Question

In what way does the cotton industry contribute to the economy of India. Mention any three relevant factors.

Answer 1

Hint: Cotton textiles are the easiest and fastest segment of the textile industry. In India's economy, the cotton textile sector plays a crucial role. The supply of raw cotton, demand, transportation, and other factors all play a role in the establishment of the cotton textile industry in a given place.

Complete answer:
Cotton is grown in more than 12 Indian states, with Gujarat being the country's leading producer with 125 million bales. Cotton yarn is produced and exported in enormous quantities in India. The textile sector in India generates about 5% of the country's GDP, 14% of industrial production, and 11% of total export revenues.

The following are key factors:
(i) India's cotton sector is a major foreign exchange earner.
(ii) It employs a significant portion of the population.
(iii) Supports a wide range of sectors, including chemicals, packaging, and other materials.

Cotton is a major cash crop as well as the most essential raw material in the textile industry. In both rich and emerging countries, the cotton and cotton textile sectors are engines of economic progress. Cotton production is undergoing a revolution in several emerging countries.

Note: In the mills, power looms, and handloom industries, nearly 35 million people are employed. Cotton production, processing trade, clothes, and textile machines all provide indirect employment for millions of people. It is, after agriculture, the largest and most important source of employment in the country.