ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Textiles A Study in Intervention

Textiles: A Study in Intervention Tirthankar Roy India's Textile Sector; A Policy Analysis by Sanjiv Misra; Sage Publications, New ROUGHLY between 1956 and 1985, the textile industry in India was governed by a closely regulatory regime. The state intervened on mainly two fronts: competition among mills, powerlooms and handlooms; and consumer preference between cotton and non-cotton fibres. Competition was regulated by restriction on the mills and excise duties. Fibre-choice was directed by tariffs and taxes on non-cotton. This framework began to be dismantled from 1985 on realisation that interventions had been partly frustrated and partly damaging. Restriction on the mills was meant to protect handloom weavers, and thus several million jobs, but it resulted in a clandestine expansion of small-scale powerlooms. The demand for non-cotton grew despite high taxes. And in the course of the three decades. India, the premier textile manufacturer in the developing world in 1940, accumulated sickness in the cotton mills, and steadily retreated in the world market.

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