Why is it important for our country to keep the mill sector loomage lower than power loom and handloom?

India exports yarn to Japan. Other importers of cotton goods from India are U.S.A., U.K., Russia, France, East European countries, Nepal, Singapore, Sri Lanka, and African countries. We have a large share in the world trade of cotton yarn. Our spinning mills are competitive at the global level and capable of using all the fibres we produce. The weaving, knitting and processing units cannot use much of the high quality yarn that is produced in the country. There are some large and modern factories in these segments, but most of the production is in fragmented small units, which cater to the local market.