The proper management of working capital is of crucial importance of the success of business. The working capital management with its goal to minimize the cost of working capital while maximizing a firm’s profit has been found to emerge as a major factor in the profitability of a business. Efficient working capital management is, by common consent, of vital importance for an uninterrupted flow of internal finance for capital formation, which is essential for building an institutional base. In the light of this argument, the endeavor to study the reasons responsible for the constant rise in the prices of cotton textile industry in India with special reference to Rajasthan of great importance. The Importance of the role which cotton textile industry in India with special reference to Rajasthan plays in the development of national economy and in its infrastructure makes the study significant. In this paper Working Capital Management in Cotton Textile Industry In India is being discussed.