Assertion: Handloom sector is labour-intensive and provides employment to semi-skilled workers. It requires small capital investment.
Reasoning: Mahatma Gandhi propagated Khadi as part of the independence movement.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Handloom sector is labour-intensive and provides employment to semi-skilled workers. It requires small capital investment. Why did Mahatma Gandhi propagate Khadi as part of the independence movement? This sector involves spinning, weaving and finishing of the fabrics. The powerloom sector introduces machines and becomes less labour intensive and the volume of production increases. Cotton textile mill sector is highly capital intensive and produces fine clothes in bulk.