Cottage Industry in India

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Cottage Industry is a concentrated form of small scale industry where the productivity of the goods takes place in the houses of the laborers and the workforce include the members of the family. The equipments used to generate products are not the hi-tech ones but generally those which are used at homes.

Cottage Industry is a concentrated form of small scale industry where the productivity of the goods takes place in the houses of the labourers and the workforce includes the members of the family. The equipment used to generate products are not the hi-tech ones but generally those which are used at homes.

The cottage industry is generally unorganized and falls under the category of small scale industry. They produce consumable products through the use of conventional methods. These types of industries originate in the countryside where unemployment and under-employment are widespread. In this way, cottage industries help the economy by engrossing a massive amount of the remaining workforce of the rural areas. But on the flip side Cottage Industry cannot be considered as the mass producer of products. It faces major risks from medium or large industries which demand huge amounts of capital investment for all types of hi-end technologies.

Types of a cottage industry in India:

  • Cotton weaving: The top cottage industries in India. Cotton clothes produced in India are globally famous. The unique design and colours make them stand out in the market. Cotton weaving is mainly found in the states: Maharashtra, Tamil Nadu and Gujarat of India.
  • Silk weaving: Silk weaving is another major cottage industry in India and India exports silk both globally and domestically. Karnataka holds 70% of the silk production in India. Munga, Tassore and Mulberry are among the most popular types of silk produced by the Indian cottage industry.
  • Handloom: Besides cotton weaving, the handloom industry of India is also very famous globally. The handloom products are very unique in design, which cannot be found in any other country. They mainly focus on mixing old designs with new designs and it becomes a trendy design.
  • Carpet making: First introduced in the Mughal Era, the art of carpet making is one of the most well-known cottage industries of India. The carpet-making industry can be found in Kashmir, Rajasthan, Uttar Pradesh, Andhra Pradesh and Punjab. The range of design, quality and texture of the carpets make it stand out and popular.
  • Handicrafts: The handicraft industry plays a significant role in India’s economy. Handicrafts include- metal products, wooden products, hand-painted fabric, embroidered goods, imitation jewellery, jute products, bamboo products etc.

Problems faced by cottage industries in India

Cottage industries in India face a dearth of capital and large quantities of labour, which force them to buy capital-saving techniques. Hence, there is an urgent need for the implementation of techniques that not only enhance productivity but develop the skills of the labourers and meet the requirements of the local market. Endeavours should be directed towards the development of technology so that labourers can enjoy a decent lifestyle. Government should also provide subsidiaries for the growth of cottage industries, especially in the preliminary stages.

The labourers of the cottage industry often find themselves fighting against all odds at every stage of their business, be it buying the raw materials or promoting their products, arranging for capital or access to insurance covers, etc. To his utter misfortune, he is exploited by all. Hence, it is important to ensure that the benefit of value-added services reaches the worker on time.

Cottage industries are the victims when it comes to attracting the attention of the modern industry. This calls for the preservation and promotion of cottage industries through the formulation of public policies directed at improving the industry both in the context of income of labourers and technological aspects.

Organizations working for the benefit of a cottage industry in India


A well-known organization like Khadi and Village Industries Commission (KVIC) is working towards the development and endorsement of cottage industries in India. Other premier organizations are Central Silk Board, Coir Board, All India Handloom Board and All India Handicrafts Board, and organizations like Forest Corporations and National Small Industries Corporation are also playing an active role in the meaningful expansion of cottage industries in India.

Despite several attempts by these organizations, the Cottage Industry still faces the threat of extinction and will be surrounded by such threats if they continue receiving inadequate monetary and technological support from the government.

Top 5 states weaving silk:

StateNumber of villages working in silk weaving
Gujarat4187 out of 18391 villages interviewed
Karnataka3676 out of 32132 villages interviewed
Assam 1167 out of 26372 villages interviewed
Odisha1091 out of 49272 villages interviewed
Tamil Nadu945 out of 17733 villages interviewed

Top 5 states producing handloom-

StateNumber of villages working in silk weaving
Gujarat6625 out of 18391 villages interviewed
Assam5488 out of 26372 villages interviewed
West Bengal1518 out of 39719 villages interviewed
Tamil Nadu1411 out of 17733 villages interviewed
Odisha1322 out of 49272 villages interviewed

Top 5 states producing handicrafts-

StateNumber of villages working in silk weaving
Gujarat7591 out of 18391 villages interviewed
West Bengal3573 out of 39719 villages interviewed
Assam3239 out of 26372 villages interviewed
Uttar Pradesh2162 out of 104031 villages interviewed
Karnataka1896 out of 32132 villages interviewed
Last Updated on August 17,2021