It occupies a unique position in the Indian economy because it contributes significantly to industrial production, employment and foreign exchange earnings. It is self-reliant and a major source for the economic development of India. It includes cotton textiles, jute textiles etc.
This industry has close links with agriculture, cotton boll pluckers and workers engaged in spinning, weaving, designing, packaging, tailoring and swing. This industry creates demand and therefore supporting many other industries, such as chemicals and dyes, packaging materials and engineering works. Cotton is one of the most widely used and important natural fibers in the textile industry due to its versatility, comfort, and ease of cultivation.
In ancient India, cotton textiles were produced with hand spinning and handloom weaving techniques. After the 18th century, power looms came into use. In the early years, the cotton textile was concentrated in the cotton-growing belt of Maharashtra and Gujarat. Availablity of raw cotton, market, and transport including accessible port facilities, labour, moist climate etc. contributed towards localisation. India has world-class production in spinning, but weaving supplies low quality of fabric as it cannot use much of the high-quality yarn produced in the country.
Jute textiles are products made from jute fibres, which are obtained from the stems of the jute plant (Corchorus spp.). Jute is a long, soft, and shiny vegetable fibre that is one of the most affordable and versatile natural fibres, often referred to as the "golden fibre" due to its colour and economic significance. Jute production is considered more sustainable compared to some other textile fibres due to its lower environmental impact and biodegradability. India is the largest producer of raw jute and jute goods and stands in second place as an exporter after Bangladesh. Most of the mills are located in West Bengal, mainly along the banks of the Hugli River. Kolkata as a large urban centre provides banking, insurances and port facilities for export of jute goods. The growing concern for environment friendly, biodegradable materials has once agian opened up opportunities for jute products.
This industry faces stiff competition in the international market from synthetic substitutes and from other competitors like Bangladesh, Brazil, Philippines, Egypt and Thailand. The internal demand has been on increase due to the government policy of mandatory use of jute packaging. To stimulate demand, the products need to be diversified.