With reference to the woollen Industry of India, consider the following statements:
1. While Rajasthan is the largest wool producing state of India, maximum woollen units are in Punjab
2. Most of the wool produced in India is exported in the form of value added woollen products
Which among the above statements is / are correct?

Answer: [A] Only 1

The main wool producing states of India are Rajasthan, Punjab, Jammu & Kashmir, Karnataka, Gujarat, Uttar Pradesh, Uttaranchal, Andhra Pradesh, Maharashtra and Haryana. Punjab alone accounts for 40% of the woollen units, while Haryana accounts for 27%, Rajasthan 10% and the rest of the states account for the remaining 32%. Of the total domestic production of wool, around 85% is carpet grade, 10% is coarse grade and the balance 5% is apparel grade. Bulk of the wool produced in India is of coarse quality and used mainly in the manufacture of hand-knitted carpets. The rest are being used for the manufacture of apparel, blankets, finished textiles, garments, knitwear, etc. 5.2.9. Demand for wool outstrips domestic production, since India produces a lot of value added products that are exported. India imports substantial amount of raw wool for this purpose. Consumption, which includes domestic production and imports, recorded a CAGR of 3% during the period between 1991- 92 and 2008-09. Decline of 17.3% in consumption during 2008-09, reflects the steep decline in imports during the year, while domestic production grew by 7.5%.

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