Question

Q69. Consider the following statements about Cotton textile industry:

1. Cotton textile mill sector is highly capital intensive.

2. Powerloom sector is more labour intensive than Handloom sector.

Which of the above statement(s) is/are correct?

• A. (a) Only 1
• B. (b) Only 2
• C. (c) Both 1 and 2
• D. (d) None of the above

Answer 1

The correct option is A

(a) Only 1

Cotton textile industry has three sub-sectors i.e. handloom, powerloom and mill sectors.

Handloom sector is labour-intensive and provides employment to semi-skilled workers. It requires small capital investment. The powerloom sector introduces machines and becomes less labour intensive.

Therefore, statement 2 is not correct.

Cotton textile mill sector is highly capital intensive and produces fine clothes in bulk. Therefore, statement 1 is correct.