Abstract: Spinning is the process of converting cotton or manmade fibre into yarn. India enjoys a strong production base of wide range of fibres from natural fibres like cotton, jute, silk and wool to synthetic, man-made fibres like polyster, viscose, nylon and acrylic. No other country except China has such a diverse base in textile fibres. Small scale, non-integrated spinning, weaving, finishing and apparel making enterprises comprise the major part of the Indian textile industry. Tamilnadu is one of the few States that adopts the strategy of industrial growth with emphasis on small scale industries. The small scale industries form the backbone of textile industry, so any measure taken by the Government to strengthen the textile industry should focus on the capacity building of these small scale industries.