Question

Many of our spinners export cotton yarn while apparel / garment manufactures have to import fabric. Give reason

Answer 1

India has a world class production and quality in spinning, but weaving supplies low quality of fabric because they are fragmented in small units. The mismatch is a major drawback. 
Although the production of staple cotton has increased but we still need to import good quality staple cotton. 
The industries also face erratic power supply problems which decreases labour productivity.
Then there is a stiff competition with the synthetic fibre industry and Jute textiles. The machineries are not upgraded.

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Answer 2

Although Cotton is major cultivated crop in India and in spite of having globally competitive spinning and grey-fabric manufacturing capacities, the cotton textile industry has been a failure in India.

The major drawback is that India has a world-class production and quality in spinning, but weaving supplies are of the low quality of fabric because they are fragmented small units.

The yarn produced in the spinning sector is exported to Japan because the weaving sector cannot use this high-quality yarn. Therefore they import the fabric.

Many of our spinners export cotton yarn while apparel and garment manufacturers have to import fabric.

Cotton textile industries face the problem of an erratic power supply which decreases the labor productivity. The output of labor is low due to poor machines and power supply.

The machinery needs to be upgraded, especially in the weaving and processing sectors.