Locational factors of Cotton, Jute, Textile, Iron & Steel, Aluminum- 1 | Geography Optional for UPSC (Notes) PDF Download

Locational Factors

• The positioning of an industry in a specific location is determined by various decisions made at multiple levels. These decisions are influenced by geographical factors as well as factors that are not related to geography. The significance of these factors may change over time and across different locations.
• Numerous geographical factors play a crucial role in determining the location of individual industries, such as the availability of raw materials, water, power resources, labor, markets, and transportation facilities. However, these geographical factors are only relatively significant, as there are also historical, human, political, and economic factors that increasingly impact industrial location decisions.
• As a result, the factors that influence the location of an industry can be classified into two main categories: (i) Geographical factors, and (ii) Non-geographical factors.

Geographical Factors

• Raw Materials: The availability of raw materials is essential for the manufacturing industry. Industries that use heavy and bulky raw materials in large quantities are usually located near the source of these materials. For example, jute mills in West Bengal, sugar mills in Uttar Pradesh, and iron and steel industries near coal and iron ore sources.
• Power: A regular supply of power is necessary for industrial operations. Industries often concentrate around sources of power, such as coal, mineral oil, and hydroelectricity. For example, aluminum industries are generally found in areas with hydropower production.
• Labor: Industries require a skilled and abundant labor force for their operations. Some industries may need large numbers of workers or people with specialized skills. Industries that require a large labor supply are generally located in urban centers.
• Transport: Efficient transport facilities are crucial for the assembly of raw materials and the marketing of finished products. Industries often develop around well-connected port towns or cities with good transport facilities.
• Market: Proximity to markets is essential for the quick disposal of manufactured goods, reducing transport costs, and offering lower prices to consumers. Industries producing perishable or heavy goods often seek locations close to their markets.
• Water: Industries, such as iron and steel, textiles, and chemicals, require large quantities of water for their operations. Many industries are established near rivers, canals, and lakes to meet their water requirements.
• Site: The site for industrial development should be flat and well-served by adequate transport facilities. Industries are now moving towards rural areas due to the increasing cost of land in urban centers.
• Climate: The climate also plays a significant role in the establishment of industries. Extreme climates, such as very hot, humid, dry, or cold conditions, can hinder industrial development. A moderate climate is more conducive to industrial growth, as seen in the Maharashtra-Gujarat region in India.

In conclusion, industries' locations are influenced by various geographical factors, including the availability of raw materials, power, labor, transport, market, water, site, and climate. These factors often determine the success and growth of industries in a particular region.

Non-Geographical Factors

Nowadays alternative raw materials are also being used because of modern scientific and technological developments. Availability of electric power supply over wider areas and the increasing mobility of labour have reduced the influence of geographical factors on the location of industries.
The non-geographical factors are those including economic, political, historical, and social factors. These factors influence our modern industries to a great extent. Following are some of the important non-geographical factors influencing the location of industries.

1. Capital
   • Capital or huge investment is needed for the establishment of industries.
   • Modern industries are capital-intensive and require huge investments. Capitalists are available in urban centres. Big cities like Mumbai, Kolkata, Delhi, and Chennai are big industrial centres, because the big capitalists live in these cities.
2. Government Policies
   • Government activity in planning the future distribution of industries, for reducing regional disparities, elimination of pollution of air and water and for avoiding their heavy clustering in big cities, has become no less an important locational factor.
   • There is an increasing trend to set up all types of industries in an area, where they derive common advantage of water and power and supply to each other the products they turn out. The latest example in our country is the establishment of a large number of industrial estates all over India even in the small-scale industrial sector.
   • It is of relevance to examine the influence of India’s Five Year plans on industrial location in the country. The emergence of suitable industries in south India around new nuclei of public sector plants and their dispersal to backward potential areas has taken place due to Government policies.
   • The state policy of industrial location has a greater hand in the establishment of a number of fertiliser factories, iron and steel plants, engineering works and machine tool factories including railway, shipping, aircraft and defense installations, and oil refineries in various parts in the new planning era in free India.
   • We may conclude by noting that the traditional explanation of a location of the industry at a geographically favorable point is no longer true. Location of the oil refinery at Mathura, coach factory at Kapurthala, and fertilizer plant at Jagdishpur are some of the results of government policies.
3.  Industrial Inertia
   • Industrial inertia is the predisposition of industries or companies to avoid relocating facilities even in the face of changing economic circumstances that would otherwise induce them to leave.
   • Industries tend to develop at the place of their original establishment, though the original cause may have disappeared. This phenomenon is referred to as inertia, sometimes as geographical inertia, and sometimes as industrial inertia. The lock industry at Aligarh is such an example.
   • Often the costs associated with relocating fixed capital assets and labour far outweigh the costs of adapting to the changing conditions of an existing location.
4. Efficient Organisation
   • Efficient and enterprising organization and management is essential for running modern industry successfully. Bad management sometimes squanders away the capital and puts the industry in financial trouble leading to industrial ruin.
   • Bad management does not handle the labour force efficiently and tactfully, resulting in labour unrest. It is detrimental to the interest of the industry. Strikes and lock-outs lead to the closure of industries. Hence, there is an imperative need of effective management and organization to run the industries.
5. Banking Facilities
   • The location that has better banking facilities and Insurance are best suited for the establishment of industries.
   • The establishment of industries involves the daily exchange of crores of rupees which is possible through banking facilities only. So the areas with better banking facilities are better suited to the establishment of industries.
6. Insurance
   • In the face of changing economic circumstances and local conditions, Insurance facilities are mandatory to avoid any circumstance which would jeopardize the industrial setup.
   • There is a constant fear of damage to machines and men in industries for which insurance facilities are badly needed.

Consequences of partition on Indian industries

• As regards industries, the share of Pakistan was negligible, 91% of all industrial establishments comprising 93% of industrial workers having come to India’s share. Some of the important industries like jute paper and Iron and Steel remained totally unaffected. Even among others like cotton textiles, sugar, cement, match, soap, glass, chemicals, woollen and silk mills, the share, of Pakistan was negligible.
• However, the partition affected industries in many other ways. The interdependent relationship between India and Pakistan was largely that of the former as the industrial manufacturer and the latter as the supplier of raw-materials.
• More than 70% of the raw jute of East Pakistan used to find its way to the jute mills at Calcutta; the larger portion of the long and medium staple cotton grown in Sind and west Punjab was supplied to the textile mills of Bombay, Kanpur and Ahmadabad; the paper mills of Calcutta obtained their Bamboo supplies from the forests of EastPakistan.
• In exchange for these and other raw-materials, areas now in Pakistan received consumer goods such as sugar, cotton textiles, Iron and Steel products, leather goods, paper, Cigarettes, coal which had a ready market there. The partition disrupted the free flow of these goods.
• The industries which specialised in processing agricultural raw-materials now became dependent on imported cotton, jute, oil seeds, wool etc. Their power to complete in foreign markets was reduced and their expansion potentialities limited. The partition also led to a sizeable decline in the demand for Indian manufactured articles as Pakistan drifted to other sources of supply.
• Migration of Muslim artisans and skilled workers dealt a severe blow to cottage the small scale industries like glass, metal works, woollen and hosiery concerns of Punjab, Delhi, Rajasthan, and U.P. Persons, displaced from Pakistan, could not make up the deficiency and it took considerable time before new workers were trained in such vocations.
• Yet another effect was with regard to the location-pattern of Industries. In view of the strained relations of the two countries, it became unsafe to locate industries in the border provinces or even in Calcutta. Factories, therefore, began to be shifted to the safety of the interior of the country.
• The impact is summarised in the table below:

Classification of Industries

Industries are part of the secondary activity. Secondary activities or manufacturing converts raw materials into products of more value to people. The industry refers to economic activities concerned with the production of goods, extraction of services, and provision of services.
Industry classification or industry taxonomy is a type of economic taxonomy that classifies companies, organizations, and traders into industrial groupings based on similar production processes, similar products, or similar behavior in financial markets.
Industries can be classified into several groups. The following table gives an understanding of them.

On the Basis of Strength of Labour

• Large Scale: Industries which employ a large number of labourers in each unit are called large-scale industries. Cotton or jute textile industries are large scale industries.
• Medium Scale: The industries which employ neither very large nor very small number of labourers are put in the category of medium scale industries. Cycle industry, radio and television industries are some examples of medium scale industries.
• Small Scale: The Industries which are owned and run by individuals and which employ a small number of labourers are called small scale industries.

On the Basis of Source of Raw Material

• Agro based: Agro based industries are those industries which obtain raw-material from agriculture. Cotton textile, jute textile, sugar and vegetable oil are representative industries of agro-based group of industries
• Mineral based: The industries that receive raw materials primarily from minerals such as iron and steel, aluminium and cement industries fall in this category.
• Pastoral based: These industries depend upon animals for their raw material. Hides, skins, bones, horns, shoes, dairy, etc. are some of the pastoral-based industries.
• Forest based: Paper card-board, lac, rayon, resin, tanning of leather, leave- utensils, basket industries are included in this type of industries.

On the basis of Ownership

• Private Sector: Industries owned by individuals or firms such as Bajaj Auto or TISCO situated at Jamshedpur are called private sector industries.
• Public Sector: Industries owned by the state and its agencies like Bharat Heavy Electricals Ltd., or Bhilai Steel Plant, or Durgapur Steel Plant are public sector industries.
• Joint Sector: Industries owned jointly by the private firms and the state or its agencies such as Gujarat Alkalies Ltd., or Oil India Ltd. fall in the group of joint sector industries.
• Cooperative Sector: Industries owned and run co-operatively by a group of people who are generally producers of raw materials of the given industry such as a sugar mill owned and run by farmers are called co-operative sector industries.
• Multi-National: A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. These companies, also known as international, stateless, or transnational corporate organizations tend to have budgets that exceed those of many small countries. E.g. TCS, Infosys, etc.

On the Basis of Raw-Material and Finished Goods

• Heavy: Industries that use heavy and bulky raw materials and produce products of the same category are called heavy industries. The iron and steel industry presents a good example of heavy industries.
• Light: The light industries use light raw materials and produce light finished products. Electric fans, sewing machines are light industries.

Miscellaneous Industries

• Village industries: Village industries are located in villages and primarily cater to the needs of the rural people. They usually employ local machinery such as oil extraction, grain grinding, and agricultural implements.
• Cottage industries: Industries which artisans set up in their own houses, work with wood, cane, brass, stone, etc. are called cottage industries. Handloom, khadi, and leatherwork at the artisan’s house fall in this category.
• Consumer-based industries: Consumer industries convert raw materials or primary products into commodities directly used by the people. Textiles, bakeries, sugar, etc. are some of the consumer goods industries.
• Ancillary Industries: The industries which manufacture parts and components to be used by big industries for manufacturing heavy articles like trucks, buses, railway engines, tractors, etc. are called ancillary industries.
• Basic Industries: Industries on which depend many other industries for their manufacturing processes are called basic industries. The iron and steel industry and power-generating industries are included in this category.
• Capital Intensive Industries: Industries requiring huge investments are called capital-intensive industries. Iron and steel, cement, and aluminum are outstanding examples of capital-intensive industries.
• Labour Intensive: Industries that require a huge labour force for running them are called labor-intensive industries. In these industries, labour is more important than capital. Shoe-making and bidi-manufacturing, etc. are included in these industries.

Categorisation of Industries on the basis of Pollution Index

• The Ministry of Environment, Forest and Climate Change (MoEFCC) has developed the criteria of categorization of industrial sectors based on the Pollution Index which is a function of the emissions (air pollutants), effluents (water pollutants), hazardous wastes generated, and consumption of resources.
• For this purpose, the references are taken from the Water (Prevention and Control of Pollution ) Cess (Amendment) Act, 2003, Standards so far prescribed for various pollutants under Environment (Protection) Act, 1986 and Doon Valley Notification, 1989 issued by MoEFCC. The Pollution Index (PI) of any industrial sector is a number from 0 to 100 and the increasing value of PI denotes the increasing degree of pollution load from the industrial sector. The following are the criteria on the ‘Range of Pollution Index for the purpose of categorization of industrial sectors.
  • Industrial Sectors having Pollution Index score of 60 and above – Red category
  • Industrial Sectors having Pollution Index score of 41 to 59 – Orange category
  • Industrial Sectors having Pollution Index score of 21 to 40 – Green category
  • Industrial Sectors having Pollution Index score incl.& upto 20 – White category
• There shall be no necessity of obtaining the Consent to Operate for White category of industries. An intimation to concerned State Pollution Control Board (SPCB) / Pollution Control Committee (PCC) shall suffice.
• No Red category of industries shall normally be permitted in the ecologically fragile area /protected area.

Footloose Industry

• Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors of production such as resources, land, labour, and capital.
• These industries often have spatially fixed costs, which means that the costs of the products do not change despite where the product is assembled. Diamonds, computer chips, and mobile manufacturing are some examples of footloose industries. These are generally non-polluting industries.
• Non-footloose industries generally require raw material availability within a time limit to make products. The sugar industry, jute industry, and tea industry are examples of non-footloose industries.
• Footloose industries can also refer to the processing of products that are neither weight-gaining, nor weight-losing, and face significant transportation costs. An example of the footloose processing industry is honey. The weight of the raw honey and wax is the same as the finishing product. So, whether the honey is processed near the source of the raw materials or at the location of the final product demand, the transportation costs are the same.

The key characteristics of a footloose industry are:

• These industries require small plant size compared to heavy and small industries.
• These are less dependent on specific raw material, especially weight losing ones. Most of the raw materials are small and light and can be transported easily.
• It needs skilled workers as the industrial process is advanced and major work needs high-quality precision.
• Like the inputs, the output is lightweight and can be easily transported to the markets. Most of the footloose industries produce low volume and high-value outputs.
• These are environment-friendly industries as the process involved in these industries have a negligible carbon footprint.
• It prefers location which is peaceful and cost friendly as to attract the human capital.
• Also, location with a good connectivity of roads, railways, telecommunication, airways etc. are preferred to facilitate quick movement of skilled workers and high-value outputs.

Cotton Textile Industry

• India held a world monopoly in cotton textiles, since almost 1500 BC. In the middle ages, Indian cloth was in great demand in European market. Muslins of Dhaka, Chintzes of Masulipatnam and Calicos of Calicut are world famous. But the advent of modern mills during Industrial Revolution and British India’s discriminatory policy led to its collapse.
• The present cotton textile industry is an indigenous industry, since it was started and developed predominantly on Indian capital and entrepreneurship.
• India is first in global jute production and shares 63% of the global textile and garment market. India is second in global textile manufacturing and also second in silk and cotton production.
• 100% FDI is allowed via automatic route in the textile sector.

Phases of growth of Cotton Textile Industry

Incipient Phase(Up to 1900)

Bombay was the main focal point of all development in cotton textile industry. Following were the developments around Bombay:

• Parsee merchants had huge finances from cotton and opium trade with China and raw cotton export USA during Civil War.
• Technical expertise was made availability by European firms
• Large cotton growing areas made raw materials easily available for new mills; they were already being exported through Mumbai.
• Port facility allowed for the import of machinery, chemical etc.
• Development of railways, in and around the Mumbai region facilitated the growth of Cotton Textile Industry.
• Availability of cheap unskilled labour.
• Climate advantage was there, humidity helped spinning without breakage.

Primary Core (1900-1920)

1. During World War I demand increased, supplies from other countries reduced, leading to the growth of the industry. Also, the Swadeshi movement contributed to the development of the Cotton Textile Industry. At the same time, the industry dispersed and other centers emerged. Ahmadabad was another major center. Other centers were Surat, Kalyan, Thane, Vadodara, Bharuch, and Pune. Factors that supported dispersion included.
   • Raw material availability at other places as well
   • Land cost increased in Bombay
   • Trade Unions were emerging in Bombay.
2. The dispersion of Cotton Textile Industry was two-directional
   • North Direction – Delhi (Malwa plateau region provided cheap raw materials). Also, princely states took interest in the development of the Cotton Textile Industry. They provided free land and capital. Labour was also very cheap. Further, nearness to the market of North India facilitated the development of the Cotton Textile Industry in the north.
   • Eastern diffusion was mainly on the Telangana and Deccan lava Plateau area. Cotton Textile Industry expanded up to Nagpur in the east and Hyderabad in the South East.
3. Industry also reached some places with additional advantages such as:
   • Nagpur – due to nearness from coal mines
   • Kanpur – due to excellent financial facilities
   • Kolkata – due to proximity from port and market

Post-independence

• Post-independence, several efforts were taken up to undermine the problems faced by the cotton industry and to increase production. Grow more cotton campaign was launched to tackle the problem created by the loss of cotton-producing areas. Intensive cotton-growing programs in 1971-72 were launched to increase production and productivity to meet demands.
• Central Institute of Cotton Research was set up in 1988, Technology Mission on cotton development started to tackle all aspects of cotton cultivation and utilization. The private sector was encouraged to set up units and enhance the overall production.
• As a result of Govt efforts and private sector involvement, after Independence the Cotton Textile Industry made recognizable dispersion. The following dispersion trends could be observed:
  • Development of irrigation in the old alluvial regions of the country, mainly in the regions of Green Revolution,
  • The industry made rapid progress in Punjab, Haryana, West UP, and Delhi. Jalandhar, Ludhiana, Pathankot, Amritsar in Punjab, Ambala, and Faridabad in Haryana. Agra, Saharanpur, Ghaziabad, Modinagar in UP (Cotton needs soil moisture, not the surface water so thus soils which retain water for a longer time are favorable for cotton. New alluvium does not favor cotton farming).
  • Market Impact: India’s tropical climate makes the whole country as a market. The Hoogly region in West Bengal emerged as a major region for Cotton Textile Industry.
  • Some diffusion also took place in Eastern and Central UP at Lucknow, Varanasi, etc. The industry reached to almost all states after independence.
  • Southward diffusion: Coimbatore, Madurai, Tirunelveli were major centers of diffusion. Its diffusion to the South, particularly Tami Nadu and Kerala is basically related to the following factors:
    (i) Development of Hydroelectricity e.g. Pykara project.
    (ii) Readiness of industrialists to take advantage of amicable conditions for Cotton Industry.
    (iii) Raw cotton farming in the Madurai-Coimbatore region
    (iv) Market availability.
• Industry also shifted from regions of higher labour cost to those of low labour costs e.g. Madurai, Ujjain, and Agra, etc.

Present Status of Cotton Textile Industry in India

• India is the 2nd largest producer of cotton textiles in the world. It is also one of the largest industries in terms of employment, production, and exports.
• In India at present, cotton cloth is produced in 3 sectors:
  (i) Mills: Mills share has come down from 80% in 1950 to 3.3% in 2005-06
  (ii) Power looms: Power looms accounts for 85% of total production in Cotton Textile Industry. They are concentrated in Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh, Madhya Pradesh, West Bengal and Karnataka.
  (iii) Handlooms: They account for 12.5% of the total production in Cotton Textile Industry. They employ nearly 6 million people. There are nearly 38 lakh handlooms in India in which about one-third are located in Tamil Nadu, Andhra Pradesh, Assam, Uttar Pradesh and rest in Maharashtra, West Bengal, Bihar, Orissa, Rajasthan and Karnataka
• Cotton Textile Industry is no longer an off-season occupation. It is an ancient industry, which has declined due to political and economic factors.

Factors influencing location and distribution

1. Raw material
   • Although raw cotton, the principal raw material is an easily transportable commodity, and many areas with cotton mills do not grow cotton. Its availability along with others factors has played a decisive role in the localization of cotton mills in the country. In fact, the whole country forming a large market, Cotton Textile Industry is concentrated in the region of raw cotton production and in the areas which provides it a certain advantage over the rest.
   • Distribution of over 90% of the industry is conterminous with the cotton-growing tracts in the relatively drier western parts of the peninsula and the Great Plains.
   • Large centers like Ahmadabad, Coimbatore, Solapur, Nagpur and Indore are situated in areas of large-scale cotton cultivation. Even Bombay enjoys this locational advantage to a lesser degree as compared to the cotton-producing areas of Maharashtra and Gujarat.
2. Market
   • Market is the second most important factor responsible for the development of these industries. Situated in the tropics and sub-tropics the country enjoys a warm climate and cotton cloth is in use for the whole year in the peninsula and for most of the year in the Great Plains.
3. Cheap labour
   • Since cotton wearing was a traditional cottage industry, chiefly concentrated in the cotton tracts of the country, cheap skilled labour was easily available in such areas.
   • Hence it was also an important factor for the setting of cotton textile industries in cotton growing areas.
   • Cheap and efficient means of transport abundant power and fresh water and above all enterprise played some role in the development of the industry in the various part of the country.
   • The geographical inertia and government policy of decentralization has also influenced the location of the cotton industry.

Distribution
The cotton textile industry is one of the most widely distributed industries in the country. Maharashtra and Gujarat together account for a major chunk of cloth produced in India.

1. Maharashtra
   • It is the leading producer of cotton yarn and cloth. It is the third most important state from the point of view of the number of mills. Here Mumbai is known as cottono-polis of India followed by Solapur, Nagpur, Pune, Jalgaon, Kohalpur, etc.
2. Gujarat
   • It ranks second in cotton yarn and cloth production and in terms of a number of mills. Important centres are Ahmadabad, Surat, Broach, Baroda, Bhavnagar, Cambay, Rajkot, Kalal, etc.
3. Tamil Nadu
   • It has the largest number of mills. Important centres are Coimbatore, Madras, Madurai, Tirunelveli, Tuticorin, etc.
4. Uttar Pradesh
   • The industry is concentrated in the western parts of the state where most of the cotton is grown. Important centres are Kanpur, Modinagar, Moradabad, Aligarh, Agra, Etawah, Meerut, Ghaziabad etc.
5. West Bengal
   • Most of the mills are located around Calcutta and Howrah and in the 24-Paragana district. A large market, chief coal-producing areas, and port facilities of Calcutta are the chief location assets. Important centres are Calcutta, Howrah, Sodepur, Serampore, and Shyamnagar.
6. Madhya Pradesh
   • All the mills are concentrated in the cotton tract of the Western Malwa Plateau. Important centres are Gwalior, Indore, Ujjain, Raipur, Dewas, Bhopal, Jabalpur etc.
7. Karnataka
   • Important centre of production are Bangalore, Bellary, Mysore, Devangiri etc.
8. Andhra Pradesh
   • The industry has grown up in the cotton-growing areas of Telangana. Important centres are Hyderabad, Warangal, Guntur, Ramagundam, Tirupati, etc.
9. Kerala
   • In Kerala Alwaye, Cochin, Alleppey, Allapanagar, Trivendrum have emerged as the main centre for the production of cotton textiles
10. Rajasthan
    • In Rajasthan Kota, Jaipur, Jodhpur, Ganganagar, Bhilwara, etc. are the main centre for the production of cotton textiles
11. Haryana
    • Hissar and Bhiwani are the main centres of the cotton textiles industry in Haryana.
12. Punjab
    • Punjab has come up as a leading cotton-producing state in the country. New varieties of cotton e.g. BT cotton are being introduced with R&D done simultaneously on better varieties.
    • Amritsar and Ludhiana main centres of the cotton textiles industry in Punjab.
13. Delhi
    • Delhi as also emerged as an important center for the production of cotton textiles due to the presence of a huge market.

Problems of the Industry

1. Problems of raw materials
   • Production of cotton textiles depends to a large extent on the production of raw cotton. The cotton textiles industry in those areas where the production of raw cotton is small faces a serious problem.
   • Another related problem is the increasing prices of raw cotton. This has created a the different situation for the cotton textile industry, since it has pushed up the cost of production substantially.
   • Also there is the shortage of cotton which is now imported from Pakistan, Kenya, Uganda, Egypt, and USA (long stapled cotton).
   • However, efforts have been made to establish the industry in traditionally non – cotton belts.
   • Punjab has come up as a leading cotton producing state in the country. New varieties of cotton e.g. BT cotton are being introduced with R&D done simultaneously on better varieties. Improvement in relations with Pakistan can also help in easy import of cotton from there.
2. Problems of power
   • The textiles industry in country has suffered badly for want of adequate and regular supply of power. Frequent power cuts and load shedding have affected the industry badly. This is a general problem for industry in the country.
   • However, efforts like Mega Power Plants, new hydroelectric plants and participation of private sector is coming up in a big way to improve the power situation in the country. Besides, more energy efficient technologies need to be evolved to sort out this problem.
3. Obsolete machinery and need for modernization
   • Since the cotton textile industry is old in India and a number of mills were set up long back, the machinery and equipment have grown old and outdated and need fast replacement. Production with the help of such outdated machinery results in higher costs, and poor quality of product.
   • However, attempts for the modernization and replacement of old machinery by new machinery are hindered on one hand by the capital financial constraints (being faced by many units) and on other hand by protests from labour. Modernization involves automation which is likely to displace labour. The government has initiated many technology enhancement programmes.
   • Subsidies to the extent of 75-100% are being given for the modernization of this industry.
   • On the technology front, the Technology Up-gradation Fund Scheme has been instituted by the government in an effort to encourage manufacturers to go in for enhanced technology.
   • Countries like China have shown the way vis-a-vis the modern technologies and low cost of production.
4. Labour problems
   • The cotton textile industry has been faced with frequent labour problems. In 1982 the industry was shocked by a labour strike in Bombay which continued for eight months.
   • In India, many reforms vis-a-vis labour have been initiated by the government as second Generation Reforms. These included many reforms like VRS, training and rehabilitation measures.
5. High cost of production and competition in foreign markets
   • The Indian cotton textile industry has been facing increasing competition in world markets.
   • This is largely due to low productivity and high cost of production and consequently high prices of Indian cotton cloth textiles. It is paradoxical in a country where wages are low and cotton is internally available. Production costs should be high but the advantage of lower wages is offset by the comparatively greater disadvantage in raw materials and outdated machinery. While Indian major competitors like China, Taiwan and South Korea are using the latest machinery, Indian textile industry is saddled with absolute machinery.
6. Sickness and Recession in mill sector
   • Because of the above mentioned problems and the competition from the decentralized sector, a number of cotton mills are facing recession and are turning sick.
   • Low profits and profitability in the mill sector forces some of these mills to close down. Closure of mills is resented by workers as they are rendered unemployed.
7. Competition from decentralized sector
   • An important factor for the growing sickness of the mill sector is the growth of the decentralized sector. Being a small scale sector, the government allowed excise concessions and other privileges to other small sectors which sometimes become detrimental to textile sector due to lack of government support.
8. Lack of foreign investment: Due to challenges given above the foreign investors are not very enthusiastic about investing in the textile sector which is also one of the areas of concern.
   

New Patterns in Cotton Textile Industry
New patterns of growth have been witnessed in Cotton Textile Industry from the past decade which has been given below:

• Mills are encouraged to specialize in spinning while small units and handloom cooperatives specialize weaving.
• Decentralized sector becoming more important in production of fabrics.
• Preciously, mills and handlooms were competing with each other, but now becoming interdependent.

Key advantages of the Indian Cotton Textile Industry

• India holds a prominent position in the global cotton textile industry, being the second-largest producer of cotton and having the largest area dedicated to cotton cultivation worldwide. This allows the country to source cotton at a lower cost compared to other nations.
• One of the key advantages of the Indian cotton textile industry is the relatively low average wage rate, which is about 50-60% lower than that in developed countries. This enables India to capitalize on global outsourcing trends in labor-intensive sectors such as garments and home textiles.
• Another crucial strength of the Indian cotton textile industry is its design and fashion capabilities. These skills have allowed Indian manufacturers to establish strong relationships with global retailers and outperform their Chinese competitors.
• Furthermore, India boasts comprehensive production facilities across the entire textile value chain, ranging from spinning to garment manufacturing. The industry is continuously investing in technology and expanding its capacities, which should serve as a significant asset in the coming years.
• Large Indian companies, such as Arvind Mills, Welspun India, Alok Industries, and Raymonds, have successfully positioned themselves as major producers in the global market, further solidifying India's prominence in the cotton textile industry.

Recent Schemes related to the Textile sector in India

Conclusion

Frequently Asked Questions (FAQs) of Locational factors of Cotton, Jute, Textile, Iron & Steel, Aluminum

What are the main geographical factors influencing the location of industries?

The main geographical factors influencing the location of industries include raw materials, power, labor, transport, market, water, site, and climate. These factors determine the availability of resources, accessibility to markets, and the overall suitability of a location for a specific industry.

What are non-geographical factors that influence the location of industries?

Non-geographical factors that influence the location of industries include capital, government policies, industrial inertia, efficient organization, banking facilities, and insurance. These factors affect the financial and regulatory aspects of setting up and running industries in a particular location.

What is the difference between footloose and non-footloose industries?

Footloose industries are industries that can be placed and located at any location without being affected by factors of production such as resources, land, labor, and capital. These industries often have spatially fixed costs, meaning the costs of products do not change regardless of where the product is assembled. Examples include diamonds, computer chips, and mobile manufacturing. Non-footloose industries, on the other hand, generally require raw material availability within a time limit to make products and are more dependent on specific locations.

What are the different categories of industries based on the pollution index?

The pollution index categorizes industries into four categories based on their pollution load: Red category (industries with a pollution index score of 60 and above), Orange category (industries with a pollution index score of 41 to 59), Green category (industries with a pollution index score of 21 to 40), and White category (industries with a pollution index score incl. & up to 20).

How did the partition of India affect the country's industries?

The partition of India affected industries in several ways, including the disruption of the free flow of goods between India and Pakistan, increased dependence on imported raw materials, a decline in demand for Indian manufactured products in Pakistan, migration of Muslim artisans and skilled workers, and changes in the location pattern of industries due to security concerns.