Shrinkage from washing has always been considered a serious problem for cotton knitted fabrics and even today a high level of shrinkage in fabrics and garments remains an enigma to many people. However, the performance characteristics of cotton knit fabrics as related to its dimensional structure and therefore shrinkage are as basic and predictable as any other mathematical or physical model. Shrinkage arises mainly due to the harsh treatment given to the fabric while wet processing and drying, which results in elongation in the knitted fabric. The fabric relaxes during washing and therefore shrinkage occurs. The technique of compacting is used to achieve a natural relaxed state of the knit loop and thereby the fabric displays minimal shrinkage within acceptable levels.