This industry developed in those regions which had cotton growing areas, cheap transport, cheap labour and humid climate. 

Thus, this industry developed in following states:

1. Maharashtra: There are 112 mills in this state; and Bombay has maximum mills at 54. Additionally, cotton textile mills are also present at Solapur, Akola, Amravati, Wardha, Satara, Kolhapur, Sangli, Jalgaon and Nagpur. This region has plenty of black soil in the hinterland, humid climate and proximity to the Bombay port. Hence, cotton textile industry has thrived in this region. This state produces 39% of cotton textiles of the country.

2. Gujarat: This is the second largest producer of cotton textiles. There are 135 mills in Gujarat; out of which 67 are at Ahmadabad. Additionally, mills are also present at Surat, Vadodra, Bhavnagar, Porbander, Rajkot and Bharuch. This region has grown because of cotton farming in hinterland, cheap labour, availability of capital and proximity to the Kandla port. This state produces 35% of cotton textiles in India.

3. Tamil Nadu: This is the largest cotton producer in south India. There are 205 mills in Tamil Nadu; out of which maximum mills are in Coimbatore. Additionally, cotton mills are also present at Madurai, Chennai, Perambur, Tiruchirapalli and Ramanathpuram. This region has developed well because of humid climate and Chennai port. This state produces 6% of cotton textiles in India.

4. Madhya Pradesh: There are 36 mills in this state and most of the mills are in Indore, Gwalior, Ujjain, Devas, Jabalpur and Ratlam. As this state has well developed transport network and dense population so cotton industiy has flourished here. Madhya Pradesh produces 5% of cotton textiles in the country.

5. West Bengal: There are 45 mills in West Bengal; and most of the mills are situated around Hooghly in Kolkata, Hooghly, Howrah and 24 Pargana. This industiy has developed in West Bengal due to local demand, proximity to Kolkata port, well developed transport network, and cheap labour due to dense population.

6. Rajasthan: The cotton textile industry is in nascent stage in Rajasthan. Cheap electricity from Chambal and Bhakra Nangal projects, cotton farming in plateau of Harauti and irrigated plains of Ghaghar have helped in flourishing mills in Bhilwara, Udaipur, Kota, Ganganagar and Pali.

7. Other States: Uttar Pradesh depends on cotton supply from other states. Cotton mills are present at Kanpur, Muradabad, Hathras and Varanasi in UP. Cotton mills are also present in Punjab (Amritsar, Ludhiana and Phagwara), Karnataka (Bellari, Mysore and Bangalore), Andhra Pradesh (Hyderabad, Warangal and Guntur), Kerala and Bihar.