Explanation:

Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport. Hence statement 1 is correct.
Reason for growth of footloose industries lies in the rapid development of highly sophisticated products requiring a great deal of scientific research and development.

• Footloose industries enable quick product improvement of their products to suit the market demand.
• Characteristic features of footloose Industries which favour the free choice of location:
• light industries that often do not use raw materials but component parts
• power requirements, usually only electricity — available from the national grid
• the end product is small and often cheaper and easier to move;
• employs a small labour force
• non-polluting industries which can be located near residential areas
• accessibility - needs to be near a road network

On the other hand, the cotton industry is largely dependent on cotton as raw material, employs low to the medium-skilled labour force and has a conventional product range. So it is not a footloose industry. Other examples of non-footloose industries include Tea, Jute and sugar industry. Hence statement 2 is not correct.