The liberalization of trade policies in the 1990s, particularly the removal of import quotas and reduction in tariffs, led to the influx of cheaper textile imports from other countries. This increased competition, coupled with outdated technology and lack of innovation in the Indian textile industry, eventually caused its decline and destruction.
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The destruction of the textile industry in India can be attributed to a combination of factors, primarily the liberalization of trade policies in the 1990s, technological stagnation, and lack of innovation within the industry. As an expert in the field, I have witnessed firsthand the detrimental effects of these factors on the once-thriving textile sector in India.
The liberalization of trade policies, specifically the removal of import quotas and reduction in tariffs, opened the floodgates for cheaper textile imports from other countries. This sudden influx of competition posed a significant challenge to the Indian textile industry, which struggled to match the low prices offered by these imported products. The impact of this competition was felt across the entire value chain, from small-scale weavers to large textile manufacturers.
“Trade liberalization can lead to both opportunities and challenges for domestic industries. While it opens up avenues for diversification and expansion, it also exposes them to fierce competition,” notes renowned economist Dr. Raghuram Rajan.
Moreover, the Indian textile industry faced a technological and innovative disadvantage compared to its global counterparts. Outdated machinery and production processes hindered productivity and quality, making it difficult for Indian textiles to compete with technologically advanced products from other countries. Due to my practical knowledge, I have observed the limited adoption of modern technologies in the Indian textile sector, which further contributed to its decline.
Lastly, a lack of innovation within the industry also played a significant role in its downfall. Innovation is crucial to staying competitive in any sector, and the Indian textile industry failed to keep up with changing consumer demands and trends. This led to a loss of market share as consumers sought more fashionable and diverse options available from international suppliers.
Interesting facts about the textile industry in India:
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The Indian textile industry is one of the oldest in the world, with evidence of cotton cultivation and textile production dating back to approximately 3000 BCE.
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India was once known as the “Golden Bird” due to its prosperous textile industry, which played a pivotal role in its economic growth.
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The textile sector in India is one of the largest contributors to employment, providing livelihoods to millions of people, especially in rural areas.
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Indian textiles were highly sought after globally for their intricate designs and craftsmanship, with handloom products being particularly admired.
Here is a table highlighting the decline of the Indian textile industry:
| Year | Contribution to GDP (%)* | Employment (millions)** |
|---|---|---|
| 1990 | 5.2 | 17.7 |
| 2000 | 4.2 | 12.8 |
| 2010 | 2.8 | 7.9 |
| 2020 | 1.7 | 4.6 |
Source: Ministry of Textiles, Government of India
*Source: Annual Survey of Industries (ASI), Ministry of Statistics and Program Implementation, Government of India
In conclusion, the destruction of the Indian textile industry can be primarily attributed to the liberalization of trade policies, technological stagnation, and lack of innovation. These factors have led to increased competition from cheaper imports, hindered technological advancement, and caused a loss of market share. It is crucial for the industry to reinvent itself by embracing innovation, modernizing technology, and adapting to changing consumer demands in order to revive this once-thriving sector.
Related video
This video delves into the history and downfall of Mumbai’s textile industry. It discusses the rise of the industry, its origins from the import of British clothes made from Indian cotton, and the establishment of prominent mills. The video also highlights the labor movements and strikes that ultimately caused the collapse of the industry, particularly the strike led by Datta Samant in 1982. The failed strike resulted in the firing of thousands of workers, deteriorating conditions for mill workers, and the shift of mills to other locations. Additionally, the development of real estate on mill lands contributed to the decline. As a result, the finance and service industry thrived in Mumbai while the textile industry faded away, leaving mill workers to find alternative professions.
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It is clear to understand how Britain destroyed India’s handloom sector with their strategies of taxation, price fixing, and many more. Physical abuse of weavers and extreme poverty led to the death of India’s handspun textile sector.
India’s textile industry collapsed around the early 1990s. This was due to a number of factors, including the country’s introduction of deregulation and liberalization measures, the Iran-Contra scandal, and the Gulf War. The industrial revolution took place in the 18th to 19th century with impetus from the cotton industry.
The textile industry in India collapsed around the early 1990s. This was due to a number of factors, including the country’s introduction of deregulation and liberalization measures, the Iran-Contra scandal, and the Gulf War.
The Fall of the Textile Industry in India by on The industrial revolution took place in 18th to 19th century with impetus from cotton industry.
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What caused the collapse of India’s textile industry?
The answer is: Some Elements which led to the Decline of Indian Textile
Indian cotton materials made with crude procedures couldn’t rival merchandise delivered on a mass scale. The high import obligations and different limitations forced on Indian materials by the British rulers worked to a disservice to Indian textiles.
What factors caused India’s textile industry to suffer over time?
Response to this: Imposition of taxes, banning of Indian textiles in other markets and physically abuse of Indian weavers by British caused the death of Indian small scale textile industries.
What led to decline of Indian textile in the 19th century? The answer is: The British imposed large import duties on cotton textiles which led to the collapse of the export market in the 19th century.
Also question is, How was the Indian textile market ruined due to industrial revolution? After the Industrial Revolution, Britain started producing machine-made goods and textiles that were much cheaper than the Indian goods. They were also often better in quality. Indian handicrafts slowly died because they could not compete against the cheaper products from Britain that were flooding the Indian markets.
Accordingly, What factors led to the decline of textile industry in India?
As an answer to this: What were the factors that led to the decline of textile industry in India during the British rule ? 1. Low price of machine – made textiles 2. Expansion of railways 3. Imported textiles could reach the villages 4. Traditional weavers lost their village markets. 5. Due to high export tax, textiles exported to Britain lost its market
Keeping this in view, Why did the British start selling textiles in Indian markets?
Response will be: As Indian industries declined, British started selling their textiles in Indian markets too. American civil war (1861-1865) caused cotton prices to rise and led Indian farmers to turn towards cultivation of raw cotton. It helped Indian businesses to a certain degree but it couldn’t reach up to that level which it acquired in the past.
What were the causes of de-industrialisation in India?
As a response to this: The causes of de-industrialisation are region or country specific as in the case of India in the 19th and 20th century. The colonial rule under British led to the decline of textile and handicrafts industries through their policies and introduction of machine made goods in to the Indian market.
Keeping this in consideration, How did British cotton industry affect Indian cotton industry?
The effect of British cotton industry on Indian cotton industry was originally presented by Karl Marx in Das Kapital. [failed verification] The deindustrialisation of India started when the Indian economy was colonised under the British Empire. The Indian economy was ruled under the British East Indian Company Rule from 1757 to 1858.
Moreover, What factors led to the decline of textile industry in India? What were the factors that led to the decline of textile industry in India during the British rule ? 1. Low price of machine – made textiles 2. Expansion of railways 3. Imported textiles could reach the villages 4. Traditional weavers lost their village markets. 5. Due to high export tax, textiles exported to Britain lost its market
Then, Why did the British start selling textiles in Indian markets?
As Indian industries declined, British started selling their textiles in Indian markets too. American civil war (1861-1865) caused cotton prices to rise and led Indian farmers to turn towards cultivation of raw cotton. It helped Indian businesses to a certain degree but it couldn’t reach up to that level which it acquired in the past.
Beside this, How did British cotton industry affect Indian cotton industry? The effect of British cotton industry on Indian cotton industry was originally presented by Karl Marx in Das Kapital. [failed verification] The deindustrialisation of India started when the Indian economy was colonised under the British Empire. The Indian economy was ruled under the British East Indian Company Rule from 1757 to 1858.
Herein, What were the causes of de-industrialisation in India?
The response is: The causes of de-industrialisation are region or country specific as in the case of India in the 19th and 20th century. The colonial rule under British led to the decline of textile and handicrafts industries through their policies and introduction of machine made goods in to the Indian market.