Answer:
Major
drawbacks:
(i) India has a large share in the world trade of cotton yarn but its
trade in readymade garments is only 4 per cent of the world's total.
(ii) India's spinning mills are competitive at the global
level and capable of using all the fibres produced.
(iii) But the weaving, knitting and processing units
cannot use much of the high quality yarn that is produced in the country.
(iv) There are some large and modern factories in these
segments, but most of the productions are in fragmented small units, which
cater to the local market.
This mismatch is a major drawback for the industry. As a
result, many Indian spinners export cotton yarn while garment manufacturers
have to import fabric.
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