The cotton textile industries contribute about 7% of industrial output, 2% of India’s GDP and 15% of the country’s export earnings. It is one of the largest sources of employment generation in the country. At present there are 1,719 textile mills in the country. Out of which 188 mills are in public sector, 147 in cooperative sector and 1,284 in private sector. Currently, India is the third largest producer of cotton and has the largest loom arc and ring spindles in the world. At present, cotton textile industry is the largest organized modem industry of India. About 16% of the industrial capital, 14% of industrial production and over 20% of the industrial labour of the country are engaged in this industry.

The higher concentration of textile mills in and around Mumbai, makes it as “Manchester of India”. Presence of black cotton soil in Maharashtra, humid climate, presence of Mumbai port, availability of hydro power, good market and well developed transport facility favour the cotton textile industries in Mumbai. The major cotton textile industries are concentrated in the states of Maharashtra, Gujarat, West Bengal, Uttar Pradesh and Tamil nadu. Coimbatore is the most important centre in Tamil nadu with 200 mills out of its 435 and called as “Manchester ‘ of South India”. Erode, Tirupur, Karur, Chennai, Thirunelveli, Madurai, Thoothukudi, Salem and Virudhunagar are the other major cotton textiles centres in the state.