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Cottage industry UPSC| Industry | geography of India

Table of Contents:

  • What is Cottage Industries?
  • Features of the cottage industry
  • Differences between the cottage and small scale industries
  • Role of Cottage Industries in the Indian Economy


What is Cottage Industries?

Cottage industries or cottage manufacturing are also called household industries or rural industries or traditional industries. It is the smallest industry unit and it is different from small-scale industries.

For example,

Pots making, bamboo basket weaving, fabric, mats, Curtain making, furniture making, Jewellery making of gold or silver.


Features of cottage industry:

  • Organized by an individual with help of private resources
  • Normally usage of family members or local talent as labor
  • The living house is an economic space for the cottage industry.
  • Very small capital investment for arranging local tool
  • Usage of indigenous technology and knowledge
  • Finished goods may be consumed in the same houses or sold in the local market
  • Capital and transportation generally do not much influence
  • Low commercial significance


Difference between the cottage and small scale industries:

  • There is no separate space for cottage industry; economic activities are done in-house whereas there are generally separate economic spaces for small scale industries
  • The cottage industry does not classify based on revenue or investment whereas small-scale industry is classified based on revenue or investment.
Role of Cottage Industries in the Indian Economy:
  • Cottage industries are the backbone of the rural economy
  • Major employment generator
  • Non-Polluting
  • Local resources usage
  • Livelihood for millions of the rural population
  • Reduce Rural to Urban Migration.
Try to solve the following questions:
  • What are desired possible changes in our trade policy to promote the development of cottage industry? (200 words, 15 marks)

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