Exports-A Piece of Domestic Cake

August 8, 1981 without allowing a matching expansion in the weaving capacity, this measure amounted to a half-hearted approach. The other important constraints on expansion and modernisation were lack of soft loan facilities and competition from the cotton textile sector. Existing government policy allowes cotton textile industry to produce fabrics containing wool up to 40 per cent. In case of excise duty also, the government is more favourable to the cotton textile industry in some products competing with woollen items. It may be no'ed that compared to the size and production of the cotton textile sector, wool and woollen industry is a small industry.