COTTAGE INDUSTRY What is Cottage Industry In rural

COTTAGE INDUSTRY

• What is Cottage Industry ? • In rural regions of India, many families engage in small production activities from their homes. There scale of operations is very miniscule and the workers are generally the family members themselves. There are rarely any machines involved and the production is carried out entirely by hand. The produce generally consists of handicraft, woolens, carpets, handloom articles, earthenware, jewellery, etc. The products are generally unique. • Definition: Any industry where the creation of product and services are home based rather than factory based and specific skills is required is called as cottage industry.

Characteristics of Cottage Industry • Unorganized Sector – Cottage industries are scattered all over country. They function in villages, districts and towns also. There is also no common link between them. As a result, they are unorganized. • Use of traditional skill – There is hardly any use of mechanization in cottage industries. They are based on skilful production. The skill for making the product is passed on through generations in the family. Certain products made by this sector require high skill workmanship. • Small scale production – Cottage industries are based on skilful production. There is hardly any use of machines. Even the laborers involved are family members only. Thus, they production of cottage industry is on a small scale. Moreover, they are able to maintain quality if the production is on a small scale.

• Employment generation – Cottage industry is regarded as a self-employed industry. It helps to provide employment to a lot of people in rural India. Thus, it has great importance for our country. • Preservation of culture – Cottage industries have helped to preserve the cultural heritage of the country. Certain products made in the cottage industry are based on skilful production. The skill for making such products is passed on through generations in the family. The products have a distinct identity of its own and bear the impression of the Indian culture. • Use of agricultural resources – Some cottage industries are also engaged in processing of agricultural produce. They acquire the agricultural produce which is available in that particular geographical area.