Cottage Industry in India

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 generally unorganized in character 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 country sides where unemployment and under-employment are widespread. In this way, cottage industries help the economy by engrossing a massive amount of 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 amount of capital investment for all types of hi-end technologies.

Problems faced by cottage industries in India

Cottage industries in India face dearth of capital and large quantity of labor, which force them to buy capital-saving techniques. Hence, there is an urgent need for implementation of techniques which not only enhances productivity but develops skills of the laborers and meets the requirements of the local market. Endeavors should be directed towards the development of technology so that labors can enjoy a decent lifestyle. Government should also provide subsidiaries for the growth of cottage industries especially in the preliminary stages.

The laborers of 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 modern industry. This calls for preservation and promotion of cottage industries through formulation of public policies directed at improving the industry both in context of income of laborers and technological aspects.

Organizations working for the benefit of cottage industry in India

The 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 face threat of extinction and will be surrounded by such threats if they continue receiving inadequate monetary and technological support from government.