The cottage industry is a small-scale business based on a business or manufacturing activity carried out in the homes of the people, but in India, the manufacturing sector accounts for 80% of the employment. The cottage industry in India is a popular one in India because with very little investment can be done. Unorganized in the production of goods usually takes place in the workers home using conventional methods, the cottage industry has its origin where high unemployment and underemployment in those rural areas.
Why start a cottage industry
While this is usually small, small businesses and cottage industries vary slightly depending on their features, location, and ownership. The cottage industry, which contributes 30% to India’s GDP, helps the Indian economy by involving rural unemployed workers. While the small-scale industries are mostly set up in urban and semi-urban areas whereas cottage industries would highly concentrated in rural areas.
Another difference between small businesses and cottage industries is that small business are slightly larger and employ staff and cottage industries will often run by family members.
The cottage industries shall not be a mass producers, mainly focused on meeting local demand, while small-scale industry focuses on covering a wide range of manufacturing products and areas.
Purpose and potential of cottage industries
Why invest in the cottage industry in India? The main advantage of the cottage industry is that it has enormous potential to provide employment. Yes, an example can demonstrate this, which already employs 2.2 million people in the state of West Bengal alone. When we talk about GDP in India, 40% of it is small and cottage industries.
As a social benefit, the cottage industry in India provides economic freedom to women in developing and developed countries as it facilitates employment choices for a large number of families throughout the year.
The best cottage industries in India
As mentioned above, the cottage industry is a home-based small business that is similar to self-employment or small group employment, so here are the various industries that fall under cottage industry in India:
The most popular of all the cottage industries in India and one of the most important cottage industries in India, the popularity of cotton weaving is a result of the widespread wear of cotton garments across the country. Different vibrant colors, traditional designs, different patterns from different parts of the country mainly concentrated in Maharashtra, Tamil Nadu, and Gujarat are increasing the demand for cotton garments in the country.
One of the traditional significance of the country is the lucrative business. As India is a major silk producer and exporter, a wide variety of silk could produced in the country, as well as a wide variety of silks including mulberry, daisy, Muga, and Eri. It is also a fact that 70% of the total silk weaving industry is located in Karnataka.
A rug-making industry, mainly found in Kashmir, Uttar Pradesh, Rajasthan, Andhra Pradesh, and Punjab. The Government of India has set up the Carpet Export Council to promote knot carpets. Which are in high demand due to the high quality and texture of Kashmiri carpet, terry, and coir carpet.
Visit Delhi Haat, a place where all the handicrafts from different Indian states are on display. You will find different leather bags, shoes, and other handicrafts made from leather. While parts of India are famous for leather production, such as Tamil Nadu, West Bengal, and Uttar Pradesh. These states meet India as a high-quality leather supplier on the map.
Indian metalworking, a business used to manufacture bronze and other alloys such as silver, copper, iron, and other alloys including pans, pots, and sand animals. So Indian metal crafts are universally acclaimed and contribute greatly to the Indian economy.
Although these industries have been around for many years in many countries, the art and talent they need passed on from their ancestors to their next generation. Which is unfortunately in short supply. The cottage industry faces competition from medium and large enterprises. Which see customers as the best side with high technologies for production. There is an urgent need to implement modern technology that not only improves productivity. But also develops the skills of workers to meet the needs of the local market.
Cottage industries are generally irregular in nature and fall under small-scale industries. They produce consumer goods using conventional methods. In addition, these types of businesses thrive in areas where unemployment and under-employment are widespread. Therefore, through this system, the cottage industry helps the economy by massively involving the remaining workers in the countryside.
However, on the other hand, the industry faces many problems in different ways. To that end, the government is trying to answer the problems of this sector. Because the government knows that this sector has a lot of potential in various areas if properly supported.