(i) Cotton textile industry has three sub sectors i.e. handloom, power loom and mill sectors. Handloom sector is labour-intensive and provides employment to semi-skilled workers. (ii) This sector involves spinning, weaving and finishing of the fabric. The powerloom sector introduces machines and becomes less labour intensive and the volume of production increases. (iii) Cotton textile mill sector is highly capital intensive and produces fine clothes in bulk. It requires good quality cotton as raw material. India, China, USA, Pakistan, Uzbekistan and Egypt produce more than half of world’s raw cotton. (iv) The UK, North West European countries and Japan also produce cotton textile made from imported yam. Europe accounts for nearly half of the world’s cotton imports. This industry has to face very stiff competition with synthetic fibres, whether it has shown declining trend in many countries. (v) By scientific advancement and technological improvements the structure of industries changes. As—Germany recorded constant growth in this industry since World Ward I till 1970 but now it has declined.