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India

Manufacturing

Textiles

Cotton textiles is a well-established manufacturing industry and employs more workers than any other sector. Production in FY 1992 was 19 billion square meters of cloth (see table 25, Appendix). In Indian textile mills, yarn is spun, woven into fabrics, and processed under one roof. Production as a share of the manufacturing industry fell from 79 percent in 1951 to under 30 percent in the early 1990s as a result of curbs on capacity expansion and new equipment and differential excise duties. The main export market is Russia and other former Soviet republics. The power-loom sector forms the largest portion of the decentralized part of the textile industry. It expanded from 24,000 units in 1951 to 800,000 units in 1989. Power-loom fabric dominates India's garment export industry. There is also a substantial handloom sector, which provides employment in rural areas (see fig. 10).

Data as of September 1995