SHOULD I START BUSINESS IN THE INDIAN COTTAGE INDUSTRY?
Cottage industry, a industry that is based on a business or manufacturing activity carried in people's homes, usually a small scale business, but accounting to 80% of the manufacturing sector's employment in India. The cottage industry in India is a popular one in India as it can be started with very low investments. Usually unorganized with the production of goods takes place in the houses of labourers using conventional methods, the cottage industry has its origin in rural areas where unemployment and underemployment are prevalent.
While it is usually in a small scale, the small-scale industries and cottage industries slightly differ depending upon their features, location and ownership. Contributing to 30% of the Indian GDP, the cottage industry helps the Indian economy by involving the other unemployed workforce of rural areas. While the small-scale industries are mostly set up in urban and semi-urban areas whereas cottage industries are more concentrated in rural areas.
Another difference between the small-scale industries and the cottage industry i.e. the small-scale industries are slightly larger and hire employees to work and cottage industries are mostly run by members of the family.
This is followed by the difference that the cottage industries are not mass producers and are mainly focused on meeting the local need while the small-scale industry focuses and covers a wider range of product and areas.
Why one must invest in the cottage industry in India? Well, the key advantage of cottage industry is that it has immense potential of providing employment. Yes, the same can be proved as for an instance, it is already employing 2.2 million people in the state of West Bengal alone. When we talk about the total industrial output in India, 40% of the same is a contribution of small scale and cottage industries.
As a social benefit, the cottage industry in India offers economic independence to women in developing and developed countries as it continues to facilitate employment option to numerous families throughout the year.
AS mentioned above, the cottage industry is basically a home-based small business, more like self-employment or employment of a small group of people, so here are various industries that come under the cottage industry in India:
While many of these industries have been there in the country from ages, the art and skill they require has been passed from ancestors to their next generation and which sadly is getting scarce. While the cottage industry faces competition from medium and large industries which are seeing the better side of the customers with their high-end technologies for production, there is an urgent need for the implementation of modern technology which not only enhances productivity but also develops skills of the labourers to meet the requirements of the local market.