 75.46
All other countries 520 800 53.84

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 Total: 8289 13265 62.89
Total 105681 146397 38.53
(100) (100)
Source: Report of the Indian cotton committee (1919), Calcutta
Note: figures in brackets shows % to total spindles.

Table 3.2 shows world’s active cotton spindles before world war-I. These may
reveals the spinning capacity in different countries in the world. It is clearly seen from
the above figures that the European countries had get hold highest share in regards
world level Active Cotton Spindles in 1914 such as U.K. (38.46%), Germany
(7.89%), Russia (6.26%) and France (5.06%). Besides these, in Asian countries, India
(4.44%) was number one, Japan (1.88%) on second, china and Brazil was below 1%
in cotton spindles which was in active position. During 1900 to 1914, the growth of
active cotton spindles was 64.89% in United States, 77.13% in European countries
and 62.89% in Asian countries. Besides, this growth of India was 31.45%, Japan
115.85%, china 81.82% and Brazil 177.78% respectively.

From the above table researcher observed that the highest growth was in
European countries (77.13%) namely Italy (138.44%), Denmark (125%), and Norway
(85.71%) in 1914. At the same time the growth of Asian countries had 62.89% the
tremendous growth in Brazil (177.78%), Japan (115.85%), and China (81.82%)
respectively. The cotton growing countries of United States had 191% growth in
1914.

British Rule in India

In 17th century the English East India Company obtains a dominant position.
The Moghul Viceroys and later Marathas were powerful enemies of the British East
India Company. They had its control on the territory, through which the trade
pathway passed from ports of Gujarat and Bombay.23 By English colonialists brought
into practice a trick to enrich themselves for trade monopoly in the part of Gujarat and
Maharashtra which remained under Maratha rule till 1818. Industrial revolution
changed the situation. This was accelerated by the British rule in India. The Britisher
dumped the Manchester made cloths in Indian markets that obviously cracked to
handloom industry in India.24 Pre independence era revived the handloom industry.

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Later, the Indian weavers forced to the British rulers to accept specific protective
actions for Indian handlooms.
The East India Company had import monopoly in trade with India; the main
aim was to make profit from sales of Indian goods in the British markets, and by
capturing margin between products prices in India and Europe. Though, the east India
Company did not impound oneself to selling Indian commodities in Britain; half of
the commodities to the European markets.25 the re-export of Indian products to the
European countries were needed by English preventive duties.
At the end of 1860, 9 factories were in operation in Bombay; 6 of them built in
1860 itself26 but within a few months civil war broke out in the USA subsequently
cotton prices touched to the sky. Infact the decade 1860 to 1870 was not very
favorable to the growth of the mill industry. A high price of cotton was the reason that
hit to the young mills in India. One more cause was strict trade glooms in Bombay
which pursued the immense cotton bang. In 1869, Jamshedji Tata built the cotton mill
called ‘Alexandra’ in Bombay.27 They sold it to Naik in 1871, and built a new mill
‘Europress’ in 1877 in Nagpur which was centre of cotton growing and where
availability of cheap labour force. Thus, the industry continued to grow in the region
of Bombay. British Empire began to operate its first cotton mill in Bombay in 1874.
Whereas credit goes to the Parsi businessmen for the growth of textile industries
in Bombay, in the case of Gujarat the credit goes to the Shorffs. Thus, Ahmedabad
became the centre of the modern cotton industry in Gujarat; fundamental resources
erected with the help by local traders, availability of cheap labour force and the
closeness of cotton. The erection of cotton mills in Gujarat initiates early on 1860 by
Seth Ranchodlal Chotalal with his own capital. Chotalal was a Bania closely
connected with the colonials so he got economic support from the princes which
provided him with the essential resources to raise his first mill. His enterprise was
infectious and many other businessmen followed this example, and by 1900 there
were around 27 cotton mills in Ahmedabad. A few well known entrepreneurs were
K.M. Metha, H.K. Kantawala and Samaldas Lalubhai etc.

Even though the credit of the growth of textile industry in India, are given to
Parsi’s and Gujarati shroffs; contribution of the Britisher was not as much as
negligible. The cotton mill was opened in India by a Britisher Jemes Landon, who
came to India in 1843 and became a British founder of the cotton mill industry in
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India. By 1883, with 13 mills a record year in the history of cotton industry of
Bombay28 Eight of them were built by British firms. Naturally, in 1883 the British
made a serious infringe upon the cotton industry in Bombay. The industry admirably
survived two periods of depression; first was during 1896 to 1905 and then the great
depression of the 1930. The industries which had been succeeding in 1895 feel a large
hold back between the years 1895-190029 this was a time of too very bad food
shortages. The food crisis, along with the unhappiness of the handloom weaver,
contributes largely towards this depression of the cotton industry.
The cloth produced by handlooms in India was not negligible. According to the
special board report (1936), two million handlooms in India Producing not less than
1400 million yards of cloth, which was around 26 percent of the quantity of cloth
consumed in India.30 As per as concern mill made production of cloths, handlooms,
and imports of cloth; nearly 5000 million yards was available for consumption in
India.

Cotton Textile Industry before war-I

First cotton mill i.e. ‘Bombay spinning and weaving company’, which start its
formation in 1851, and completed in 1854. There after this industry had developed
very slowly, while the ‘oriented spinning and weaving company’ started in 1858 by
Manekjee pettit. The American civil war and the yarn trade in china gave substantial
tonic to initiation of the industry on a large scale so that the number of mills increased
in Bombay. It clearly reveals that the spinning development was speedily than the
development of weaving section. During the seventies, eighties and the middle of
nineties the spinning industry made a rapid growth in Bombay, particularly due to the
fact that considerable demand of Indian yarn was from china. 31 No assistance has
been afford by the government for the industry to encourage its growth and
development with healthy nature. Whereas the government put up blockades by
introducing tariff legislation which was neither fair nor equitable even it was harmful
to the industry.

Thus the government of India followed a suicidal guideline at the order of the
Lancashire manufacturers. Ultimately the import duties on cotton products were
entirely close down. During the last decade of the 19th century that serious condition
was started for the cotton textile industry which became glaring in 1927.32 The history

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of the development of this industry during the 20th century can be divided into two
periods, the one ending with the close of the great war of 1914-18 and onwards.33 It
was proposed to study the growth of the industry with reference to the number of
mills, spindles, looms and also with regard to the production of yarn and piece-goods.

War-Time Problems of the Industry

During war time, Dependence of the textile industries was on the foreign countries
for regular supplies of the essential component such as dyes, chemicals, etc. All this
things had slow down the growth of this industry.34 Whereas the World war had
exhibits remarkable impact on the cotton textile industry in India and its bright future
by providing opportunities. The war provided the capital and opportunity for the
Indian mills speedily to increase cloth production in a huge manner. In middle of the
1920, cotton cloth got more protection, the benefits of which was shared by
handlooms and Indian mills. This new competition necessitated supplementary
adjustments in specialization of handlooms.35 In interwar period, with the expansion
of Indian mills in cloth production, handlooms constantly move back from the rough-
average coloured cloth.

The Industry during Post-War Boom 1919-1922

These three years straight away after world war first, were a brief period of
abundantly prosperous for the mill industry in India in spite of the fact that the year
1919-20 opened throughout the sad effects of the failure of the monsoon and the
influenza epidemic of the previous year. There were no increase in the number of
mills working and that the expansion in the number of looms. Spindles were
comparatively small share to the difficulties in getting new machineries in the post
war situation. Exports of yarn and cloth soon after a flow in 1919-20 come back to
their previous stage. The large growth was observed in the exported of yarn during
1918-19 mainly because of the raising exports to china.36 The prosperity of the cotton
textile industry in these years was due quite to world issues, or in other words was
quite a reflection from the excited wide-reaching explosion than to regular growth. In
the abnormal conditions of the period instantly after the war, the imports of yarn and
piecegoods in 1919-20 fell to the lowest level touched for a generation, those of yarn
being in fact the smallest recorded since 1866.37

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Bombay during 1918 to 1925
The World War first had affects to wages in Bombay and Ahmedabad. The
Bombay mill owners association had taken first joint action in 1918 when a 15
percent dearness allowance granted to all workers in all Bombay mills; irrespective of
the fact either operational works on time basis or piece rates basis. After that increase
granted on the 1920 when 20 per cent extra was given to male workers on the time
and piece rates and 40 per cent extra to male operators on piece rates, the total
percentages amounting to 55 and 75 respectively.38

The development of the cotton mill industry in Asia since the war has gone
quick faster than is generally being realized, and this rapid expansion of industry in
Asian countries that we must point out the major cause that depression has been felt
for a number of years in all parts of the world particularly in Lancashire.

During that particular period the actual growth of cotton spinning machinery exposed
by the following figures:

Table 3.3: Growth of Spindles in top Asian countries during 1914 to 1930 (in 000)
Country 1914 1930 Growth in %

India 6397 8807 37.67

Japan 2414 6837 183.22

China 800 3699 362.37

Source: Arno S. Pearse (1930), “The cotton industry of India” England

The actual growth of cotton spindle during 1914 to 1930 was 37.67% in India,
183.22% in Japan and 362.37% in China. (table 3.3) The relatively small growth in
spindles that in India, Japan and china in relation to the increased population had
definitely contributed in the direction of creating with the intention of self-satisfied
with which in the years instantly after the war Europe considered this growth. A
careful inspection of these overall points come to the conclusion that the above stated
growth of 10231 thousand spindles really represents an equality of about 22 million
the same spindles in Lancashire.39 The huge significance of this domestic industry is
not satisfactorily realized. It is approximately calculated that there were 500 lakhs
spinning wheels called ‘charkas’, which yield about 48 lbs. of yarn per spindle per

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year, and almost 20 lakhs handlooms in India. Mahatma Gandhi himself took efforts
to promote the use of the ‘charkas’ and he has been success in this movement at some
extent subsequently improvement has been made in the spinning wheel besides cash
awards were offered for additional expansion of the movement.

According to the ‘Noyce’ report-1927, handlooms sector was supplied about

26 per cent of the total consumption of cloth in India. The importance of this industry
is shown in the following table, which compares hand oven, mill-made production in
India and also imports:

Table 3.4: Hand Oven & Mill-Made Cloth Production in India and Imports
(Million yards)
Years 1921 1922 1923 1924 1925 1926

Handloom woven 1148 1190 1341 1005 1256 1160

Mill production 1954 1970 1702 1725 1732 1581

Foreign cloth imported 1529 1710 1374 1467 980 1405

Source: Arno S. Pearse (1930), “The cotton industry of India” England

We may broadly observed from the above table that mills occupied highest
share in production of cloth while indicates down flow in the country, imported cloth
from other countries had also major portion during 1921 to 1926. (table 3.4)
Handloom woven cloth was behind mills made cloth regarding production. Hand
loom weaving is one and only way of survive to the weavers class in almost every
territory/province, particularly in the large urban centres. Weavers income is stated to
be rupees 5 to 6 per week. All looms were made locally, only the shuttles looms were
imported from England, but even these are beginning to be made in some parts of
Bengal and madras.

In southern India generally colored yarns were used in hand weaving, and
natural blue was also used extensively, but subsequently it replaced by artificial blue
and sulphur colour. Turkey red yarn was largely import from England, further a small
quantity of yarn was dyed in the Bombay mills. The hereditary weaver’s upto that

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point were stick to the older types of pit looms, but those who have lately accepted
weaving as an profession, either main or subsidiary, use hand looms with fly shuttle.

In many districts had weaver’s cooperative societies those obtaining yarn by paying
money, make a cloth and sell it. In some parts there were existed factories containing
only hand looms.

In the year 1929, 219 (69.75%) Cotton mills were geographically located in
Bombay island/presidency with covered 59.51 lakh (67.57%) spindles and 1.32 lakh
(75.86%) looms and all these provided daily employment to 2.14 lakh (61.85%)
peoples as against 314 mills in India covered 88.07 lakh spindles and 1.74 lakh looms
with providing daily employment to 3.46 lakh peoples in India at the same time.
Beside this, rest part of India had only 95 (30.25%) mills with 28.25 (32.43%) lakh
spindles and 42 lakh (24.14%) looms with provides daily employment to 1.32 lakh
peoples (38.15%). It is clearly reveals that Bombay presidency had majority of the
mills with spindles and looms this provided employment to more than 60% of
employed persons in the country. (table 3.5)

Table 3.5: Geographical Distribution of the Cotton Mills in India (In 1929)
No. of No. of Average No. of
No. of
Location Spindles Looms daily employed
Mills (in 000)
(in 000) (in 000)
Bombay Island 219 5951 132 214
/presidency (69.75) (67.57) (75.86) (61.85)
95 2855 42 132
Rest of India
(30.25) (32.43) (24.14) (38.15)
314 8807 174 346
Total
(100) (100) (100) (100)
Source: Arno S. Pearse (1930), “The cotton industry of India” England

Cotton Textile Industry in World War-II

The cotton textile industry was in very critical condition during the World War
Second. The explosion of 1937-38 was already ended and stock was accumulated
with consequently lower price level. The number of spindles and looms were inactive
and night shifts had to be closed down.40 After that war started immediately in
September 1939; cotton trade rely on their past happening war first of 1914-18,
expected that increased prosperous and accordingly develop an exciting blast in the
beginning period of the war. The number of mills increased from 389 to 406 during

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the war times in 1939 to 1944, and capital investment get in touch with figure of
rupees 52 crores in India. That was indication being sufficient to prove that textile
industry did construct speedy developments during the Second World conflict. India
was the only country with a well developed cotton textile industry before the eastern
countries opened to trade. In the year of 1942-43, there was a sharply rising in prices
of piece-goods responsible to increased exports, increased demand from government
and also increased demand from civilians.41

A critical time for the worldwide consumers because as the supply of the mills
was far less than the requirements of the consumers in the world. That was the same
case with our cotton textile industry which was required to fight during the world war
second, problems, some of which were similar to the world war-I and some abnormal.
It was due to the fact that the second war was fight practically on the entrance of India
and it was during this war that India was made the supply base of many theatres of
war. There was need for reconstruction in his social, economic and political
institutions were immediately felt during and later than the world war second. The
cotton textile industry is concerned, the war created many problems which hold back
or else splendid development and success of industry.

Till 1910 India’s cotton mill industry was short as looms but this insufficiency
was remedied to a certain extent even by the purchasing second hand looms.42 At the
stage of global wars; cotton industry was go by the course of a depression as a result
excess production and also limitation of markets take place due to strict foreign
competitiveness. There was an unexpected boom and prices started to going towards
high level. Demand for cloths was increased and the government faced problem that
how to clothes the military peoples which was increasing every day. It was not only a
question that cloths supply as per the demand or requirement but that the specialized
demand could not be met by the stocks. Titanic demands were placed for tent cloth,
mosquito-netting, khaki twill, honey comb cloth, Mazra, canvas bandage, gauze,
sanitary sheets, surgical cotton wool and cellular shirting etc. the mills started its
operation in dual shifts and the output was reaching to highest.

81
 Table 3.6: World Cloth Production During 1938 to 1943
Production Variation
Years
(in million yards) from the previous year
1938-39 4269.3 -

1939-40 4012.4 -256.2

1940-41 4269.4 +257.0

1941-42 4493.5 +224.1

1942-43 4029.2 -464.3

Source: Chaudhari Krishna S (1945), “How to Clothe Four Hundred Millions”

To producing more cloths, the production increased during the years 1940 to 1942.
(table 3.6) India was the front position to meet the cloth demand of foreign countries.
India’s cloth export increased by 362% from 1938 to 1943; It was 177 million yards
in 1938-39 which raised upto 818 million yards in 1942-43. It can be concluded that
the cloth production in India was developed during Second World War.

Handloom production did improve during the war time but when an import
was stopped of dyed yarn from Japan accordingly that badly affects on cloth
production in India. That tried its best to improvement itself accordingly its
production reached almost 30 percent of the mill production in country. But in 1942
the all India spinners association was banned on it.43 Indian handloom industry was
handicapped by the poor quality of the home-made dyed yarn. Their producers
puncture to evidence their skill and design or model sometimes even superior than the
mill products. The handloom industry could be of small lead to the war materials but
it was a welcome attributes in the local market. Distinctive textured cloths famous as
Gorakhpur cloth in a lot of designs, toweling and table napkins in a few categories
appeared and sell very well in the market.

Within seven years between 1875 and 1882 the quantity of mills had expanded
from 24 to 62 in numbers. Spindleage increased to nearly 17 lakhs and loomage raised
to 15100. The number of employees exceeds 50000 for the first time in 1882. Once
again the industry fight against crisis in 1883, when yarn exports to china jump down
till 298000 bales as against 312000 bales in the previous year. The Mill owners
association, Bombay, realized different 1883 as very bad year since the establishment

82
of this industry. Nevertheless, in decade 1882 to 1892, 65 mills were added, raising
the total number of mills to 127 in India. Spindle age increased by 94% so reached at
33 lakhs, which were more than 17 lakhs in numbers existence in the beginning of this
decade. Looms expanded outstandingly by 72%, even though not in the same
percentage as spindles, the number raising from 14386 to 24617 during 1882 to
1892.44 The numbers of daily employment in the organised textile sector build up in
percentage, and in 1890-91 the mill industry, for the first time in its history afforded
daily employment to lakh of employees.

From 1892 to 1901, the number of looms installation in mills, increased by 64

per cent in Indian, whereas spindleage improved by just 50 per cent. Bombay’s
attachment in the development attained by the industry in those years, apart from
weaving section, it was negligible.45 The twentieth century brought brighter days to
the mill industry, apart from the first few months. The first fourteen years of the 20th
century was not all years of prosperity because Ups and downs there were, on the
other hand the industry never fight with anything like a repetition of the 1890. Even as
mills closed down in 1909 and 1910, an unmistakable feeling of trust and confidence
was present.

During the Swadeshi movement, which was in 1904, the industry experienced
a quick recession, as cotton prices blast, whereas yarn prices could not increase in that
percentage. A number of spinning mills were close down, and recorded a deficiency
in their production. A number of companies failed, but were cheerfully taken over at
lower values by new entrepreneurs. The weaving industry, however continued to
prosper, and the industry, as a whole, was left in an extremely healthy position by the
events of the first half of 1904.46 In a latter half of that year, prosperity returned in the
spinning section of the mill industry.

In 1901, 190 mills were existed in India, but 16 these were inactive. In 1904
their numbers had reached to 204; consist of 113 spinning units, 86 composite units
and 5 weaving mills. Weaving section expanded at a much rapidly, near about 6000
looms being added to the 40000 with which the century opened. The number of
employees increased in the same way, 186000 employees were in 1904, as against
156000 in 1901 47 of these 75 per cent were men, about 14 per cent were women, and

83
the remaining were children or youngster. By 1905 cleared the shape of a feeling
which went back at least to the early years of the 1880 when Dadabhai Naoroji had
raised his far-reaching tone to give warning the British masters of the coming
industrial revival in the near future.

Jamsetji Tata with the same predictive vision, had in 1887 described his mill
in Kurla, which had been outlined to manufacturing better-quality yarns and cloths, as
a Swadeshi Mill.48 Between 1904 and 1910 India added 39 mills, 36304 looms and
982337 spindles.49 By 1913 brought a major crisis in Indian banking sector. The
immediate effects of the falling short were clearly appeared in every important
commercial and industrial activity in Bombay and many other cities and towns.
Trading self-confidence was impolitely shocked, and banks started calling back loans
roughly as quick as the depositors take out money standing to their credit. Even if in a
common sense the crisis of 1913-14 in the banking system was external to the mill
industry, its effects were directly felt by mills.50 To the certain extent uncomfortable
circumstance of spinning mills in Bombay, it brought largely strictness that lasted
until after the declaration of the First World War in 1914.

Labour shortage is a problem, a more or less from a long time of this industry
life, entered its most central stage, as employment expanded in older and newly
centers. The fourteen years preceding the World War First had added 71 mills,
1800000 spindles and 60000 looms, apart from dyeing, bleaching and calendaring
sections.51 because of the shortage of labours; double shift working was come into
effects. Longer hours of work with the help of electric lighting, for that reason,
became a rule, at first in Bombay, and soon after in other centres as well. The average
length of the working day rose to 13 hours, and in many cases it went as high as 15
hours.

To conclude, the first decade of the twentieth century was noticeable for
upcoming era of the Indian mill industry. Many problems of the first half century
were proposing good-bye to, with the exception of labour shortage which carry on and
become deeper.52 Men from Lancashire came to India for the first time in 1817, to run
the first mill in India. The second manufacturing enterprise in Calcutta was in the
same way staffed by men who had obtained their training in the factories of
England.53

84
Growth of Indian Cotton Textile Industry after Independence
Since independence, the cotton textile industry has been subjected to a variety
of controls. There was price controls under which prices permitted to the mills did not
provide for all the increases in expenses, for this reason result that the vast majority of
mills had very minor or sometime no profits. When there was no price controls, for
example in the latter half of the fifties, excise duties were sharply raised. This was
excessively unfavorable for profitability of this industry. When the government
awakened about realities then relaxed that restrictions or limitations at some extent, it
was too late. Imports of modern machinery were not possible in that required quantity
for the reason that insufficiency of foreign exchange. So, when the cotton mill
industry’s financial position was far from healthy and the backlog of modernization
and rehabilitation had increased.54

The problems that face by this industry in the independence India are
fundamentally different from those it had to challenge with in the pre-independence
period. The partition of the country in August 1947, itself was a very hard stroke to
the industry. The problem of modernization would not have turn into out of control if
there had been only a reasonable increase in prices of textile machinery. The prices,
however, rose to abnormal levels because the British and other textile machinery
makers had to meet the demand for their products, i.e., textiles machinery, on an
enormous extent from a large number of other newly liberated countries.
The cotton textile industry in India was, and still continues to be, one of the
leading enterprises in the organized sector and situate in a central position in the
national economy. Mills are very important source of revenue to the central and the
state governments, as their total contribution in the form of regular taxes and excess
duties. In addition to cotton growers and the workers, a large number of peoples
depend upon the mill industry for source of living. The cotton traders and fashion
designers, as well as men engaged in the transport services, be indebted their
wellbeing to the cotton textile industry. The number of these persons runs into
millions. The industry is a large consumer of electricity, transportation, and raw
cotton or cotton in the form of bales. Furthermore, a number of supplementary
industries producing dye, chemicals, sizing and packing material etc. Textiles have
been made a significant contribution to the export earnings of the country. Every year
cotton textiles worth more than Rs.700 crores have been exported before 1990.55

85
 Although, from the various five year plans, it become known that more
importance has been given too many other industries namely, cement industry,
fertilizer industry and metal industries. Most of the investments utilized into that
industries and comparatively small investments came to the quota of textiles industry.
In fact, only about six per cent came into textiles in the first five year plan. Similarly,
if we view the targets proposed for the growth of industries in the second five year
plan, we find the same like that whereas in case of further large scale industries the
growth anticipated was more than two hundred per cent, in the case of cotton textiles
it was hardly twenty-four per cent. To examine the subsequent five year plans, also
indicates the similar mode. The reason for this unbalanced model of investments most
likely can be that the industries which have been given priority in excess than textiles,
namely, cement, steel etc. are only public undertakings, whereas the textile industry
is, to a large size, owned by the private sector. In fact, the government holds mills in
this industry account for only about twenty per cent of the total installed capacity in
the country.
The number of textile mills, composite as well as spinning, increased considerably
in this period. However, the spinning mills have shown a greater rate of growth as
compared to the composite mills since 1951. The reason for this difference in the
growth can be traced to the government’s policy for giving preference to the
decentralized sector, by asking the mill sector to provide more yarn for weaving to the
former. The total number of mills has increased in a great extent by 99% in between
1961 to 1985.56 The production of mill made cloth has decreased by 33.9 per cent.
The textile industry has harmed by recession since 1973. The industry has also
faced time to time magic of labour conflict and long periods of strikes in a different
textile centers. The strikes were resolved with compromise that resulting in wages
increase for the workers. These disturbances have played with the industry, and the
forever strike by the textile labor force in Bombay and Gujarat in 1982 has almost
weakened to this industry. Not only labour conflicts, but also the breakdown or
weakening energy situation too holds back this industry. Particularly the mill sector
experienced a dropping knock by the controlled cloth scheme which was introduced
in 1964, but was too late modified in October 1978; with follow repeated depiction to
the policy-makers by the mill industry.

86
 The controlled cloth scheme has been issue a number of restrictions and has been
a target of criticism from all sides. The mill industry has been mostly critical by this
policy as a major aspect in the sickness of the textile industry. One more reason for
this that was framers failed to judge the value of the great changes that were taking
place the dressing habits of even the poorer sections of the population and their
priority for new variety of textiles. Accordingly, controlled cloth was not as much as
required after evaluation of consumption. Though controlled cloth scheme along
cannot be held responsible for sickness in the textile industry, yet it did contribute to
the troubles of the textile industry in the early 1970 in as much as quite a large
percentage of its production was required to be sold below the cost of production. By
1976 as many as 105 sick mills were taken by the National Textile Corporation.57 A
major problem faced by the mills was the restriction on extension. The performance
of textiles has not been satisfactory for given confidence to exports. One reason for
this is the presence of too many competitors, namely USA, China, Japan, Egypt,
Spain etc.

As per above mentioned countries through their modernized industries, have

managed to make never-ending roads into the traditional markets such as the United
Kingdom, West Germany, and Belgium etc. The constraint on the development of
weaving capacity in the organized sector has resulted in less quantity and high cost of
cloth produced. The mill sector also complains of being given protective treatment by
the government, who inclined to favour the handloom sector. For example, the
national textile policies have allowed expansion of capability in the unorganized
sector to generate additional employment opportunities. But the capacity of the
organized sector has been close to freezing. The cost of production in the powerloom
sector is much less than the organized sector. The weaving capacity should be
increased in a balanced manner; otherwise the production of mill cloth as expected
show more decline. All the textile policies have given high priority to handloom
sector and neglected the developmental potential of the organized sector. The Indian
cotton mills Federation, the apex body of the organized mill sector, warned in 1984
that the industry was set for another fall, because, very simply put, it was running out
of cotton.58 In the year 1983 a government committee had advised that many of the
mills run by the NTC would have to be wound up.

87
Table 3.7: Country Wise Distribution of Looms (In 1958)
Name of Countries No. of looms % to grand total
Free world:
India 207600 7.41
Japan 368400 13.15
U.S. 362900 12.95
U.K. 316700 11.30
W. Germany 128100 4.57
France 136100 4.86
Belgium 34600 1.24
Italy 35900 1.28
Others 124500 4.44
Total 2210900 78.91
Communist Areas:
U.S.S.R. 339000 12.09
China 85000 3.03
Czechoslovakia 36700 1.31
Poland 37700 1.35
Others 92600 3.30
Total 591000 21.09
Grand total 2801900 100
Source: M. P. Gandhi (1960), “The Indian cotton textile industry 1958-59 Annual”

In 1958, Japan (13.15%) was highest place in free world in number of looms, U.S.,
(12.95%) and U.K. (11.30%) was on rank 2nd and 3rd respectively. India was on
number 4th with (7.41%) 207600 looms in numbers. (table 3.7)

Ambar charkha program

During 1958-59, the government of India sanctioned rupees 8.11 crores for the
launching of 1 lakh Ambar charkhas and for a making of 25 million square yards of
cloth from Ambar-made yarn. Owing to the number of organization and operational
troubles, the Khadi and village industries commission (KVIC) reformed its earlier

88
goal for the allocation and establishment of Ambar charkhas and throughout the
production of cloth.

The following table 3.8 summarizing the progress on Ambar charkha program as
different aspects up to the period 1958-59:

Table 3.8: Ambar Charkha Program in India (1958-59)

I. Organization Total
1. No. of Institutions:
(i) Regd. Institutions 236
(ii) Co-op. societies 67
2. No. of Saranjam karyalayas:
(i) Large 108
(ii) Small 485
3. No. of Vidyalayas:
(a) Instructors
(i) Main 37
(ii) Sub 24
(b) Carpenters 17
II. Training
1. No. of instructors trained 9559
2. No. of carpenters trained 2019
3. No. of spinners trained 283633
III. Manufacture & Distribution of charkhas
1. No. of charkhas manufactured 266833
2. No. of charkhas distributed 245015
IV. Production
1. Yarn (million lbs.) 7.08
2. Cloth (million sq. yds.) 37.07
V. Employment
1. No. of spinners families 245015
2. No. of weavers families 18711
3. Others 20035
Total employment generates: 283761
Source: M. P. Gandhi (1960), “The Indian cotton textile industry 1958-59 Annual”

During the year under judgment, the commission has taken several initiatives
with a view to improving the quality and quantity of works on the Ambar charkha. As
against the aim of training 3000 instructors, 1500 carpenters and 150000 spinners, in
reality 3760 instructors, 381 carpenters and 114686 spinners were trained by the end

89
of the year. About 30000 spinners were under training program in different
Parishramalayas as on 31 March, 1959. There were total 283761 employments
provided by the Ambar charkha program since its inception to until the end of 1958-
59.

Amongst every hundred yards of cloth provided to the domestic market in India, 70
yards were Mill made cloth, 25 yards were hand woven cloth, and 5 yards were
powerloom cloth. The detailed positions are given below:

Table 3.9: Availability of Cloth (Mills, Powerloom & Handlooms), In India

(During 1948 to 1958)
Cloth production Total of
Per capita
Years Population (Million yards) Columns
Import Availability
(millions) Mill (3,4,5&6)
Handloom Powerloom (yards)
made
1 2 3 4 5 6 7 8
4319 1063 196 36 5614
1948 349 15.1
(76.93) (18.93) (3.49) (0.64) (100)
1949 353 3904 1198 220 94 5416 13.9

1950 357 3665 805 148 7 4625 9.7

1951 361 4076 850 157 9 5092 11.7

1952 368 4598 1109 204 5 5916 14.4

1953 372 4878 1200 221 4 6303 15.1

1954 377 4998 1318 243 4 6563 15.0

1955 382 5094 1480 273 7 6854 16.0

1957 - 5317 1643 303 - 7263 -

4927 1798 331 7056

1958 - - -
(69.83) (25.48) (4.69) (100)
Growth
9.46 14.07 69.14 68.87 -80.56 25.69 5.96
%
Source: M. P. Gandhi (1960), “The Indian cotton textile industry 1958-59 Annual”
Note: 1. Growth in % indicates decadal growth from 1948 to 1958.
3. Figures in brackets shows % to total (col. No. 7).

The mill sector of the cotton textile industry was produced 76.93% of total cloth
subsequently 18.93% by handloom and remaining 3.49% by powerloom sectors in
1948. In 1958, mills were produced 69.83% cloth by decreasing 7.1% in that decade,
90
share of handloom sector increased upto 25.48% and 4.69% cloth by powerloom
sector in 1958 respectively. While consideration of decadal growth, handloom sector
shows 69.14% growth in decade of 1948 to 1958 then 68.87% growth was observed
in powerloom sector and mill sector indicate only 14.07% growth during the same
period. It can be concluded that the share of mills sector among the total of cloth
production had declined even though per capita cloth increased by 5.96% in decade of
1948 to 1958. (table 3.9)

Production trends in Handloom and Powerloom Industries

The following table indicates the trend of cloth (fabrics) output in India during 1950
to 1958:

Table 3.10: Trend of Cloth (Fabrics) Output in India (1950 to 1958)

(In million yards)
Year Handloom Powerloom
1950 805 148
1951 850 157
1952 1109 204
1953 1200 221
1954 1318 243
1955 1480 273
1956 1509 278
1957 1646 303
1958 1798 331
Growth % 123.35 123.65
Source: M. P. Gandhi (1960), “The Indian cotton textile industry 1958-59 Annual”

During 1950 to 1958 the cloth production increased by 123.35% in handloom and
123.65% in powerloom sector. Besides, per weaver out was very low in handloom
industry. The continued encouraging production performance of the handloom and
powerloom sectors must be credited very much to the development in yarn supplies
by mill sector. Exports of handloom cloth continue to be low. During 1958, no more
than 35 million yards of cloth were exported as against 38 million yards in 1957 and

91
60 million yards in 1956. The decrease has attributing to different causes with
competition from other countries and universal depression in global textile market.
The scheme of funding credit services to handloom cooperatives through the reserve
bank of India was started since April 1957.

During the first three years of the second plan the government of India
provides total disbursement about rupees 17 crores on different developmental
schemes for handloom sector. Nearly 12 million looms were in the co-operative sector
among 2.7 million existed looms in the country; at the end of 1958. There were about
9900 handloom cooperative societies with a total membership about 1175000 weavers
at the end of 1958. Shri Lal Bahadur Shastri told on the matter of destiny of the
handlooms for upcoming years in the textile economy of country. This was issue
about the future of Indian handlooms consciously act in response by Shri Lal Bahadur
Shastri, union minister for commerce and industry, in his talk at the thirteenth yearly
meeting of the all India handloom board held at Bombay in June 1959. He said that
“An important point has always to be borne in mind that the output per weaver is very
low at present. The average cloth production per handloom over the complete year is
only around 800 yards. It is no doubt on the increase, but clearly there is scope for
increasing it still further and it is only then that a weavers will be able to get
substantial come back from his handlooms. I would no doubt like it very much that
they should all come under the umbrella of cooperative system”.

The Santanam committee appointed by the government of Tamil Nadu in 1972

reported that only 30 per cent of Handlooms in Tamil Nadu were under co-operatives
and largely of the remaining 70 per cent were performing under private producers. By
1957 a detailed survey was made of the textile centres in Tamil Nadu. This confirmed
that the largest attention of textiles was in Coimbatore, where more than forty per cent
of the total labor force in the cotton industry was concentrated. The textile centres
during medieval south India, had three factors as commonly that was a similar type of
soil, availability of dyes and closeness to ports. That centres were usually prosperous
in black soil best suited to cotton cultivation. According to the economic report-1957,
cotton cultivation was widespread in the black soil area of Coimbatore, Madurai,
Tirunelveli district.59

(Table 3.11) During period of fifteen years i.e. from 1951 to 1964 covered by three 5
year plans, consumption of fibres increased by an average rate of 5.7 per cent per

92
year. An average growth rate was 7.25 per cent per year during the first plan does not
seem to have recovered fully from the sharp decline it went through in the second
plan and was just about 4.38 per cent per year during third plan period. It is noticeable
that the growth rate of cotton consumption has consistently fall behind the overall
increase and average around 4 per cent during the third plan. In a rough words, it can
be says that while an average rate of increase in consumption of all fibres is about 6
per cent per year, that of cotton is about 5 per cent, rayon nearly 11 per cent and
synthetic fibre nearly 30 per cent. It is clear, therefore that man-made fibres, mainly
through synthetic fibres.

Table 3.11: Average Annual Rates of rising Consumption of Textile Fibres

First plan Second plan Third plan
1951-52 to
Particular 1951-52 to 1955-56 to 1961-62 to
1963-64
1955-56 1960-61 1963-64
Cotton 7.04 2.40 3.88 5.31

Rayon 11.33 4.95 8.02 10.96

Synthetics --- --- 134.92 ---

Total 7.25 2.58 4.38 5.70

Source: E.S.R.F., (1967): “Textiles 1960-1975”, New Delhi.
Note: 1. figures shows average annual growth in percentage.
2. ‘---’ indicates that data were not available.

Table 3.12: Per Capita Availability of Textile Fibres in India

Particulars 1951 1956 1961 1965

Total fibres available (million kg) 727 991 1119 1200

Fibres exported (million kg) 103 92 80 77

Net available for domestic use

624 899 1039 1123
(million kg)

Population (million) 363 398 443 490

Per capita availability (kg) 1.7 2.3 2.3 2.3

Source: E.S.R.F., (1967): “Textiles 1960-1975”, New Delhi.

93
 It is rightly say that, despite the three five plans, the clothing standards of the
mass Indian population had remained static, at a low level around 2.5 kg per head, per
capita consumption having remained at 2.3 kg throughout this period. While the
aggregate supply of textile fibres has increased by about 24 per cent between 1956
and 1965, per capita consumption has not advanced correspondingly. (see table 3.2)

Weaving capacity of the mill sector has been pinned at 200000 looms since
1950. It has, however, been allowed to expand on the handlooms and powerlooms,
with the result the number of spindles has increased from 11 to 15 million between
1951 and 1964. On the other hand, the weaving capacity of the handloom and
powerloom sectors is predicted to have increased by 60 and 200 per cent respectively,
the expansion having taken place at the cost of the mill sector.

Table 3.13: Production of Cotton Fabrics (cloth) in India

(Million metres)
Sector 1951 1965 Growth %

Mills 3727 (79) 4584 (60) 22

Powerlooms & Handlooms 1013 (21) 3060 (40) 202

Total 4740 (100) 7644 (100) 61

Source: E.S.R.F., (1967): “Textiles 1960-1975”, New Delhi.

Note: figures in brackets shows percentage (%) to total.

The overall increase in cotton textile production has been of the order of 4%
per year during 1951 to 1965. During this period, the handloom and powerloom sector
has increased its output three fold, from 1013 to 3060 million meters and accounts for
nearly 40 per cent of the total output. Likewise Cotton cloth production by Mill sector
increased from 3727 to 4584 million meters which accounts 60% of total production.
(table 3.13) It is not possible to say even as actually ban on the expansion of the mill
sector has resulted in the clearly dullness in per capita clothing standards.

94
Table 3.14: Fibre-Wise Composition of Domestic Demand (Percentage)
Particulars 1961 1964 1970 1975

Textile Fabrics:
Cotton 93 90 85 75
Rayon 07 08 09 10
Synthetic * 1.5 06 15

Textile Fibres:
Cotton 95 94 91 85
Rayon 05 05 06 07
Synthetic - 01 03 08
Source: E.S.R.F., (1967): “Textiles 1960-1975”, New Delhi.
*Negligible.

The analysis indicates a progressive turn down in consumption of cotton

textiles from 90% to 75% during 1964 to 1975, accompanied by a ten-fold growth of
synthetic fabrics from 1.5% to 15% in the same period. (table 3.14) The composition
of domestic demand is also expected to suffer a change, away from natural fibres, as
indicates in above table. In spite of the comparatively sharp fall in cotton textiles, it is
expected that cotton textiles will continue to preserve the lions share in mass clothe
markets, where they keep hold of both price and qualitative advantages over their
competitor, rayon and synthetics.

In value terms, the change is even more salient, the percentage breakdown being as
under:

Table 3.15: Demand for Yarn by Value in India (percentage)

Types of Yarn 1965 1975

Cotton 87 60

Rayon 09 09

Synthetics 04 31
Source: E.S.R.F., (1967): “Textiles 1960-1975”, New Delhi.

In terms of value, cotton yarn decreased by 27% in decade of 1965 to 1975, whereas
synthetic has account for nearly a third (31%) of the value of the total demand in

95
1975, as against only 4% in 1965. Rayon did not show changes in that decade. (table
3.15)

Regional Distribution of Cotton Cultivation

Cotton production in India is highly regionalized. Maharashtra and Gujarat
together account for more than half of the total area under cotton cultivation, Madhya
Pradesh, Punjab and Mysore taking up an additional 30 per cent. These five states,
therefore, account for more than three quarters of the total area under cultivation.
There are, however, wide variations in state wise production levels. Maharashtra
which claims the largest area under cotton in the country, one third of the total,
accounts for only a quarter of the total output. Gujarat, with only a fifth of the total
area, also contributes a fourth of the production.

Table 3.16:
Area, Production, Yield & Consumption of Cotton in India
Cotton
Cotton
Area Consumption Mill
Cotton Production Production Cotton Yield
(Lakh + Non Mill + Small
Year (Lakh B/s of (in 000 tons) (Kg/Hector.)
Hectors) Spinning (Lakh B/s
170 Kg. each)
of 170 Kg each)

1980-81 78.20 78.00 1326.00 166 79.78

74.00 117.00 1989.00 256 108.00
1990-91
(-5.37) (50) (50) (54.22) (35.37)
85.76 140.00 2380.00 278 173.03
2000-01
(15.89) (19.66) (19.66) (8.58) (60.21)
111.42 325.00 496 253.00
2010-11 -
(29.92) (134.14) (78.42) (46.22)
Source: Compiled from Annual Reports (1992-93, 2004-05 & 2011-12), Ministry of
Textile, Govt. of India.
Note: figure in brackets indicates decadal growth in %. *B/s= Bales.

An area under cotton cultivation, production, yield per hector and also consumption of
cotton has been continuously increasing in India. Table 3.16 indicates the increased
area under cotton cultivation in India, yield per hectors is growing, production of raw
cotton and ginned cotton bales are also increasing. Cotton consumption by mills, non
mills increased automatically.

96
Table 3.17: Growth in Capacity in the Organised Mill Sector (1951- 2011)
No. of Mills Spindles
Year Looms installed
Total installed
(31 march) Spinning Composite (in thousands)
(in million)

1951 103 275 378 11.00 195

192 287 479 13.66 199
1961 (86.41) (4.36) (26.72) (24.18) (2.05)
373 291 664 17.89 208
1971 (94.27) (1.39) (38.62) (7.32) (4.52)
415 278 693 21.78 208
1981 (11.26) (-4.47) (4.37) (21.74) (00.00)
777 285 1062 26.67 178
1991 (87.23) (2.52) (53.25) (22.45) (-14.42)
1565 281 1846 35.53 123
2001 (101.42) (-1.40) (73.82) (33.22) (-30.89)
1757 183 1940 42.69 52
2011
(12.27) (-34.87) (5.02) (20.15) (-57.72)
Source: Compiled from Annual Reports (1989-90, 92-93, 02-03 & 2010-11), Ministry
of Textiles, Govt. of India. & Textile commissioner Website, Mumbai
Note: Figures in brackets show decades’ growth in %.

The above figures clearly indicate that number of spinning mills has been
continuously increasing whereas the composite mills (mills with looms) indicate its
declining. The spindles has strengthen from 11 million to 42.96 million since 1951 to
2011, while weaving capacity declined from the level of 195000 looms in 1951 to
52000 looms in 2011. (table 3.17)

Thus, researcher can summarized that, the diversification of weaving capacity

(looms) from mill sector to powerloom sector. Besides the numerical data of textile
commissioner mentioned constantly growth in decentralised (powerloom) sector. The
decrease in weaving capacity is attributable to structural conversion taking place
leading to delinking of weaving units from spinning units.

As per Annual report (2011-12) of Textile Ministry, there were 1946 cotton/man-
made fibre textile mills (Non-SSI) in the country with an installed capacity of 43.13
million spindles 5, 20,000 rotors and 52,000 looms as on Nov. 2011. The capacity
utilization in the spinning sector of the organized textile mill industry ranged between

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80 to 90 % while the capacity utilization in the weaving sector of the organized textile
mill industry ranged between 41 to 62 %.

From the above description we may conclude that, organised (mill) sector
going towards spinning based only and it delinked from weaving process. Powerloom
sector has captured these weaving activity; it is an intermediate process in textile
industry.

Table 3.18: Production of Spun Yarn in India (In 000 tonnes)

100% Non
Year Cotton Yarn Blended Yarn Total
Cotton Yarn
989 167 93 1249
1981-82
(79.18) (13.37) (7.45) (100)
1510 207 107 1824
1990-91
(82.78) (11.35) (5.87) (100)
2267 646 247 3160
2000-01
(71.40) (20.44) (7.82) (100)
3489 796 426 4712
2010-11
(74.04) (16.89) (9.04) (100)
Source: Compiled from Annual Reports (1989-90, 92-93, 2007-08 & 2010-11),
Ministry of Textiles, Govt. of India. & txcindia.gov.in
Note: 1. Figures in bracket shows % to total.
2. Production of spun yarn in mn. kg 1995-96 onwards.

The production of cotton spun yarn in 1981-82 is estimated at 989 thousand

tonnes, which was 79.18% out of total 1249 thousand tones. Similarly 3489 thousand
tonnes, in 2010-11 which is 74.04% out of total 4712 thousand tonnes. It is observes
that the share of cotton yarn is reducing due to growth of other yarn in respect of total
production of spun yarn. On the other hand the production of spun yarn as blended
yarn and 100% non-cotton yarn is increasing. (see table 3.18). It is significant to note
that though yarn production takes place almost totally in the organised mill sector,
even about 85 percent of the total cloth production takes place in the decentralised
handloom, powerloom sectors and hosiery sector. The organised mill sector
contributes only 15 percent of the total cloth production.60

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 Table 3.19 Fibre-wise Production of Cloth (Fabrics) in Different Sectors
(In million metres)
Sectors 1981-82 1991-92 2000-01 2009-10

Mill Sector
Cotton 2923 1651 1106 1465
Blended/mixed 877 666 332 482
100% non-cotton 08 59 232 69
Total 3808 2376 1670 2016

Powerloom Sector
Cotton 2520 6383 6584 10128
Blended / mixed 598 1885 5071 5487
100% non-cotton 1429 4994 12148 21382
Total 4547 13262 23803 36997

Handloom Sector
Cotton 2540 4065 6577 5857
Blended/mixed 60 12 111 137
100% non- cotton 20 46 818 812
Total 2626 4123 7606 6806

All sectors
7983 14647 19718 28914
Cotton (72.70) (64.84) (49.70) (48.58)
1535 2712 6351 7767
Blended/mixed (13.98) (12.00) (16.00) (13.05)
1463 5229 13606 22840
100% non cotton (13.32) (23.15) (34.29) (38.37)
10981 22588 39675 59521
Total
(100) (100) (100) (100)
Source: Compilation of Annual Reports (1989-90, 92-93, 05-06 & 2009-10), Ministry
of Textiles, Govt. of India. &Textile Commissioner Website, Mumbai
Note: figures in brackets shows % to total.

From the table 3.19, researcher observed that, however cotton cloth manufacturing
has been growing but share of cotton fibres is reducing among total cloth production
besides this cloth made by 100% non-cotton fibres growing rapidly and blended
(mixed) fibres also remain static. Figure in table 3.19 indicates share of cotton fibres

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was 72.70% out of total cloth production in 1981-82 it fall upto 48.58% in 2009-10.
Whereas the share of 100% non-cotton growing from 13.32% in 1981-82 to 38.37%
in 2009-10.

As far as the production of cloth and yarn is concerned, this has been steadily
increasing. In 1990-91, total production of yarn and cloth was of the order of 1795
million kgs and 17818 million metres respectively against the production of 1454
million kgs of yarn and 15148 million metres of cloth in 1985-86. It is significant to
note, however, that while yarn production takes place almost entirely in the organised
mill sector; 77% of the total cloth production was in the decentralised sector
(powerloom and handlooms); 8% of the total cloth production accounted for hosiery
sector in 1989-90. The organised mill sector thus contributed only 15% of the total
cloth production for that year.

Table 3.20: Per Capita Consumption of Cloth in India

(Quantity in metres)
Years Cotton cloth Non-cotton Blended/mixed Total

1972 12.50 0.67 0.63 13.80

1980 10.56 1.21 1.66 13.43

1990 7.44 2.75 3.83 14.03

2000 14.16 4.48 11.91 30.55

19.70 5.29 18.13 43.12
2010
(45.69) (12.27) (42.05) (100)
Source: Compiled from Annual Reports (1989-90, 92-93, 02-03 & 2010-11), Ministry
of Textiles, Govt. of India.
Note: figure in brackets indicates % to total

By 1972, Per capita consumption of cloth was 13.80 meters; it is climb upto 43.12
meters per capita in 2010. As per as concern fiber wise consumption of cloth it is
observed the cotton fibre acquire 45.69% in total cloth consumption in 2010 then
blended (mixed) fibre has 18.13% and non-cotton fibre has 5.29% subsequently.
(table 3.20).

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Table 3.21: Textiles Export of India during 1987 to 1991 (Rs. Crores)
Items 1987-88 1988-89 1990-91
Cotton fabrics & made-ups 692.53 821.17 1536.92
(MM/PL)
Cotton fabrics & made-ups 237.61 283.38 407.23
(HL)
Cotton yarn 343.11 236.20 517.10
(Mn. Kgs.)
Source: Compiled from Annual Reports (1989-90 & 1992-93), Ministry of Textiles,
Govt. of India.
MM: Mill made, PL: Powerloom, HL: Handloom

Any general account of history of the Indian artisans in the 19th and 20th centuries
must begin with textile production. In the 1911-31 censuses, a quarter of the workers
in industry were employed in textiles, and mainly in artisanal textiles. The share in
textiles in employment was probably higher about 100 years previously, but it
declined only to stabilize at a percentage that still made it the largest industry by far.61

An important parameter for evaluating the performance of the textile sector is the
generation of employment.

From the table 3.22; it is seen that employment in the organised sector has
registered a marginal decline, while the increase in the handloom and powerloom
sectors has more than compensated this marginal decline. Overall, the total
employment in the textile sector has gone up. The production of cloth in the
handloom and powerloom sector has gone up. The scenario, therefore, is not one of
losing ground employment in the textile sector, but that of greater labour intensity of
textile production as share of the decentralised sectors in the total cloth production
increases. In the handloom sector, employment has increased to a level of 125 lakh
persons in 1993-94 over 112 lakh persons in 1992-93, an increase of 12%. The
production of cloth in the handloom sector has registered an increase of over 40%
during the last two years. In order to increase production and create additional
employment opportunities during 1992-93 the handloom development centre scheme
was introduced. Till now, 122 handloom development centres and 45 quality dying
centres have been set up.

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The figures regarding the levels of employment in the three segments of textile
industry are given below:

Table 3.22: Performance of Textile Sector in Generation of Employment

(During 1986 to 1992)
Employment
Segments Years
(in lakhs)
1986-87 12.05
Mill sector 1987-88 12.30
1988-89 11.04
1989-90 11.60
1990-91 11.00
1991-92 10.56
AAGR -2.06%
Growth % in last 6 years -12.37%
1986-87 73.58
Handloom sector 1987-88 74.84
1988-89 84.25
1989-90 88.64
1990-91 96.87
1991-92 100.00
AAGR 5.98%
Growth % in last 6 years 35.91%
1986-87 35.35
Powerloom sector 1987-88 48.00
1988-89 51.07
1989-90 55.20
1990-91 57.00
1991-92 67.39
AAGR 15.11%
Growth % in last 6 years 90.64%
Source: Compiled from Annual Reports (1989-90 & 1992-93), Ministry of Textiles,
Govt. of India.

Sickness Problem in Textile Industry

One of the serious problems facing by textile sector is the phenomenal of
increasing sickness and closers in the organised mill sector. This fact is essentially
indicative of a fundamental structural change which is taking place in the textile
industry as a consequence of which weaving units are step by step delinking from

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spinning units. The primary causes of sickness and resulting shutting down in the
organised textile industry can be accredited to factors like low productivity of both
machines and labours, increasing competition from the powerloom sector, lack of
modernization, power shortage, global competition, huge accumulated losses, over
debts, labour absenteeism, lack of skilled labours, miss-management and many others.

Table 3.23: Closure of Cotton/Man-Made Fibre Textile Mills in India

No. of Mills Closed Installed Capacity Employees
Year Spindles Looms on roll
Spinning Composite Total
(000) (00) (000)
1980-81 08 05 13 319 40 27
1990-91 50 55 105 3126 352 161
2000-01 262 221 383 8964 690 344
2010-11 471 81 552 9845 372 305
Source: Compiled from Annual Reports (1989-90, 92-93, 01-02 & 11-12), Ministry of
Textiles, Govt. of India. & Textile Commissioner Website, Mumbai.
Note: workers on roll of the mills affected due to closer of mills.

The increasing phenomenal of sickness and closure has been a characteristic

of the organised textile industry since 1980. The number of closed mills went up from
13 by the end of 1980-81 to 105 in March, 1991. However it has now grown up to 522
at the end of March 2011. This is indicative of a fundamental structural alteration in
the textile sector as a result of which the weaving mills in the organised segment are
losing ground to the weaving units as decentralised small scale sector viz.
powerlooms on account of greater cost effectiveness of the latter.

National Textile Corporation (NTC)

The rising cost of raw materials, trade unions attitude, and increasing
competition from foreign countries in the world markets and government policies and
controls in respect of production and distribution have all contributed to the sickness
among many cotton textile mills in the country.62 The national textile corporation
(NTC) was set up to look the sick textile mills. By 1985, the NTC had taken over the
management of about 125 sick mills. through the NTC has been taking measures like
modernization and rationalization of sick mills, a majority of the 125 sick mills taken

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over by the NTC still continue to be sick and are running at a loss which is being
made goods by imposing taxes on people.

The NTC, managing about 125 sick mills, suffered a loss of Rs. 99 cores
because of increases in cotton prices, wages and salaries, unfavorable market
conditions, slow pace of modernization and replacement of outdated machinery. The
Indian textile industry has been facing some significant short-term and long-term
problems. Some of the short term problems are high prices of cloth, large
accumulations of stocks enhancing the storage costs, shortage of raw material and of
power, lack of adequate liquidity due to poor sales and almost stagnant demand.

Some of the long term problems faced by the Indian textile industry are slow
pace of modernization and urgent need to replace old and outdated technology,
consequent low productivity rising cost of production, low level of profitability and
increasing sickness among the cotton textile mills in the country and rising
competition from south Korea, Hong Kong, Taiwan and Japan in world textile
markets.63

Growth in the Powerloom Sector

During the 20th century, there has been substantial development in mechanical
devices of weaving operations. A number of new types of looms have come into
manufacturing use, whereas older types have been developed and their capacity
extended. The beginning of power to the small scale aspects of the textile industry
was the originating point in the development of cottage powerloom industry in India.
The word powerloom originated long back.

The powerlooms came into existence in the early part of 20th century when the
factory system was in its initial stage and the newly invented mechanical devices were
being adopted, some of the prosperous handloom weavers of the Bombay region took
initiative in setting up powerloom establishments and large numbers of powerlooms
initially installed were second hand from the mills. By 1922, Powerlooms were
introduced in the Indian weaving industry. In fact, it was a most important break
through the Indian textile industry as man power was substitute mechanical power.
Powerloom were introduced in handlooms centres, where the handlooms have been
deprived of their market and were worked by weavers.

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 Since 1958 there has been a burst in the growth of unauthorized powerlooms
in the country, assisted mostly by the high frequency of excise duty on mill cloth and
the lack of any restriction on production by small powerloom units with four or less
looms. The coming into existence of a large number of illegal powerlooms made
serious inroads into the available supplies of yarn, creating in its wake, serious
problems to the handloom industry in the matter of its most vital raw material.64

The decentralised powerloom sector performing a central task in meeting

clothes needs of the country. The textile policy description of June, 1985, imposed
compulsory registration of powerlooms in the decentralised powerloom sector. Also
the state authorities were authorized to register the powerlooms in terms of the textiles
(control) order, 1986, under new policy. The state government or union territory
management has been requested to increase speed of registration of powerlooms
wherever needed.

The estimate numbers of powerlooms in the country at various stages are as below:
Table 3.24: Growth of Powerloom in India (1942 to 2012)
Year No. of powerlooms Growth in % AAGR %
1942 15000 - -
1956 27000 80.00 5.71
1964 145843 440.16 55.02
1977 347000 137.93 10.61
1986 638764 84.08 9.34
1992 1200000 87.86 14.64
2001-02 16,66,033 38.84 3.88
2011-12 22,98,377 37.95 3.80
Source: compiled from Annual Reports (1992-93, 02-03 & 11-12), Ministry of
Textiles, Govt. of India.

The textile minister published figures of powerlooms of India through its

annual reports. In the respective table mentioned number of powerlooms in India
since 1942 to till 2011-12 which composed through some annual reports of textile
ministry of India. From the above figures it is seen, the tremendous growth in the
number of powerlooms since 1942 to 2011-12. In the year 1942 there was 15000
powerlooms and the year after 1942 there was steadily growth observed till the 2011-

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12. In the year 2011-12 there is more than 22 lakhs powerlooms in India. It means that
the weaving process has been diversified towards the decentralised (powerlooms)
sector from organised (mill) sector.

The number of powerlooms was 12 lakhs by December, 1992.65 It contributes

72 percent of the total cloth production in the country as against 10 percent by the
mills and 18 per cent by the handloom sector.

Powerloom service centres (PSC): have been set up by the government of

India under the control of the textile commissioner and textile research associations.
These centres conduct regular training programs to educate the weavers in the
efficient handling of looms, development of new designs, improvement of
maintenance of looms besides providing free testing facilities for yarn and fabrics,
conducting surveys of the powerlooms industry and coordinating with cooperative
organizations and state governments in their plans for the development of the
powerloom sector. These centres also provide assistance to weavers in the
procurement of machinery and raw material and for the removal of weaving defects
so as to help them in their day to day functioning.

All India powerloom board: was first constituted as an advisory body in 1981.
The board functions consist of advising the government on matters concerning the
growth and development of the powerloom sector including the steps necessary for
prevention of the installation of unauthorized powerlooms, and the elimination of
undesirable competition between the powerloom and handloom sectors.66

Handloom Sector: A Historical Perspective

During the 16th and 17 th centuries, India acquires a world-wide status for the
superiority of her hand-made cotton fabrics. The superfine Dacca muslins and calicos
were responsible for attracting the European merchant to the country. 67 The market
share of handloom cotton cloth was roughly constant between the 1890s and the
1930s, and no overall decline in loomage can be established from the periodic loom
censuses. Commercial hand spinning of cotton became vanished due to competition
from British and Indian machine spun yarn.

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 In the 20th century handloom cloth production experienced overall growth and
reorganization. The production of cotton cloth expanded by about 30 per cent between
1900 and 1939.68 In the interwar period, surveys of the industry, produced in the
course of the Tariff Board enquiries (during the period 1926-40 for textiles), or the
making of the fact-finding committee report on textiles (1942), create a mixed
impression.

Locating decline:
The composition of handloom cotton cloth output changed dramatically in the
course of the nineteenth century. By 1900, Lancashire cloth induced the handlooms to
specialize in a different way. After 1900, the presence of Lancashire cloth declined
rapidly in the Indian market, from 66 per cent (in quantity) in 1900 to 10 per cent in
1939.69 The tradition of handloom weaving in India has been long and wonderful and
the skill of the hand spinner and handloom weaver of a very to a large number of
people was totally replaced by the increasing use of mill yarn, throw out of
employment those engaged in hand spinning.

For a long time the mechanized spinning mills and the handlooms remained
complementary to each other. The expansion of the weaving as a powerloom industry
brought handicaps to the unorganized handloom industry in its production and
marketing and suffering to the weavers depending only on this industry for their
living. The Indian textile industry consisting of the organised textile mills on the one
hand and the mostly dispersed small scale powerlooms and handlooms on the other
satisfy the clothing needs of the country, besides earning great foreign exchange
through exports.

The looms are generally old ones discarded by composite mills. the fact finding
committee of 1942 reported that in the Bombay region the powerlooms were
introduced in centres where the handlooms had been deprived of their market and
were worked by weavers who formerly plied the handlooms and that these small units
were able to cut down production costs, thereby proving to be serious rivals not only
to handlooms but also to the organised mills.

The handloom industry is the oldest industry in the country and was next only
to agriculture from the point of view of its size and employment example. The textile
enquire committee of 1954 which authorized a sample survey of the handloom

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industry in the country estimated the total number of cotton handlooms in the country
at more than 20 lakh in 1953-54.70 For the purpose of ascertaining the total number of
looms in the country and government of India issued the cotton textiles control order,
1956. The total number of cotton handlooms registered under the act was 29.60 lakhs
at the end of March 1963. On the basis of date on the total number of cotton and other
handlooms given in the fact finding committee of 1942 the number of cotton
handlooms in the country may be placed at 15.79 lakhs in 1941.

The growth figure in 1968 was around 32 lakhs cotton handlooms in India. In
the unorganized set-up obtaining, the weaver has to depend on the mills for getting his
yarn requirements, and because of his financial weakness has to depend on the
master-weaver and middlemen for financial adjustment. The growth of master-weaver
‘mahajan’ system has resulted in the springing up of hired weavers who in many cases
are loom less, in spite of the development of the co-operative organization the core of
the industry is still made up by the master-weavers.71 In the early stage of growth of
the mill industry, the emphasis was on the development of spinning mills which were
to play the assisting role to the handloom industry as the provider of yarn required by
the handloom weavers. When once the spinning mills turned into composite mills and
began to supply their yarn to their own weaving sheds, the supplementary role played
by the textile mills got limits.

With a view improving the economic situation of the handloom weavers the
textiles enquiry committee of 1954 recommended the alteration of handlooms into
powerlooms. By accepting the suggestion government of India laid down the
principles inter alia of allotting the powerlooms on a cooperative basis and of not
insisting for a specific number of handlooms to go out of commission when a
powerloom is put into commission. The conversion scheme was, however, abandoned
in 1961 owing to the opposition from the state government and other interests. The
powerloom enquiry committee of 1964 suggested the revival of the conversion
scheme which was accepted by the government and licenses for installing about one
lakh powerlooms for producing fabrics from cotton and other fibres. The fact finding
committee of 1942 found the total population depending on the handloom industry at
ten million.

Since 1958 there has been growth of unauthorized powerlooms in the country,
supported chiefly by the high rate of excise duty on mill cloth and the nonexistence of

108
restriction on production by small powerloom units with four or less looms.72 The
coming into existence of a large number of unauthorized powerlooms made serious
ways into the available supplies of yarn, creating in its wake, serious problems to the
handloom industry in the matter of its most vital raw material. All India handloom
board, set up for developing the handloom industry and for improving the economic
condition of the weavers has been doing constructive work.

Locational Pattern of Textile Industries in India

Raw cotton not being a weight losing raw material, it is not very enforced that
cotton textile mills be established near the source of raw material, namely raw cotton.
Also, it so happens that the cost of transporting cotton and cloth are practically the
same. But the cotton textile industry has tended to move to regions where there is easy
availability of transport facilities to move cloth to different consumption centres.

Till about the first two or three decades of the 20th century, cotton textile
industry was mainly concentrated in the city of Bombay. This concentration of cotton
textile industry in Bombay for long was due to important factors such as Humid
climate of Bombay helpful to cotton spinning, Easy and adequate availability of
transport facilities in and around Bombay to take cotton cloth to the different
consumption centres, Easy availability of funds through a network of financial and
banking institutions, Easy advertising and marketing facilities, rich availability of
skilled labour and technicians, Easy availability of raw cotton grown in Bombay
surroundings like Kandesh and southern Maharashtra and Gujarat and Availability of
excellent sea port conveniences greatly helpful for exporting cotton textiles to foreign
countries both in the west and east.73

During Post world war-II: after the period of world war second, there was a
tendency towards the spreading of cotton textile mills to further parts or states in India
such Gujarat, Tamil Nadu, Madhya Pradesh, Andhra Pradesh, Bihar, Kerala and
Delhi.74

Following reasons were responsible for the dispersion of cotton textile industry to
different parts of India since independence:

109
 Over population in Bombay, rising rents and land prices, rising wage rates, labour
conflicts and government policy of not allowing any new textile mills to be
started in Bombay and in fact offering some concessions if an factory owner
wants to shift a cotton textile mill out of Bombay,

 Offers by other states on some concessions, if industries are established there,

 Development of means of transport and communication in different parts of the

country facilitating transportation of raw cotton and other inputs in from different
centres as also finished products to different consumers markets,

 Availability of cheaper labour outside Bombay and also the fact that textile
industry does not require highly skilled workers in a large number, most
processes being within the reach of ordinary labours who can learn the simple
skills easily,

 Abundant availability of raw cotton in different parts of the country where it is

widely grown and,

 Substantial development and availability of electric power in different regions of

the country.

National Textile Policy 1985

The government of India declared its new textile policy in June 1985. This
policy aims at increasing production of cloth of standard quality at reasonable prices
in order to meet the needs for cloth of increasing population in the country.75 While
aiming at this objective, employment potential as also export potentiality of the
industry were to be kept in view.

In this textile policy framework has had the following dimensions:

 Textile industry will be viewed in terms of its different stages, namely, spinning,
weaving and processing,

 The textile industry is to be provided with more flexibility of different types of

fibres and,

110
 There would be realistic policy in regard to capacities of units. Lower taxation
will be passed on to consumers in the form of lower prices and taking steps to
promote the export of man-made fibres and yarn,

 And lastly, by the end of the seventh five year plan, the entire production of
controlled cloth or janata cloth is to be moved to the handloom sector.

National textile policy 1985 as proposed more flexibility to units in using different
types of fibres, make available increasing quantities of man-made fibres at reasonable
prices by taking steps to increase their domestic production, lowering of taxation on
man-made fibres or yarn both with view to encourage their domestic production and
with the hope that the benefit of lower taxation will be passed on to consumers in the
form of lower prices and taking steps to promote the export man-made fibres and
yarn.76

The textile policy 1985 has made a fairly complete statement on the question of take-
over and revival of sick cotton textile mills. This policy was an attempt at their
rehabilitation with a comprehensive package. When a cotton textile unit has become
sick because of faulty management, that management will have to be replaced by
more experienced managerial personal. There should be a rehabilitation fund for the
assistance of affected textile labor force for a limited period of time and money for
this fund is to be raised by a cess on the cotton textile industry.

On the other hand, this textile policy at the same time made the statements
that: “take over by the government or nationalization of such sick units does not
provide solution to the problem of sickness and the government would not as a rule
interfere in such cases”.77

Critical Appraisal of Textile Policy 1985

By this policy government of India reduced the tax burden on synthetic or
man-made fabrics; their production would be raised so as to meet increasing demand.
It was feared that the powerloom sector is to be expected to the adversely affected by
the textile policy 1985. An entire load of producing janata or standard cloth
transferred to the powerloom sector. It was known that production of ‘controlled or

111
janata cloth’ leave a very small margin of profit. There is enforcing unfair competition
on the powerloom sector. The mills in the organised sector were put in an advantages
position vis-à-vis powerloom sector.

In short this textile policy amounts to gave maximum concessions to mill

owners in the name of modernization, upgradation of technology and rationalization
of labour. It has been decided not to take over sick textile mills; But there was no
clear-cut policy that how to deal with the sick textile mills taken over by national
textile corporation.

Growth in Trade Unionism –Before & After World War-I

First labour organization came into existence shortly after 1890 under the
leadership of Messrs. Bengalee and Lokhande and the labour journal ‘Deen-bandhu’
or the ‘friend of the people’ was started. It should be noted that there were many
limitations to this organization, the deficiency being that it had ‘no roll of
membership, no funds and no rules. By year 1910, the Bombay workers integrate
themselves into an association known as ‘Kamgar Hitwardhak Sabha’ or workers
welfare society under the leadership of messrs. 78 In 1918, trade unions were organized
in Madras under the headship of Mr. B. P. Wadia. As far as Bombay is concerned, a
number of labour organizations sprung up during and after the war.

As compared with world war-I, insufficiency of labour was extremely felt during
world war-II due to the working of the double or triple shifts by practically all textile
mills particularly after 1942.79 In august 1953, 807170 labours were on rolls of the
industry and 752578 were actually at work every day. 80 By 1913 G. K. Deodhar had
mooted the establishment of the first co-operative society in Bombay mills. The main
developments in the growth of an organised consciousness of their collective strength,
however, took place only during the First World War and the years following it.81

Anusuyaben Saravhai the laboring classes of Ahmedabad found in 1914 a

woman leader who had imbibed the Fabian principles of social welfare and industrial
democracy. First World War did not bring about a considerable increase in the cost of
living till 1917 during that year and thereafter, prices of necessaries in every mill
centre shot up rapidly. Wage increases were give to workers here and there, but

112
talking generally, little was done until 1919 to a large extent offset the resulting
shortfall in real wages. The simmer unhappiness consequently bust into general
strikes in 1919 and 1920.82 On January 9, 1919 mill workers in Bombay raised first
general strike which affecting about 125000 workers. In 1920, one more general strike
brought the industry in Bombay to a standstill for one month from January 2.

Within ten days of the last strike in Bombay being started, 17000 workers in
Madras raised a very successful general strike, and the matter was resolve in favour of
the employees shortly after seven days. On May, 1,30,000 workers in Ahmedabad fall
their tools, under the guidance of the textile labour association. The trade union
movement, led as it was by outsider, was also affected by force of and international
character. After the end of the war the international labour organization came into
existence and the workers of India found their own representatives participating in the
international careful consideration for the first time. By 1924, 9 trade unions existed,
for example, in the Bombay mill industry alone.83

Another general strike affected the mill industry of Bombay in October 1928
and end until January 1929. When the strike of 1928 began, the Red Flag Union, as
the ‘Girani Kamgar Union’ is known has more than 300 members. In the time of the
next three months, which coincided with the general strike, the number shot up to
55,000, only to slump to 800 in the next fifteen months. In April 1934, when another
general strike was organised to protest against the cutting in wages84 it had 6000
members, a level that appear to have been maintained for the next three years. By
February 1940, another strike period, the membership stood at 35,000.

The commencement of the Second World War brought a measure of peace and
stability on the labour front and paradoxically enough, trade unions have emerged
from this quiet phase much better organised. 85

General effects of disputes

The general effects of all the 738 disputes which have occurred in the Bombay
presidency during the period 1 st April, 1921 to 30th June 1929 are showing in
following table:

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 Table 3.25: Disputes in Bombay presidency during 1921 to 1929
Total no. of
Total no. of Total no. of working
Location disputes
workers affected days lost
(1921 to 1929)

Bombay 401 1077927 49297817

Ahmedabad 221 135200 2605087
Sholapur 10 39484 1214434
Viramgam 8 3705 32854
Broach 22 8966 85022
Karachi 14 9893 399554
Jalgaon 7 4445 56990
Surat 12 4840 35254
Poona 11 3763 40903
Rest of the
32 21288 181399
presidency
Total 738 1309511 53949314
Source: Arno S. Pearse (1930), “The cotton industry of India” England

It is seen from table 3.25 that 401 (54%) disputes occurred in Bombay and remaining
339 (46%) of the total number of disputes in the rest part of country. Out of 1309511
work people affected by these disputes, 10,77,927 (82%) were involved in Bombay
city and 135200 (10%) in Ahmadabad city. The total number of working days lost
amounted to 5,39,49,314 out of which the time loss for Bombay city alone amounted
to 4,92,97,817 (91%) working days.

Out of the 402 disputes which occurred in Bombay city, 317 or 79% occurred
in textile spinning and weaving mills. A number of mills in Bombay were built
specially for the yarn export trade to china, for a period of years this was a very
remunerative trade, but when the Japanese started spinning they began with coarse
counts and found that owing to the nearness of Japan to the Chinese market and
owing to up to date machinery they were able to push the Bombay mills entirely out
of china first as regards yarn and later as regards cloth.

Labour Disputes and Strikes

In 1942, a number of common strikes due to financial or political unhappiness
among the operatives. The general strikes reached to an unexpected figure of 694 in

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1942.86 The strikes in 1942 involved 773000 workers with a loss of 5.7 million
working days. The causes were more of a political rather than of economic nature. In
1941, about 10 mills which were the members of the association were served with a
notice by their operative asking for a bonus, an increase in dearness allowance, and an
increase in basic wages. In Bombay city alone, there were 27 strikes in 1942 resulting
in a loss of 224 thousands man working days. Almost all the strikes in 1942 were in
breaking of the Bombay industrial disputes act.87

In 1950, the 158 trade unions within 9 different states were existed in the mill
industry with their total membership over 321000.88 Bombay state headed the list with
50 trade unions and 174000 members madras had 39 unions and a little more than
52000 member’s west Bengal had 29 trade unions and 21000 members, Madhya
Pradesh had 22 unions with 32000 members and Uttar Pradesh with 10 unions had
30000 members. Trade unionism has recorded further progress since 1950 and the
numbers of members probably exceeds 400000 in the centenary year, and cover more
states.

Labour Welfare Activities during War Periods

The labour welfare activities are undertaken by Labour Association and Public,
Government Labour Office and Employers. The Ahmedabad Textile Labour
Association is the first in the field of all possible welfare actions such as ‘Vikas
Mandir’ or social centres are opened in workers localities89 they were availed by an
increasing number of workers. It is interesting to note, that these centres were also
utilized as important courage centres of the labour movement in the city. The
government welfare department at Ahmedabad and Bombay were also run welfare
centres.90 They have spacious buildings, playgrounds, facilities for indoor and outdoor
games, exercise, magic lantern shows and libraries.

Summary:
The tradition of spinning and weaving of fine quality cloth goes back to nearly 2000
years or even beyond. The cotton textile is one of the oldest and large scale industries
in India. In medieval (AD 1000-1500), there were 132 weaving centres in south India
(based on inscriptional evidence). Kolhapur was the weaving centre in Maharashtra

115
state. Modern textile industry may be said to have came into existence nearly 160
years ago.

During the period of 1765 to 1785 quite changes were made in the world
textile industry. The ‘spinning frame’ discovered by ‘Arkwright’ in 1769. Besides,
‘Spinning Jenny’ was patented by ‘Hargreaves’ in 1770. The ‘Crompton Mule
Spindle’ was patented in 1779, by these make possible England to fight with Indian
cloths. All these inventions were unique milestone or evidence of the industrial
development in England. After that England found itself powerful to fight. By 1774,
the Calico Act which had already damaged Indian export trade. The Indian cotton
industry was disappeared during the age of industrial revolution, when the huge
manufacturing of cotton textiles in the UK was enabled by the development of
‘Spinning Jenny’ and ‘Spinning Frame’. Moreover, production capacity was increased
by the development of the ‘Cotton Gin’ by ‘Eli Whitney’ in 1793. The cotton industry
was the first unique industry that witnessed of these inventions and hence industrial
revolution.

The foundation for large-scale industries in India was laid by the

establishment of first cotton textile mill in 1854 by C. N. Dawar in Bombay. The first
hundred years i.e. 1854 to 1954, have witnessed and initiatives of very large
transformation in quite different history of textile industry in India. Even though the
credit of the growth of textile industry in India, are given to Parsi’s and Gujarati
shroffs; contribution of the Britisher was not as much as negligible. By 1869 opened
the Suez Canal thereby fast development of cost-effective transport and through this
naturally special effects on distance between the India to England. The Britisher
dumped the Manchester made cloths in Indian markets that obviously cracked to
handloom industry in India. After 1870, per capita cloth availability developed into
doubled from all segments. An acknowledgment of that vast growth must goes to the
Indian textile mills.

The industry admirably survived two periods of depression; first was during
1896 to 1905 and then great depression of the 1930. This industry in 1895 feels a
large hold back; food crisis, along with the unhappiness of the handloom weaver,
contributes largely in this depression of the cotton industry. The American civil war
and the yarn trade in china gave substantial tonic to initiation of the industry on a
large scale so that the number of mills increased in Bombay. During the last decade of

116
the 19th century that serious condition was started for the cotton textile industry
which became glaring in 1927. The war provided the capital and opportunity for the
Indian mills speedily to increase cloth production in a huge manner.

During war time, textile industries were depending on the foreign countries for
regular supplies of dyes, chemicals, etc. All this things slow down the growth of this
industry. In interwar period, with the expansion of Indian mills in cloth production,
handlooms constantly move back from the rough average coloured cloth. The cotton
textile industry was in very critical condition during the World War Second. The
explosion of 1937-38 was already ended and stock was accumulated with
consequently lower price level. The number of spindles and looms were inactive and
night shifts had to be closed down. That was indication being sufficient to prove that
textile industry did construct speedy developments during the Second World conflict.
It was due to the fact that the second war was fight practically on the entrance of
India. The cotton textile industry is concerned, the war created many problems which
hold back or else splendid development and success of industry. Demand for cloths
was increased and the government faced problem that how to clothes the military
peoples which was increasing every day. The mills started its operation in dual shifts
and the output was reaching to highest. India was the front position to meet the cloth
demand of foreign countries. It can be concluded that the cloth production in India
was developed during Second World War.

Since independence, the cotton textile industry has various controls. The
problems of this industry in the independence India are different from the pre-
independence period. The number of textile mills, composite as well as spinning,
increased considerably in this period. However, the spinning mills have shown a
greater growth rate as compared to the composite mills since 1951 because the
government’s policy given preference to the decentralized sector, by asking the mill
sector to supply more yarn for weaving in decentralised sector. The industry faced
labour conflict and long periods of strikes in India. This forever strike by the textile
labor force in Bombay and Gujarat in 1982 has almost weakened to this industry. The
controlled cloth scheme has been issue a number of restrictions. The mill industry has
been mostly critical by this policy as a major aspect in the sickness of the textile
industry. By 1976 as many as 105 sick mills were taken by the National Textile

117
Corporation. The performance of textiles has not been satisfactory for given
confidence to exports. One reason for this is the presence of too many competitors.

The increasing sickness and closure has been a characteristic of the organised
textile industry since 1980. The closed mills increased from 13 by the end of 1980-81
to 105 in March, 1991 and then up to 522 at the end of March 2011. The primary
causes of sickness and resulting shutting down in the organised textile industry can be
accredited to factors like low productivity of both machines and labours, increasing
competition from the powerloom sector, lack of modernization, power shortage,
global competition, huge accumulated losses, over debts, labour absenteeism, lack of
skilled labours, miss-management and many others. This is indicative of a
fundamental structural changes in the textile sector as a result of which the weaving
mills in the organised sector are losing ground to the weaving units as decentralised
small scale powerlooms on account of greater cost effectiveness. By 1985, National
Textile Corporation (NTC) was set up to look the sick textile mills.

118
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1. Himanshu Prabha Ray. (2005). Far-Flung Fabrics-Indian Textiles in Ancient
Maritime Trade. In Ruth Barnes (Eds). Textiles in Indian Ocean Societies. (pp. 17-37)
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2. Ruth Barnes (Eds.) (2005). Textiles in Indian Ocean Societies. New York:
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3. John Peter Wild and Felicity Wild. (2005). Rome and India: Early Indian Cotton
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4. Fiona kerlogue. (2005). Textiles of Jambi (Sumatra) and the Indian Ocean trade. In
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5. David Parkin. (2005). Textile as commodity, dress as text. In Ruth Barnes (Eds).
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6. Ruth Barnes (Eds). (2005). Op.cit. Pp. 5, 9

7. Ruth Barnes. Ibid. P.1

8. Fiona kerlogue. (2005). op.cit. (pp. 130-148)

9. David Parkin. (2005). Op.cit. (pp. 47-67)

10. Ruth Barnes. (2005). Moving between cultures. In Ruth Barnes (Eds). Textiles in
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11. Vijaya Ramaswamy. (1983). Textiles and Weavers in Medieval South India.
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12. Tirathankar Roy (1999). Traditional Industry in the Economy of Colonial India.
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13. Thakker, N. H. (1949). Indian cotton textile industry during twentieth century
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14. Retrieved from mahacot.com/pdfs/cotton.pdf

15. Dr. N. S. R. Sastry (1947). A statistical study of Indian industrial development.

Bombay: Thacker & co., ltd. pp. 1, 2

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16. Desai, S. M and Mrs. Dr. Nirmal Bhalerao (2002). Industrial economy of India.
(5th ed.). Mumbai: Himalaya publishing house. P. 236

17. Mehta, S. D. (1954). The Cotton Mills of India 1854 to 1954. Bombay: Textile
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18. ibid. p. 2

19. ibid. p. 34

20. ibid. p. 40

21. ibid. p. 41

22. ibid. p. 42

23. Sherry Sabbarwal (1990). Organizational approach to environmental contro. New

Delhi: Ashish Publishing House. P. 13

24. Ektate A.G. (1992). Production and Marketing of Handloom Terrycot cloth in
Nanded district. Ph.D thesis submitted to Dr. B A M U, Aurangabad. p. 21

25. Sherry Sabbarwal (1990). op.cit. P. 14

26. Ibid. p. 17

27. Ibid. p. 18

28. Ibid. p. 19

29. Ibid. p. 20

30. Dantwala, M. L. (1937). Marketing of Raw Cotton in India. Edited By C. N.

Vakil, Calcutta: Longmans, Green and Co. Ltd. P. 9

31. Thakker, N. H. (1949). op.cit. p. 35

32. ibid. p. 36

33. Dr. N. S. R. Sastry (1947). Op.cit. p. 78

34. Thakker, N. H. (1949). op. cit. p. 199

35. Tirathankar Roy (1999). Op.cit. p. 79

36. Thakker, N. H. (1949). Op. cit. p. 47

37. ibid. p. 48

120
38. ibid. p. 141

39. Arno S. Pearse (1930). The cotton industry of India. International Federation of
Master Cotton Spinners and Manufacturers Associations. England: Manchester. P. 1

40. Thakker, N. H. (1949). Op.cit. p. 63

41. ibid. p. 66

42. Arno S. Pearse (1930). op.cit. p. 95

43. Chaudhari Krishna Sahai Srivastava (1945). How to Clothe Four Hundred
Millions. Allahabad: Grand book depot. Pp. 74-76

44. Mehta, S. D. (1954). Op.cit. P. 42

45. Ibid. P. 80

46. Ibid. p. 86

47. Ibid. P. 87

48. Ibid. p. 88

49. Ibid. P. 91

50. Ibid. p. 97

51. Ibid. p. 98

52. Ibid. p. 99

53. Ibid. p. 100

54. Radhakrishna, R. Ruia. (1970). Rehabilitation of cotton mill industry. In Vadilal

Dagli (Eds.) A Profile of Indian Industry. Bombay: vora & co. publishers pvt. Ltd.
p.169

55. Sherry Sabbarwal (1990). Op.cit. P. 24.

56. Ibid. p. 25

57. Ibid. p. 30

58. Ibid. p. 34

59. Vijaya Ramaswamy (1983) Op. cit. p. 6

60. Annual Reports (1991-92). Ministry of Textiles, Government of India. P. 1

121
61. Tirathankar Roy (1999). Op.cit. P. 61

62. Desai, S. M and Mrs. Dr. Nirmal Bhalerao (2002). Op.cit. P. 269

63. ibid. P. 270

64. Krishnamurthy, O. S. (1970). The cotton handloom industry in India. In Vadilal

dagli (Eds.) A Profile of Indian Industry. Bombay: vora & co. publishers pvt. Ltd. p.
188

65. Annual Reports (1992-93), Ministry of Textiles, Government of India. P. 14

66. Annual Reports (1989-90), Ministry of Textiles, Government of India. P. 12

67. Dr. Sastry, N. S. R. (1947). Op.cit. p. 1

68. Tirathankar Roy (1999). Op.cit. P. 62

69. ibid. P. 77

70. Krishnamurthy, O. S. (1970). Op.cit. p.179

71. ibid. p.180

72. ibid. p.182

73. Desai, S. M and Mrs. Dr. Nirmal Bhalerao (2002). Op.cit. P. 371

74. ibid. P. 372

75. Desai, S. M and Mrs. Dr. Nirmal Bhalerao (2002). Op.cit. P. 269

76. Ibid. p. 270

77. ibid. p. 243

78. Thakker, N. H. (1949). Op.cit. p. 145

79. ibid. p. 149

80. Mehta, S. D. (1954). Op. cit. p. 114

81. ibid. p. 134

82. ibid. p. 135

83. ibid. p. 136

84. ibid. p. 138

85. ibid. p. 139

122
86. Thakker, N. H. (1949). op.cit. p. 159

87. ibid. p. 160

88. Mehta, S. D. (1954). Op. cit. p. 142

89. Thakker, N. H. (1949). Op.cit. p. 163

90. ibid. p. 164

123