Cottage industry
Also called: Cottage and village industry · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT
Meaning
A cottage industry is production done at home by a household. It uses family labour, simple tools and local materials, and is often found in villages. It gives income and work to rural families, especially artisans. In India it is supported by KVIC, the Khadi and Village Industries Commission, set up under the KVIC Act 1956.
Example
A weaving family that spins and weaves khadi at home, or a village potter who makes clay pots with family help, runs a cottage industry.
Don't confuse with
- Small-scale industry (SSI): this is a factory-based unit defined by a limit on investment in plant and machinery. It usually employs hired workers. A cottage industry runs mainly on family labour at home.
Related concepts
- Small-scale industry
- Reservation for small-scale industry
- Industrial estate
- Ancillary unit
- Micro, small and medium enterprises
- MSME classification