Greater competition from power looms.
Explanation
The decline of the textile industry in traditional centers like Ahmedabad (often referred to as the "Manchester of the East") during the 1980s and 1990s was driven by structural changes in the Indian economy. The central theme was the shift in production dominance from the organized "mill sector" to the decentralized "power loom sector."Option-wise Analysis
- Strict environmental regulations. is Incorrect: While environmental regulations regarding wastewater treatment and pollution became significant in later years, they were not the primary cause of the mass closure of mills during the 1980s. The crisis during this period was fundamentally economic and structural.
- Greater competition from power looms. is Correct: The organized composite mills (which integrated spinning, weaving, and processing) faced intense competition from the decentralized power loom sector. Power looms operated with significantly lower overhead costs, lower wages, and greater flexibility. Additionally, government policies often favored the small-scale sector with excise duty exemptions. The large mills in Ahmedabad, burdened by obsolete machinery and high fixed costs, could not compete with the cheaper cloth produced by power looms.
- Lack of raw cotton. is Incorrect: Ahmedabad is situated in the heart of the cotton-growing region (black soil tract) of Gujarat. The availability of raw cotton was the primary reason for the industry's initial establishment and growth there; it was never a constraint.
- Labour strikes. is Incorrect: While labor strikes were a definitive cause for the decline of the textile industry in Mumbai (e.g., the Great Bombay Textile Strike of 1982 led by Datta Samant), the situation in Ahmedabad was different. In Ahmedabad, the closure was driven more by the financial unviability of the mills due to lack of modernization and market competition rather than prolonged militant trade unionism.
Key Takeaway: The closure of textile mills in Ahmedabad was primarily caused by the structural shift in the textile industry, where the decentralized power loom sector outcompeted the organized mill sector due to cost efficiency and policy support.