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Cottage Industries in India

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An introduction to Indian Cottage Industries

The cottage industry is a small manufacturing unit of goods and services with traditional or low technology equipment. The Cottage Industry is an industry where craftsmanship works are done such as handloom, cotton weaving, knitting, pottery, etc. These types of cottage industries can be set up in a home or any suitable place. Here the workers use traditional types of equipment. The cottage industries are the backbone of the rural economy of the country. The cottage Industries in India are associated with some development programs like  Poverty Alleviation Programmes, Community Development Programmes, and Integrated Rural Development. Examples of such industries are the industry of milk, food processing industry, power loom industry, handloom industry, oilseed industry in Gujarat; Stone-cutting,  handicraft industry, carpet-making industry in Rajasthan; Handloom and power loom, milk-based industry in Uttar Pradesh. Cottage industries are not capable of mass production, Their production rate is very slow in comparison to big factories and mills because of a lack of modern technology and equipment. Some other important cottage industries in India are lock and key making, pottery, washing soap making, hand made paper industry, horn button industry, cutlery industry, conch shell industry etc.

Major Types of Cottage Industries In India

Different types of industries fall under the category of cottage industry. Some of the important cottage industries are mentioned below.

  • Cotton Weaving Industry

India is in the second position in the production of fibre in the world and the major fibre produced is cotton. Cotton garments are manufactured worldwide. Cotton industries are set on both domestic industries (cottage industry) and large scale industries levels.


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  • Silk Industry

The silk industry has a unique position in the cottage industries of India. This silk industry is operating in around 54,000 villages all over the country.  The industry is providing job opportunities, and a source of livelihood for more than six million people in the rural areas of the country. The silk industry has grown domestically and internationally. A variety of silk such as Mulberry, Tasar, Eri, Muga is being produced in the country.


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  • Carpet Industry

The carpet industry is running in India since ancient times. It is one of the oldest types of cottage industries. It was introduced by Emperor Akbar in India. Carpet weaving requires skilful workers.  The carpet industry is leading as an export industry. Carpets prepared in India are exported globally to around 200 countries. 

 

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  • Leather Industry

This industry is an employment-focused industry in India. It holds a significant position in the Indian economy. It provides Jobs to more than four million people in the country. India is leading internationally in leather production.  India is the second-largest producer of footwear, the second-largest exporter of garments made from leather, the third-largest exporter of saddlery and harness items and the fifth largest exporter of leather goods.

 

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  • Handcraft Industry

The handicraft cottage industry is the traditional industry of India. The handicraft products include bamboo products, metalware, woodware, hand-printed textiles, zari goods, marble sculptures, bronze sculptures, paintings and jewellery etc. It is a rapidly growing industry in India that provides employment to millions of people. It needs low capital investment to start the handicraft industry.

            

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Famous centres of the Cottage Industries in India

The important and famous centres of the cottage industries in India are given below.

  1. Handloom

A 'handloom' is used to refer to wooden frames that are used in weaving cloths without the use of electricity. Handweaving is done on frame looms mostly weavers have these wooden frames at their homes. Some of the locations are given where handlooms are produced in large quantities in India.

  • Malnmal: Meerut, Mathura, Madurai, Varanasi, Ambala

  • Chhint: Machhilipattanam

  • Durri: Agra, Jhansi, Aligarh, Ambala

  • Khadi: Amroha, Calicut, Pune

  1. Silk Textiles

Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal and Jammu and Kashmir are leading states in the production of silk in India.

  • Chanderi Silk Saree: This saree is made from chanderi cotton and silk cotton. It is produced in Chanderi, the Ashoknagar district of Madhya Pradesh. These sarees are lightweight and have shimmered look.

  • Banarasi saree is very popular and one of the finest sarees in India. It is famous for its gold and silver zari work. Banarasi sarees are made from finely woven silk. 

  • Muga silk is produced in Assam and is also known as Assam silk. It has extreme durability. Muga silk of Assam state is used in products like traditional Assamese dress Mekhela chador and Assam silk sarees.

  • Sambalpuri silk saree is made in Sambalpur, Bargarh, Sonepur and Berhampur.

  • Kancheepuram silk saree is made in the Kanchipuram region in Tamil Nadu.

  • Baluchari Saree is originated in Bengal. 

  • Konrad silk saree is called temple saree, mostly woven for temple deities. South Indian silk sarees have many varieties such as Kanjeevaram Silk, Chettinad, Gadwal, Konrad, Mysore,  and Pochampally.

  • Paithani Silk Sarees are made from very fine silk in the Paithan town of Aurangabad. It is considered one of the finest and richest saris in India.

  • Patola Saree made in Patan, usually made from silk and very popular among high-class women. 

  • Bomkai Silk Sari also known as Sonepuri Sari is produced in the Subarnapur district. 

  1. Woollen Textiles: 

The woollen textiles are mainly produced in Amritsar, Dhariwal, Ludhiana, Machhilipattanam, Sri Nagar, Warrangal etc in India.

  1. Leather: Leather is produced in Kanpur, Unnao, Agra in Uttar Pradesh. It is also produced in Chennai, Ambur, Ranipet in Tamil Nadu and Kolkata in West Bengal.

  2. Sugar Industry (Gur & Khandsari): It is related to the jaggery and unrefined sugar industry of India. It is produced in Meerut, Uttar Pradesh. Bihar and Maharashtra are also famous centres of the cottage industries in India for producing gur and khandsari.

Important Facts About Indian Cottage Industries

The following are some important facts about Indian Cottage Industries.

  •  An institute has been established at Behrampur, Kolkata for silk related research named Central Silk Industry Research Institute.

  • The silk industry of India produces four types of Silk produced. These are Mulberry, Tassar, Munga and Eri.

  • Gur (jaggery) and Khandsari (unrefined sugar) are mainly produced in Uttar Pradesh.

  • Cottage Industry Board was established to maintain and develop cottage industries in 1948.

  • Central Silk Board was established in 1949 for the development of silk industries in India.

  •  For promoting the handicraft business All India Handloom Board was established in 1950.

  • The Khadi and Village Industries Commission was formed in 1957 during the second five-year plan of India.

Advantages of Cottage Industry

The cottage industries have certain advantages which are given below.

  • The cottage industries can be set up at home. There is no need for any big location to start the business. It can be initiate with the help of family members and later when the business grows other workers can be hired.

  • The operating cost of the cottage industry is not high.

  • The cottage industry has a positive impact on the rural economy. The rural farmers are not able to make their two ends meet. The cottage industries support them financially.

  • The cottage industry provides local products. The food products of cottage industries used to be freshly made from local ingredients. The customer enjoys high-quality products.

  • The cottage industry provides quality products because most products are made one by one. The buyers are often attract to handmade items.


In the world of modernization, there are many large factories and mills with big machines, smoking chimneys and hundreds and thousands of workers. The condition of cottage industries in India is not very good. Every effort should be made in order to revive cottage industries. It is also not possible to establish large industries everywhere. At the same time, cottage industries can start at the home. After getting a brief account on the cottage industries in India it can be concluded that both industries are essential for the development of the nation.

Did You Know?

  • The cotton weaving industry is the largest cottage industry in India.

  • Cottage and small scale industries take part in about 40% of the total industrial output in India. 

FAQs on Cottage Industries in India

1. What are the disadvantages of cottage industries?

Cottage industries are providing strength to the economy of the country but they also have some disadvantages. The low output is one of the disadvantages of the cottage industries on the other side the larger factories and mills are producing high output at the same time. The cost of cottage industry’s products is high because they do not use modern techniques of production. The raw materials are limited which also becomes a major issue for cottage industries. The industry is facing the problem of capital shortage because such industries are run by local people. They used to borrow loans to start their business.

2. Why cottage industries are important in India?

The cottage industries are very important for the economical development of the country. The cottage industries fulfil many of our needs. If we get our clothes from mills then the buttons are made from cottage industries. Therefore it is important to balance both the large industry and cottage industry. They are providing support to the rural economy. The majority of people of India live in villages. They get their goods from cottage industries. The cottage industries are the source of employment in India.