Blackbook Nidhi

Overview of Cottage Industry in India
Executive Summary
‘REAL India resides in RURAL India.’ Cottage Industries support a large portion of the
rural population of India acting as one of the major sources of its economy, and are
responsible for having hugely preserved the cultural heritage of India. Not only do they
help this country in maintaining a distinct identity of its own but also provide it with a
unique platform to display its specialty whenever a tough competition is faced in the
international markets. That is the only time when the indigenous goods can fairly
compete with the foreign goods due to the impression of Indian culture that makes them
unique.
Cottage industries have always existed in our country but they were not developed to
their full capacity during the colonial rule. The members of a family from within their
homes usually run these units. Items like leather-goods, baskets, toys, ropes etc. are
usually the products of the cottage industries. However spinning and weaving cloth is
the main cottage industry of our country. Cottage industries serve to provide farmers
with an additional income.
Cottage industries do not use big machines, electric power and horrid labour. Nor there
is the question of the exploitation of workers. The workers and his family being both the
employees and the employers they, get all the earning from their business. The farmers
carry on their cottage industries side by side with their main occupation of agriculture.
The workers enjoy freedom. Though they maintain a daily routine, but there is no
rigidity. The products of the cottage industries are the result of the worker's hard labour.
Hence, their price always remains high in comparison with the goods made in factories.
Cottage industries have some real and practical advantages. They make the best use of
woman labour. They make the work joyful and pleasant. There is no corruption and no
exploitation of the poor by the rich. In cottage Industries there is no fear of a quarrel
between the labour and factory owner.
In a country like India where unemployment and poverty are serious problems, cottage
industries play a significant role in lessening the gravity of these problems. Our
government has always given due importance to the cottage industries. A large sum
has always been allotted for their development in the various five year plans of the
country. As a result we have achieved much progress in this regard. Still much more is
needed to be done.
Kishinchand Chellaram College 1

CHAPTER 1: Introduction
(i)Meaning
The term “cottage industry‟ is used when products are manufactured on a small scale.
Cottage industries or the small scale industries (SSIs) are the terms used for small
business carried on at home involving very less number of people as laborers who may
or may not be the members of one family and sometimes, such a production or
manufacturing of goods involves those traditional artisans and craftsmen who have
inherited their work as an art form from their previous generations. Their various goods
like dress fabrics such as khadi, leather, silk, cotton, wool, muslin, etc, many precious
items like jewellery, ornaments, statues, idols, gems, stones, etc and edible items like
spices, oils, honey, etc have a huge demand not only within India but also in the foreign
markets.
(ii)Indian cottage industry

India is well known for its large number of traditional cottage industries. But with the
advent of the industrialization, cottage industries witnessed a sharp decline. However,
the government has taken steps to revive cottage industries and they now play an
important part in contributing to the economy of the country. The top five Indian cottage
industries are cotton weaving, silk weaving, carpet making, leather industry, metal
handicrafts and small food processing industries.
Cotton weaving is a very important cottage industry in India. This skill dates back to
ancient times as cotton clothing is widely worn around the country. Indian cotton
weaving is known for traditional designs and patterns done by skillful weavers with their
looms. The cotton industry in India is concentrated in Maharashtra, Tamil Nadu, and
Gujarat. Silk weaving is another famous cottage industry in India. India is one of the
major producers and consumers of silk as it is worn on special occasions such as
weddings and festivals. Mulberry, Muga, Tassore, and Eri are the types of silk produced
in India. Around 70% of the silk weaving industry in India is concentrated in Karnataka.
Carpet making was introduced in India during the Mogul era. Even though the Kashmiri
carpets are world famous for their fine quality, India also is known for its durries and coir
mats. The carpet making industry in India is in Kashmir, Rajasthan, Punjab, Uttar
Pradesh Andhra Pradesh and Punjab. The Government of India has set up the Carpet
Export Promotion Council for promoting hand knotted rugs and all other types and
styles of floor coverings from around the country.
India is a supplier of high quality leather to the global market. The Indian tanning
industry can produce around 10% of the global demand. This industry employs around

2.5 million people and is considered one of the major export earners for India. The
major leather producing regions in India are Tamil Nadu, West Bengal and Uttar
Pradesh.
Metal has always been used in India to make figurines, utensils, jewelry. Metal
handicrafts have a distinctly Indian touch and are widely appreciated around the world.
They have been a significant contributor to the Indian economy.
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.
In the present scenarios there have been innovations made in the industry itself where
people have come up with new art and crafts and have started selling them online either
through social networking sites or their own web pages. Taking orders online and
delivering it to the customer’s door step. Thus such modern based cottage industry units
are either into baking, making of accessories, creative gifts and home decor and many
more.

(iii)Need for Cottage Industry

Cottage Industry preserves an enormous potential for employment generation. The
person who is being employed feel proud of himself as he is basically regarded as a
self-employed one. Cottage Industry has given economic independence to the women
of India. India is a country of huge population. Most of the people are living in the
villages. Cottage Industries support a large section of the population living in rural India.
It is the traditional business of rural India that supports the rural economy. For more
than four months in a year, our cultivators have no work to do. Cottage industries can
give the cultivator useful employment during spare time.
Manufacturing of quality products involves those traditional artisans and craftsman who
have inherited the art of work from their previous generations. Goods like dress fabrics
such as Khadi, leather, silk, cotton, wool, muslin, etc, and others like ornaments,
statues, idols, stones, gems, etc besides edible items like spices, oils, honey etc have a
huge demand in India and in foreign markets as well.
Cottage Industries are of cultural and economic importance to India. They keep the age
old traditions alive and also provide employment to a number of people. Support should
be provided by the community to prevent exploitation and further develop these
industries as they face stiff competition from other economies. In the over-populated
countries like ours, the only way to fight the monster of unemployment is the
development of cottage and small scale industries.
(iv)Role of Cottage Industries
Indian Cottage Industries are destined to play a significant role in the economic
development of the country while keeping in view the potential for employment
generation, preservation of cultural heritage and the dispersal of industrial activity into
the backward regions.
Employment generation: Another major occupation in Indian villages other than

agriculture in India is the cottage industry. This industry has emerged as a major source
of employment in Indian villages over the period of time. Many people are involved in
various kinds of art and crafts works. The villagers produce different types of handicrafts
products and many of them are earning their livelihoods by marketing them. The
occupations like artisan in pottery, wood, cloth, metal and leather have been in
existence in Indian villages, since the ancient period and are found even in the modern
times. Many Indian villagers are dependent on these occupations to earn their
livelihoods.

Large Exports: Many products of the cottage industries like handloom, cotton fabrics,
silk fabrics, handicrafts, carpets, jewellery, etc. are exported to foreign countries. Their
share in the total exports is as much as 40%. In this way this small-scale sector makes
a very valuable contribution to the accumulation of foreign exchange resource of the
country.
Use of Domestic resources: The cottage industries use resources which are available
locally which would otherwise have remained unused. These resources are the hoarded
wealth, family-labour, artisan’s skills, native entrepreneurship, etc. Being thinly spread
throughout the country, these resources cannot be used by large-scale industries which
need them in big amounts and at a few specified places.
Besides using these resources, the cottage industries provide an environment for the
development of forces of economic growth. Using the hoarded wealth, these industries
put into circulation savings which propel investments in the economy. These industries
also provide opportunities to the small entrepreneurs to learn, to take risks, to
experiment, to innovate and to compete with others.
Promoting Welfare: These small-scale industries are also very important for welfare
reasons. People of small means can organize these industries. This in turn increases
their income-levels and quality of life. As such these industries help in reducing poverty
in the country. Further, these industries tend to promote equitable distribution of income.
Since income gets distributed among vast number of persons throughout the country,
this help in the reduction of regional economic disparities.
Another advantage of great significance of these industries is the upgrading of the lives
of the people in general. The freedom to work, self-reliance, self-confidence,
enthusiasm to achieve and all such traits of a healthy nation can be built around the
activities performed in these industries. It also becomes possible to preserve the
inherited skill of our artisans which would otherwise disappear. All these benefits flow
from the fact that these industries are highly labour-intensive, and that these can be set
up anywhere in the country with small resources.
Equitable Distribution of National Income: The main arguments put forward in
support of cottage industries are that they ensure a more equitable distribution of
national income and wealth. This happens because of the following two considerations:
(a) The ownership of this small-scale industries is more widespread than the ownership
of large- scale industries, and
(b) They possess a much larger employment potential as compared to the large
industries.

Regional Dispersal of Industries: There has been massive concentration of large-

scale industries in the states of Maharashtra, West Bengal, Gujarat and Tamil Nadu. As
a result, disparity in industrial development has increased. Even within these
industrialized states, industries have tended to get concentrated in a few large cities like
Mumbai and Chennai.
People migrate in large numbers from villages and lower order urban centers to these
centers of industrial development. This swells the population of slums and creates
various social and personal problems. The whole urban environment gets polluted.
As against this, these small-scale industries are mostly set up to satisfy local demand
and they can be dispersed overall the state very easily. They can also effect a
qualitative change in the economy of a state. The most glaring example of this
phenomenon is the economy of Punjab which has more small- scale industrial units
than even the industrially developed state of Maharashtra.
Mobilization of Capital and Entrepreneurial Skill: Small-scale industries are at a

distinct advantage as far as mobilization of capital and entrepreneurial skill is
concerned. A number of entrepreneurs are spread over small towns and village
industries are distributed over the entire length and breadth of the country.
Similarly, large-scale industries cannot mobilize the savings done by people in areas far
flung from the urban centers. But this task can be effectively accomplished by getting up
a network of small-scale and cottage industries. In addition, a large number of other
resources spread over the country can be put to an effective use by the small-scale and
cottage industries.
The rapid development of small-scale industries in the post-Independence period is a

proof that given the necessary credit, power and technical knowledge a large quantity of
latent resources of the economy can be mobilized for purposes of industrial
development.

CHAPTER 2: Evolution of Cottage Industry
(i)History
The glorious past of cottage industries is well-known. We had flourishing cottage
industries in early times, many of them having wide markets abroad. The skill of the
Indians in the production of delicate women fabrics, in the mixing of colours, the working
of metals and precious stones, the preparation of essences and in all manners of
technical arts has, from very early times, enjoyed a world-wide celebrity. The muslin of
Dacca, the shawls and carpets of Kashmir, the silk clothes of Delhi and Agra, the
marble work of Jaipur and the velvets of Lucknow are a few products for which the
people were crazy.
Since ancient times in India, such indigenous products have been able to attract foreign
traders and merchants. They helped India in successfully establishing trade relations
with the Greek, Chinese and Arab merchants. Even in the medieval India, Indian
craftsmen and artisans flourished well under the rule of the Turk, Afghan and Mughal
dynasties.
But after the advent of the East India Company, there occurred a drastic change in the
running of these cottage industries. In order to have more and more luxury items at the
cheapest prices, the European traders and merchants exploited the Indian peasants to
an unimaginable extent due to which these cottage industries witnessed a severe lash
to their production. After that, the Industrial revolution in the West also gave a fatal blow
to their economy and led to a considerable decline in their number. Although, the
‘Swadeshi’ and the ‘Boycott’ movements led by Gandhi helped in the promotion
of khadi and other Indian fabrics, but still, they could not help much in saving the decline
in the manufacturing of the items that involved fine work as well as an artistic taste.
(ii)Emergence
The decline of these industries began in the third decade of the 19th century. The main
causes of decline were;
(1) The industrial revolution in England and competition with mill-made goods,
(2) Alien rule and restrictive measures on the import of Indian goods into England,
(3) Disappearance of the demand of the products of cottage industries by Kings and
Nawabs as their courts came to an end,
(4) No liking for indigenous products by the newly-rising educated class, and
(5) Deterioration in the quality of Indian products themselves.

After the independence of India in 1947, there was a much-needed change that was
introduced in the country for the improvement of the economic condition of India and as
a consequence of which, the cottage industries were neglected again.
Although, later, they became an integral part of India’s five-year plans and more so after
the implementation of the second Five-year plan.
Since then, after more than sixty two years of independence of India, the contemporary
condition of these small scale industries is under control more than ever before. They
are run with a joint co-operation of the public and the private sectors. Now, almost every
state in India has its own set of cottage industries whose art and craft items depict the
traditional art form and the culture of that region. They prove to be boons for those who
are self-employed or unemployed by providing them with the means to earn their
livelihood.
On October2, 1993, the govt. of India has started the “Prime Minister’s RozgarYojana
Scheme” for the educated but unemployed youth for providing them with self-employed
ventures in Industries. The youths are now provided with the facilities of getting training
in the government –approved institutions where they could learn the techniques of
services and business, etc. The trained persons were also provided financial assistance
for the initial expense in setting up an industry. Under the Tenth Five-year Plan, the
areas are selected-these are Leather and leather products, Textiles and Readymade
Garments, Gems and Jewellery, Pharmaceuticals, Information Technology, Bio-
Technology, Automobile component and Food Processing. To flourish cottage
Industries training facilities are now provided to Handloom Weavers, Spinning Industry,
Power loom Industry, Garments Industry and similar like other industries for the benefits
of common people.

(iii)Role Of Government
Small businesses contribute tremendously to the economy and are often termed as
engines of job creation. They account for a huge chunk of the workforce in India. It
becomes imperative for the government to support and provide the necessary
resources to help them grow and sustain themselves. With this perspective, the
government of India provides institutional support and various opportunities through its
ministries, bodies and programmes.
Few of these are listed below:
Public Sector Banks: Banks are the most accessible source for financial support. They
offer a range of services and schemes including loans and credit facilities for various
business needs. Some of these cover: Working capital finance available to all segments
of industries and services; corporate term loans for new ventures and also for
expansion or renovation of existing businesses; Term finance and deferred payment
guarantee for capital expenditure or acquisition of fixed assets.
National Bank for Agriculture and Rural Development (NABARD):NABARD works

towards integrated rural development and helps promote rural businesses and small
industries, agriculture and cottage industries. They offer various training and
development and consultancy services as well as credit facilities to support these
businesses.
National Small Industries Corporation Limited (NSIC): Set up with the objective to

boost small scale industries in India, NSIC helps import machines on easy hire
purchase terms; procure and distribute imported raw materials; export products from
small scale industries, etc. They have also started a new scheme to help small
businesses understand credit ratings and the importance of maintaining good financial
track record.
Small Industries Development Bank of India (SIDBI): As the name suggests, SIDBI
was primarily set up to provide financial assistance to small scale industries in India. It is
one of the leading government bodies that provide various financial schemes across a
range of industries and services. Some of the schemes are Direct Assistance Scheme,
Indirect Assistance Scheme, Promotional and Development Activities, National Equity
Fund Scheme, Technology Development and Modernization Fund Scheme, Single
Window Scheme, MahilaUdyamNidhi (MUN) Scheme and Equipment Finance Scheme.
National Commission for Enterprises in the Unorganized Sector (NCEUS): This

Commission was constituted for the welfare of enterprises in the unorganized and
informal sector. Their primary role is to generate business and employment

opportunities in the unorganized sector. One of the provisions also includes providing
access to micro-credit to the unorganized entrepreneurs.
Rural and Women Entrepreneurship Development (RWED): This programme is

focused on encouraging entrepreneurship among women and the rural population. It
supports various business and entrepreneurial initiatives by providing timely advice and
counseling, initiating training and development programmes and helping secure credit
opportunities.
The Rural Small Business Development Centre (RSBDC) a centre sponsored by

NABARD for small and medium enterprises which is setup by the world association.
The main aim for RSBDC is to work for socially and economically disadvantaged
individuals and groups. They organize many programmes on skills up gradation, rural
entrepreneurship, awareness, counseling and training. Through these various
programmes several rural unemployed youth and young women learn different trades
and reap good benefits.
Khadi and Village Industries Commission (KVIC) is a statutory bodyformed by

the Government of India, under the Act of Parliament, 'Khadi and Village Industries
Commission Act of 1956'. It is an apex organization under the Ministry of Micro, Small
and Medium Enterprises, with regard to khadi and village industries within India, which
seeks to - "plan, promote, facilitate, organize and assist in the establishment and
development of khadi and village industries in the rural areas in coordination with other
agencies engaged in rural development wherever necessary.
Incentives: The government of India emphasis on economic and industrial

development of backward, tribal and hilly areas of the country. Several committees have
been setup to identify the criteria of backward areas and suggest schemes those are
needed. These programmes vary from state to state. Some benefits provided are; land,
power, water, sales tax, finance, raw materials, tax holiday, etc. To sum up cottage
industry being a small scale industry receives various forms of benefits from the
government of India.
The introduction of Market Development Assistance scheme (MDA), Entrepreneur

Development Institute (E.D.I.), State Industries Centers – EDP Training, Women
Entrepreneur Development Programme, Construction of DIC building, maintenance,
contribution to specific fund (TTM) etc, Assistance to Coir Industrial Co-operative
Societies, Assistance for setting up of Industries (Capital Investment Subsidy to SSI
Units) etc, has made it possible for the cottage industries to flourish well. “Handloom
Weavers’ Co-operative Societies”, “Spinning Industry”, “Power loom Industry”,
“Garments Industry”, “Knitwear Industry”, “Processing Industry”, etc have all been set up

to encourage the working of these SSIs. The contemporary condition of SSIs in India is
much better than what it could be if they were not given so much support by the
government of India. But still, that does not lessen their problems in anyway.
(iv)Licensing and Registraion

Licensing
License means a government-issued permission to engage in an activity or to operate a
business.
Criteria for cottage industry in India:
Industry employing less then 100 workers
Where production does not involve large and heavy equipments
Labour intensive
Industry producing arts and crafts representing indian culture
Industry having fixed assets of less than Rs.10 lakhs need not obtain any license
(subject to the condition that the unit is not owned, controlled, or subsidiary of any other
undertaking). However compulsory license is required if the unit wants to produce a
product restricted from production.
All small scale units must compulsorily abide by the rules and regulations prescribed by
the state or local authority under the Factories Act. Also registerations should be done
in acordance to The Industries(Development and Regulation) Act,1951.
Registration
The Scheme of voluntary registration of Small Scale, Village and Cottage Industries with
the State Directorate of Industries was introduced in 1960 and such registered industrial
units were made eligible for different types of assistances by the Governmental
Agencies. Initially a uniform norm for registration were not laid down with the result that
some of the States had granted different registration numbers to different lines of
manufacturing processes to the same unit thereby resulting in multiple registration.
Therefore to avoid such anomalies a uniform set of Application Forms for both
Provisional as well as Permanent Registration were evolved out at the time of
introduction of the revised procedure of registration of these sectors of industrial
undertakings in 1975. With the passage of time, the Government of India, Ministry of
Commerce and Industries further simplified the procedures by simplification of the forms
for registration and also introduced the coded system to indicate the State, Districts and
the unit's serial number so as to facilitate computerization of the whole system of SSI
registration, in 1989.

Registration of Small Scale, Village and Cottage industries are done under two stages:
i. Provisional and
ii. Permanent Registration
Provisional Registration: In Provisional registration, you will be issued a provisional

(temporary) SSI registration certificate. Provisional registration is granted to a unit at its
pre- investment period to enable it to take necessary steps to apply for financial credit,
land or an industrial set, water, power or telephone connections, etc.
It is usually provided for a period of one year and can be subsequently renewed for four
more periods of six months each
If the entrepreneur is not in a position to commence production on account of

circumstances beyond his control, extension of the provisional registration period would
be considered.
Permanent / Final Registration: A provisionally registered industrial unit when it is

about to go into production is to apply for grant of Permanent / Final Registration. The
entrepreneur can apply for permanent registration after:
 The factory building is ready

 All requisite machinery, testing equipment and pollution control equipment are
installed
 Power connection is established
An existing and functioning industrial unit is eligible to apply for Permanent / Final
Registration without going into provisional registration processes.
CHAPTER 3: MERITS AND DEMERITS

(i)Importance Of Cottage Industries

There is a shortage of capital and technical skill in sub continental. It is not possible to
establish the heavy industries. While it is very easy to increase the number of
small scale industries. The examples of Japan, Hong Kong and Taiwan are before us.
Following are the main advantages of small scale industry in sub continental:
1. Increase in Industrial Product:
There is a shortage of manufactured goods in our area. We spend a lot of foreign
exchange on the import of these goods every year. So we should increase the small
scale and cottage industry to remove the shortage of these goods.
2. Increase in Employment:
The rate of unemployment is increasing day by day. To control unemployment it is
necessary that we should increase the small scale industries because these are labour
intensive. Our farmer can also easily work in small scale scale industry. It is not possible
to provide Govt. jobs to all the unemployed people. It may also increase the self
employment.
3. Increase in Foreign Exchange Earnings:

the various kinds of goods like carpets and sports sold in the international market. We
earn a lot of foreign exchange by exporting these goods.
4. Use of Industrial waste:

The waste of large scale industries like cotton and steel can be used by the small scale
industry. In this way we can save a lot of capital.
5. Provides Employment to Women:

Our women is engaged in the cottage and small scale industry and increasing the
production. Because in our society women cannot work with other men in the factories.
We should increase the number of cottage industries to make the female sector a real
asset of the nation.
6. Increase in the Income:

Increase in the production of goods on small scale increase the income of the people.
The rise in income improves the standard of living. In rural areas there is great need of
small scale industry.

7. Cheaper Production:
The small scale industry is labour intensive while labour is cheap in sub continental, so
the production of small scale industry is cheaper. Due to low prices people purchase
more goods and market expands.
8. Proper Distribution of Wealth:

The small scale industry increases the income of the people and reduces the gap
between rich and poor. We can reduce the poverty by expanding the small scale
industry.
9. Establishment With Small Capital:

We can establish these industries with small capital. In subcontinental most of the
people are poor, so they can start the production with small capital.
10. Development of Backward Areas:

We can develop backward areas by establishing the small scale industry in these areas.
It will remove poverty from backward areas.
11. Reduction of Population Pressure:
The development of small scale industry reduces the pressure of population on land
and increases the income of the people.
12. Reduction in Migration:

The unemployed labour force is migrating to the other countries. If we expand the small
scale industry, it can serve the nation instead of serving the other countries.

(ii)Advantages Of Cottage Industries

Cottage industries have some real and practical advantages. They make the best use of
woman labour. They make the work joyful and pleasant. There is no corruption and no
exploitation of the poor by the rich. In cottage Industries there is no fear of a quarrel
between the labour and factory owner. Cottage industries do not require much foreign
exchange earnings of the country. They can bring about awakening among the people
which can make them self-confident and self-reliant.
Following are the other prospects of cottage industry:
Low Start-Up Costs
Cottage business start-up costs are generally low. You don't have to pay for a mortgage
or rent on a separate building space. You also don't have to buy separate equipment,
tools, shelving, fixtures and other materials to maintain and use in the business. The
Internet allows for a relatively low-cost way to set up a website and promote your
business to local consumers and resale businesses.
Save Operating Costs

By operating the business from home, cottage businesses save money by not having to
rent a commercial kitchen, office space or plant, and the associated utilities and other
costs. Cottage industries also are exempt from many of the licensing and registration
fees businesses often have to pay. This allows entrepreneurs to start their business
without investing major capital or taking out loans. Cottage businesses may need local
licenses to operate, but these are usually not as expensive and as difficult to obtain as
the licenses normal business operations require.
Fewer Regulations
Businesses that operate from home generally are not subject to as many regulations as
those that operate in strictly business locations. This translates to less hassle, easier
start-ups and fewer overhead costs. Even home baking businesses, which previously
were not permitted or had stringent regulations governing them, can now operate much
more freely from home, thanks to laws recently passed in many states. This doesn't
mean cottage industries have no regulations -- they usually need licenses or permits of
some kind -- but the rules governing them are fewer and less strict.
Economic Opportunity
Cottage industries bring increased economic opportunities to individuals and
communities. In some areas of the U.S. and the world, cottage industries make the
difference between poverty and stability. When given the opportunity to produce items
for sale on a manageable scale, many types of creative producers can earn money from
work they enjoy doing.

Unique Products
Since items made in cottage industries are created one by one, rather than mass
produced, they offer buyers handmade quality. Many products are unique or slightly
different because they are handmade. Yet, due to their lower overhead costs, items
made by cottage industries are not necessarily more expensive than manufactured
items.
Specific Legal Protections

Increasingly, local, state and federal governments have recognized the value of cottage
industries and worked to add specific legal protections for them. The state of Texas
enacted a new cottage food law in late 2011 to clear the way for women operating
home-based jam, jelly, baked goods and other food commodity operations to avoid
previous health and safety requirements for food service operators.

(iii)Problems faced by Small-scale industries

The small scale industries, despite their importance for the economy, are not
contributing to their full towards the development of the country. It is because these
industries are beset with a number of problems in regard to their operations. These
problems are discussed below:
Inadequate Finance: A serious problem of these industries is in respect of credit, both

for long-term and short-term purposes. This is evident from the fact that the supply of
credit has not been commensurate with their needs associated with fixed and working
capital. Very often the credit has not been timely. Its delayed availability has been major
factor in causing much of industrial sickness in this sector. The credit situation is
particularly hard for the very small or tiny units.
Difficulties of Marketing: These small-scale industries also faced the acute problem of
marketing their products. The problems arises from factors such as small scale of
production, lack of standardization of products, inadequate market knowledge,
competition from technically more efficient units, deficient demand, etc. apart from the
inadequacy of marketing facilities, the cost of promoting and selling their products too is
high. The result is large and increasing subsidies which impose heavy burden on the
government budgets.
Shortage of Raw Materials: Then there is the problem of raw materials which
continues to plague these industries. Raw materials are available neither in sufficient
quantity, nor of requisite quality, nor at reasonable prices. Being small purchasers, the
producers are not able to undertake bulk buying as the large industries can do. The
result is taking whatever is available, of whatever quality and at high prices. This
adversely affects their production, products, quality and costs.
Low-Level Technology: The methods of production which the small and tiny
enterprises use are old and inefficient. The result is low productivity, poor quality of
products and high costs. The producers because of lack of information know very little
about modern technologies and training opportunities which concerns them. There is
little of research and development in this field in the country.
Competition from Large-Scale Industries: Another serious problem which these

industries face is that of competition from large-scale industries. Large-scale industries
which uses the latest technologies with access to many facilities in the country can
easily out-priced and out-sell the small producers. With the liberalization of the economy
in recent years, this problem has become all the more serious.

(iv)Steps Taken By Government To Overcome The Problem

Keeping in view the importance of cottage and small seals industries the government
has taken many steps to overcome their problems. The main steps taken are:
(a) The Union Government has set up a number of agencies to help the village and
small industries. These include the Small Scale Industries Board the Khadi and Village
Industries Commission, the All India Handicrafts Board, the AH India-Handloom Board
and Central Silk Board.
(b) Credit facilities are made available to these industries through a number of
institutions. Small scale sector is included m the priority sector for the supply of
institutional credit.
(c) Industrial estates and rural industrial projects have been set up and industrial co-
operatives have been organized.
(d) To encourage the small scale sector, the Central Government has reserved 807
items for exclusive production in the sector.
(e) The District Industries Centres are being established at the district level to provide
under one roof, all the services and support required by small and village entrepreneurs.
The Industrial Policy Resolution, 1980 has these following provisions for the
development of cottage and small-scale industries:
(a) Introducing a scheme for building up of buffer stocks of essential materials which
are often difficult to obtain. Special needs of states which rely heavily on a few essential
raw-materials will receive priority.
(b) To generate as many ancillaries and small and cottage suits as possible, the
government will set up a few nucleus plants in each district. A nucleus plant would
concentrate on assembling the products of the ancillary and small scale units falling
within its orbit.
(c) Enhancing the limit of capital investment for small scale and ancillary industries.

CHAPTER 4 :Types Of Cottage Industries

The economy of a nation depends on the industries present in that country. In a country
like India, cottage industries have a prominent place.
India is a country with a large rural population. Cottage industries greatly help rural
development. In these cottage industries, goods can be produced with a small
investment. Some of these industries are run on a co-operative basis. Cottage
industries provide livelihood to millions of people. Cottage industries help the
unemployed youth a lot. In villages many families pursue vocations that come down
from generation to generation. Weaving, tailoring, pottery, carpentry and dyeing are
some such work in their leisure.
These cottage industries manufacture handicrafts, hand looms, tobacco, cigars,
decorative articles, incenses, perfumes, and many more products. All these products
from cottage industries were manufactured by skilled persons manually.
(i)Handloom and Weaving

Along with the artistry of weavers, the Indian handloom industry demonstrates the
richness and diversity of Indian culture. The handloom industry is the second-largest
employment provider for the rural population in India after agriculture. Indian handloom
products are known for their unique designs and finesse. The trend is to mix old designs
with new techniques and create original products.
The industry has strong infrastructure, with about 2.4 million looms of varied designs
and construction, indicating significant production capacity.
Over the centuries handlooms have come to be associated with excellence in India's
artistry in fabrics. Right from the ancient times, the high quality of Indian handloom
products like muslin of Chanderi, silk brocades of Varanasi, the tie and dye products of
Rajasthan and Orissa, the Chintas of Machhlipatnam, the himroos of Hyderabad, the
Khes of Punjab, the prints of Farrukhabad, the Maheshwari sarees of Madhya Pradesh
and the Patola sarees of Baroda have been famous all over.
The art and craft traditions since almost the dawn of civilization has been kept alive
despite sweeping changes due to continuous efforts of generations of artists and
craftsmen who weaved their dreams and visions into exquisite handloom products.
The handloom industry now provides livelihood to over 90 million people in the
country. It continues to be craft-oriented, even though it was circumscribed by a limited
choice of processing and technology. During the first half of the present century there
was very little effort to develop the handloom sector and the handloom weavers were
pitted against modern textile mills. They struggled to survive not only against the unfair
competition but also against the unscrupulous middlemen who did everything to ensure

that the weavers remained in perpetual debt trap. It is a tribute to their ingenuity and
skill that they succeeded in preserving the long tradition of excellence in hand-weaving,
dyeing, in-printing and craftsmanship.
The dawn of Independence provided an opportunity to accord priority treatment to the

handloom industry. At the time of Independence, there were about three million
handlooms in India, largely of poor quality because of inferior raw material and ill-
organised marketing infrastructure. The situation worsened in 1952 due to a slump in
the textile market which led to a heavy accumulation of handloom stocks. The All-India
Handloom Board was reconstituted at the initiative of the then Minister for Commence
and Industries, T.T. Krishnamachari, seven years after its dissolution in 1945, to advise
the Government and propose schemes for the development and survival of handlooms.
Breakthrough
With a view to raising funds for the industry and organising weavers+
cooperatives, Parliament passed the Khadi and Other Handloom Industries
Development Act in 1953.
To facilitate marketing of fabrics made in the handloom cooperatives, a national
level apex body called the All India Handloom Fabrics Marketing Cooperative
Society was set up in 1955.
The Handloom and Handicrafts Export Corporation of India Ltd (HHEC) was set
up in 1958 to promote export of handlooms.
To ensure a steady supply of raw materials such as yarn, dyes and chemicals to
the State handloom organisations, the National Handloom Development
Corporation (NHDC) was set up in 1983.
The Government appointed a high powered study team and on its
recommendations the Office of Development Commissioner (Handlooms), a
nodal agency at the Centre, was set up in 1976 to ensure a scientific growth of
the handloom industry.
During the VIIIth Five Year Plan (1992-97) the Centre released Rs.1,098.8crore
to the State governments and other agencies to implement various schemes for
the benefit of the handloom weavers. As a result, the production of handloom
fabrics registered more than 14-fold increase from a level of 500 million sq. mtrs.
in the early 50s to 7,235 million sq.mtrs. in 1996-97.
The export of handloom goods also increased and touched approximately
Rs.2,100crore in 1996-97. It has now become the largest economic activity in the
country after agriculture, providing direct and indirect employment to more than
three million weaver households. This sector contributes nearly 22 per cent of the
total cloth produced in the country.

Encouragement
To consolidate efforts made during the earlier Plans and enhance the competitiveness
of the handloom sector, a new scheme was introduced during the Ninth Five Year
Plan-‘A Work shed-cum-Housing Scheme’ has been initiated to provide a conducive
production environment and basic necessity of life to the handloom weavers.
Under the scheme, Rs.47.46 crore has been released to 19 States for providing
work shed and work shed-cum housing facilities to over eighty thousand
weavers.
During the Ninth Five Year Plan the Government of India's assistance to the
handloom weavers has been enhanced from Rs.4,000 to Rs.7,000 crore for rural
work shed and from Rs.14,000 to Rs.18,000 crore rural work shed-cum-housing.
The assistance for urban work shed is Rs.10, 000 and for urban work shed-cum-
housing Rs.20,000.
The restrictions on participation of various organizations have also been
removed.
The Government is subsidising 50 per cent of the space rent, electricity and
water charges besides making a handsome provision for publicity to attract
buyers.
The Government has also revised the insurance-cum-health package scheme to
look after the welfare of the handloom weavers. Under this scheme, insurance
cover would be available to the handloom weavers against natural calamities and
personal accidents in addition to the coverage of hospitalization and maternity
benefits. In case of death the insurance cover would be Rs.1 lakh.
Large footprint of the handloom sector in the economy
While the weavers face a dismal situation for their livelihood, there is a large market
for India's handloom products both domestically and internationally. Handloom
production has significant contribution to the national GDP and export earnings.
According to the Ministry of Textiles, export earnings as late as 1998-99 was
Rs.1,956crore. Current figures are expected to be around the same. (1 crore = 10
million.)
Handlooms are environment-friendly. A handloom is an independent and
autonomous technology. Energy impacts are almost zero. The sector thus lends
itself to sustainable development policies aimed at reduction of negative impacts on
environment and ecology.

DIFFERENT FABRICS
Chanderi
Chanderi is a traditional ethnic fabric characterized by its lightweight, sheer texture and
fine luxurious feel. Chanderi fabric is produced by weaving in silk and golden Zari in the
traditional cotton yarn that results in the creation of the shimmering texture. The fabric
borrowed its name from the small town Chanderi in Madhya Pradesh where traditional
weavers practice the art of producing textured sarees in cotton and silk decorated with
fine zari work. This fabric can be classified into three types – Chanderi silk cotton, pure
silk and Chanderi cotton. Traditionally, Chanderi fabric was primarily used in weaving
Sarees and Salwar Kameez material.
Since ancient times, Chanderi fabric holds a special position in the Indian handloom
industry. Traditionally, this fabric was used to weave the nine yard drapes. The sheer
texture, fineness and glossiness of the fabric has fascinated many creative minds of the
fashion industry. Now, one can find contemporary designs like dresses, jackets, shrugs
and trench coats woven in this handloom fabric with traditional motifs. The sheer texture
of Chanderi fabric needs special care.
Brocade
Banarasi brocades are one of the finest fabrics that India has to offer. It is a specialty of
Varanasi, formerly known as Banaras, from which the fabric derives its name.
Throughout history, brocade was a fabric of luxury worn by nobility in various cultures,
from India to Korea. Brocade is a heavy fabric similar to jacquard with a raised pattern
or floral design. Traditionally the pattern was produced with gold or silver thread said to
be of such superb quality that they could be woven into fabric of pure gold and silver.
There is evidence of different textured brocades since the Rig Vedic period c. 1750-500
BCE, including fabric of gold known as HiranyaVastra. Silkora, a mixture of silk and
cotton, is a modern textile innovation of Banarasi brocade.

Banarasisarees are made in Varanasi, the city formerly known as Banaras. Sarees from
Varanasi perfectly combine the finest Indian and Persian textile designs. The silk
weaving industry in Varanasi is steeped in centuries of tradition and its hallmark is the
Banarasi brocade saree. Designs are so intricate that to weave one such saree it can
take anywhere between 14 days to six months to complete. For this reason, they are
recognised throughout India as a sign of opulence and elegance.
In the present days, Banarasi silk saris are still considered to be one of finest traditional
saris. It has actually been well known for its designing and gold as well as silver
brocade or the ‘Zari‘. The special characteristics of these saris are their designs. The
idiosyncratic features of these Banarasi silk saris include heavy working of gold, small
detailed figures, metal visual effects and compact weaving as well.
The Banarasi silk industry has been facing quite a competition from the machine made
factories who produce Sarees at a much faster rate resulting in huge losses for the
workers who make these handmade Sarees. However, in 2009, the weaver association
of Uttar Pradesh secured a copyright of sorts for the Banaras brocades as well as saris.
It stated that sari or brocade coming from outside the six identified districts (Azamgarh,
Jaunpur, Bhadohi, Mirzapur, Chandauli and Vanarasi) will not be eligible for selling
under names of Banarasi sari and silks.
Patola Sarees
The Patola Silk Sarees are one of the finest varieties of handloom silk saree from
Gujarat. Patola sarees are woven with great clarity and precision. They are well known
all over the world for their highly delicate patterns. These sarees are woven by master
weavers on a special type of silk called ‘Patola Silk’. Geometric designs with folk motifs
and flaming colors are characteristic features of Patola sarees. Each Patola saree
reflects the skill and imagination of the weaver and is exclusive by nature. Patan and
Surat are famous destinations of Patola sarees. Patan, the place in Gujarat, is well
known for its Patola saree.
Patola sarees are a double ikat woven sari, usually made from silk,made

in Patan, Gujarat, India. To create a patola sari, both the warp and weft threads are
wrapped to resist the dye according to the desired pattern of the final woven fabric. This
tying is repeated for each color that is to be included in the finished cloth. The technique
of dying both the warp and weft before weaving is called double ikat. The bundles of
thread are strategically knotted before dying. Patola saris from Patan are renowned for
their colorful diversity and geometrical style.

Designs: There are four distinct patterns which are woven primarily in Gujarat by the
salvi community. In Jain and Hindu communities, double ikat saris with entire designs of
parrots, flowers, elephants, and dancing figures are generally used. In
Muslim communities, saris with geometric designs and flower patterns are typical, being
worn mostly for weddings and other special occasions. Maharashtrian Brahmins wear
saris woven with plain, dark colored borders and body, and a bird design
called NariKunj.
Patola sarees are a treasure collection. Handloom silk saree and Khadi silk apparels
from India have their own appeal to various classes of people all over the world as they
are used by various fashion designers as their base work. It was very difficult to get hold
of an original Patola saree as they are woven by handful of weavers only and are not
abundant as South Indian silk sarees or printed silk sarees.
Patola sarees are beautiful that can be used for formal occasions even.
Apart from its beautiful look many women like to wear this saree to satisfy their status
need. Double ikkat type of Patola saree made in patan is very difficult to produce. The
procedure involves great care and skill. In double ikkat type of sarees both side of
sarees have a same look so women can wear it from any side. Women who have
allergic to colors can use these sarees made up of natural colors.
Khes of Punjab
Khes is a floor spread and bed covering that is traditionally made of cotton. The thinner
ones are used as bed coverings in winter and the thicker ones are used in place of
shawls during winters. It is a household craft and is mostly woven by the women folk for
their daughters, as an article for dowry. Khes are woven with traditional geometric
patterns on a pit loom using twill or plain weave. The main field is filled with small
repeating patterns, usually a diamond, a triangle or a polyhedron enclosed within a
square. Khes are generally woven in sets of four pairs, end to end and then stitched
together to produce the requisite width. A khes with two panels joined measures about 2
metres in length and 1.5 metres in width. The most popular colours are deep yellow,
red, black, blue and green (white being regarded as neutral).

Khadi
Khadi or Khaddar is a term for handspun and hand-woven cloth primarily made out
of cotton. The cloth is primarily woven from cotton and may also include silk, or wool,
which are all spun into yarn on a spinning wheel called a charkha. It is a versatile fabric,
cool in summer and warm in winter.
Very attractive and designer apparel are made by doing handwork on them garments
made from it. Khadi spinning is generally done by girls and women and weaving mostly
by men. During spinning of Khadi the threads are interwoven in such a manner that it
provides passage of air circulation in the fabric. Apart from this unique property, it also
provides warmth in winter season which is quite surprising factor. Khadi cotton is
required to be starched so that it does not get easily crumpled. It comes in many colors
and is not harmful to the skin as synthetic fabrics. Khadi cotton comes in plain as well
as in printed fabrics.
The most common outfit of made from Khadi cotton is the'Kurta'. Many types of apparel
are manufactured from Khadi cotton like saris, salwar suits, fabric yarns, western tops,
shirts, trousers, skirts, handkerchief, etc. It is a very durable fabric.
In Khadi silk, the ratio of Khadi and silk fabric is 50:50. This fabric requires dry cleaning.
It shrinks about 3% after the first wash. It is quite an expensive fabric. Khadi silk
provides a royal and rich look. The various types of apparels made from Khadi silk are
salwarkameez, kurta pajama, saris, dupattas, shirts, vest and jackets. Apparels like
kurta, jacket, sari blouses requires lining to be given to ensure its longetivity.
Previously Khadi was dyed in earthy color tones and was used to make traditional
garments but now designers are experimenting by dyeing Khadi with striking colors like
limegreen, violet, baby pink, turquoise blue, etc. Stylish garments like mini- skirts, halter
neck tops, racer tops, tunics, etc are made from Khadi.
Manufacturing of Khadi clothes is completely a green activity without leaving any carbon
footprint. It is woven on handloom from cotton, silk or woolen hand spun yarn and
nowhere in the process, is power used.
Khadi and village industries commission' is the Indian government body which promotes
the usage of Khadi. Khadi production and selling comes under the small scale industry
sector. This government body was created by an act which was passed by the
Parliament. Indian government conducts various exhibitions and trade fairs in India and
abroad to promote this fabric. The small scale industries engaged in manufacturing of
Khadi gets economic redemption for the raw materials and production costs by Indian
government.

Tie and Dye Work

The tie and dye textile work of Rajasthan is as popular as the state itself . It is among
the oldest traditions of the state that is still in practice. These Rajasthani fabrics are
quite colourful and come in various colour combinations. Tourists visiting Rajasthan
make it a point to buy these tie and dye fabrics, as a souvenir of their visit.
As the name suggests, the work involves tying and dyeing of fabrics. The work is
available in different materials such as cotton, silk, chiffon, georgette, satin, etc.
Rajasthan is famous for the fine form and abundant production of this famous
technique. The tribal women in the state wear odhnis, made using this technique. The
colours used in tie and dye are generally bright and contrasting.
There are various patterns of tie and dye work such as leheriya and bandhni, which are
the basic ones. The 'Leheriya' tie and dye is in a wave or ripple pattern, representing
waves of the sea, running diagonally on the cloth. Usually two colour patterns are used
in leheriya. These colours alternate each other in the form of waves. Originally, only two
colours were used for the leheriya pattern - red and yellow. Leheriya materials are
available for odhnis, turbans, saris, dress materials, etc.
Another very popular pattern of tie and dye is ‘Bandhni’ or ‘Bandhej’. This is among the
most preferred patterns of tie and dye. The patterns are usually floral or geometric, and
the base of the fabric is mostly dark coloured like any shade of red, brown, black, green
or blue.The other patterns include ‘Mothra’, which is similar to leheriya but in a checked
pattern, with opposite diagonal lines running across the cloth. The 'Shikari bandhni'
includes human and animal figures depicted in vibrant colours. The 'Ekdali bandhni' has
various geometric patterns in the form of small squares and circles, in various shades
and clusters.

Farrukhabad's Hand Printing
Farrukhabad in Uttar Pradesh is a veritable treasure house of traditional designs

ranging from the classical butis (dots) to the famous ' Tree of Life. Farrukhabad hand
printing is famous all over the world and it stands testimony to the craftsmanship of the
native artisans.
Traditional patterns dominate Farrukhabad Hand Printing. Block makers at Farrukhabad
are known for their artistry and intricate designs. The skilled workers carry on
experimentations with these traditional patterns that range from the classical butis that
are also called polka dots to the more popular “Tree of Life”. The butis are restful even
though sparkling when tinted in solid colors. Mango, ‘paisley’ as it is known in the West,
is made in a vast variety of shapes, and used in bold, medium and even fine designs.
Farrukhabad Hand Printing specialty is its myriad shapes that are used in bold, medium
and sometimes fine designs. Block printing is well known for using rich, vibrant colors.
The composition is first printed in harmonizing colors and later elaborated with delicate
details painted in with a brush. A variety of blossoms merge in this luxuriant tree.
Farrukhabad Hand Printing still enjoys the prominence and importance even during a
period when the machine based printing has captured the market. Those who attach a
lot of importance to the manual labor can understand the value of Farrukhabad Hand
Printing.

Embroidery
Embroidery is the handicraft of decorating fabric or other materials with
needle and thread or yarn. Embroidery may also incorporate other materials such
as metal strips, pearls, beads, quills, and sequins. Embroidery is most often used on
caps, hats, coats, blankets, dress shirts, denim, Embroidery is available with a wide
variety of thread or yarncolor.
The Punjab-Haryana specialty called the Phulkari (flowered work), is traditionally
worked on coarse cotton in red or blue or flossed silk. One can find the scenes from
Krishna leela and other religious subjects, depicted in the dark silk embroidered 'rumals'
of Chamba.
The practice of the famous Chikan work is now centered at Lucknow (U.P.) and Gaya
(Bihar). This is done with white cotton on a fine white muslin base using a variety of
stitches minutely worked together with knotted stitches resulting in designs with raised
surfaces. The creation of 'jali' or the net effect is one of its specialties.
Tribal Embroidery:The tribal embroidery is a class by itself with a wide range and
varied style and composition. It generally features bright colors and simple motifs. They
are often free hand. They are usually done with colored thread, and the types of
stitches, subject matter, and layout define the tribes who produced them. Among the
most colorful works is the work of the Lambadi and Banjara tribes.
Shisha Embroidery: A tribal technique, Shisha (mirror) embroidery is the process of
attaching tiny mirrors to a textile, usually in combination with other types of tribal
stitches.
Zardozi Embroidery: An Islamic technique, Zardozi is the process if attaching various
types of gold thread to a piece of fabric. It includes chain stitching gold thread, attaching
gold beads and sequins, couching on thick gold threads and twists, and sewing on a
variety of gold coils, called "purl" or "bullion". Silver and copper metals are also used to
show a variety of silver metal techniques on a thin chiffon shawl.

Carpets: Carpets are an integral part of Indian craft traditions. The tradition of carpet
weaving in India is centuries old. Carpets are generally made from wool and silk. On the
other hand floorings like mats and durries are made up of a variety of material, ranging
from wool, cotton, jute, coir, bamboo and grass. The credit of popularizing Indian
carpets in foreign markets goes to the artistic abilities and skill of the Indian carpet
weavers. In India, different states have their own carpet weaving traditions.
The important centers of carpet weaving in India are Srinagar in Kashmir, Jaipur in
Rajasthan, and Amritsar in Punjab. Amritsar has a tradition of weaving fine quality rugs
and particular designs called Mouri. Carpets produced in Agra are of the finer quality,
patterns in red, ivory, green and black background.
Kashmiri carpets are known the world over for two things - they are handmade, never
machine made, and they are always knotted, never tufted. A Kashmiri carpet is a
special carpet that by tradition origins in Kashmir (northern part of India under
Himalayas). Kashmir carpet being handmade and hand-knotted gives uniqueness and
originality to every piece. Kashmir carpet is known for beautiful and intricate designs
with a wide range of colours. The Kashmir carpet design often includes oriental floral
styles.
Linen: Over the past 30 years the end use for linen has changed dramatically.
Approximately 70% of linen production in the 1990s was for apparel textiles, whereas in
the 1970s only about 5% was used for fashion fabrics.
Linen uses range from bed and bath fabrics (tablecloths, dish towels, bed sheets, etc.),
home and commercial furnishing items (wallpaper/wall coverings, upholstery, window
treatments, etc.), apparel items (suits, dresses, skirts, shirts, etc.), to industrial products
(luggage, canvases, sewing thread, etc.). It was once the preferred yarn for hand
sewing the uppers of moccasin-style shoes (loafers), but its use has been replaced by
synthetics.
A linen handkerchief, pressed and folded to display the corners, was a standard
decoration of a well-dressed man's suit during most of the first part of the 20th century.

(ii)Handicrafts
The Indian handicrafts industry is highly labour intensive, cottage based and
decentralized industry. The industry is spread all over the country mainly in rural and
urban areas. Most of the manufacturing units are located in rural and small towns, and
there is huge market potential in all Indian cities and abroad. Handicraft industry is a
major source of income for rural communities employing over six million artisans
including a large number of women and people belonging to the weaker sections of the
society.
North Indian Art and Crafts
The famous north Indian crafts are;
Papier Mache products of Kashmir:
Kashmir has different style of paper Mache decorative goods. People use these
beautiful papier Mache items for Christmas decorations around the world.This unique
craft involves the use of paper pulp for creating beautiful artifacts painted by expert
craftsmen in lifelike images of Kingfishers, maple leaves and other motifs.The ingenious
papiermache artisans of Kashmir transform a variety of utility articles into rare art
pieces. The creation of a papier-mache object can be divided into two distinct
categories, the sakhtsazi (making the object) and the naqashi (painting the
surface).Papier Mache, today, has become highly stylized and appealing by using real
gold and silver paint and by adding intricate decorations. The designs and decorations
of the Kashmiri Papier Mache, usually in the form of flowers and birds, have a strong
Persian flavor.Among other rich designs are 'Arabesque', done in gold against a brown
or red ground to show sprays of rose blossoms in fine lines and 'Yarkand', an elaborate
design built up in spirals with gold rosettes radiating from various centers and white
flowers laid over gold scroll work. Some items like bowls and vases are lined with brass,
while on special orders boxes and other items are ornamented with gold and silver
leaves and depict beautiful landscapes and objects like a house boat, that form an
inseparable part of Kashmiri lifestyle.

Walnut wood craft of Kashmir:
Artisans make beautiful walnut wood crafts and furniture. Walnut wood crafts included
walnut elephant and other animals. Kashmir is home to some of the best walnut wood
carving done anywhere in the world. Wood carving is done on a variety of objects-
ranging from furniture (tables, chairs, writing desks, dining tables etc.) to articles of
personal use like cigarette boxes, cigar boxes, jewelry boxes, photo frames and various
other articles. Walnut is the most common wood used for carving. Kashmir is the only
part of India where the walnut tree grows. Its color, grain and sheen are unique, and the
carving and fret work that is done on this wood is of the finest quality. Walnut wood from
the root is almost black, and the grain here is much more pronounced than the wood of
the trunk, which is lighter in color. The branches have the lightest color, almost blonde,
and have no noticeable grain. The intrinsic worth of the wood from each part of the tree
differs--wood from the root being the most expensive. There are several varieties of
carving-deep carving, usually with dragon or lotus flower motifs; shallow carving, done
all over the flat surface; open or lattice work, usually depicting the Chinar motif; and
semi-carving, which is a thin panel along the rim of a surface, with perhaps a center
motif. The advantage of semi-carving is that it allows the grain of the wood to be
displayed, together with the carver's skill. Wax polishing brings out the inherent sheen of
walnut wood, and is by far the most popular finish.
Copper handicrafts of Kashmir:
The most effective and certainly the best value for the money is the copper work of
Srinagar. The coppersmith work with a hammer and chisels, and many of the present
coppersmiths are men who used once to work in silver. They also work in brass. their
designs are very quaint and bold, and they are very ready to adopt any new pattern that
may be offered to them. A large demand has arisen for the beautiful copper trays
framed as tables in carved walnut-wood, and the carpenter is now the close ally of
coppersmith.
The old city abounds with shops where objects of copper line the walls, the floor and

even the ceiling, made generally for the local market. Craftsmen can often be seen
engraving objects of household utility - samovars, bowls, plates and trays. Floral,
stylised, geometric, leaf and sometimes calligraphic motifs are engraved or embossed
on copper and occasionally silver, to cover the entire surface with intricate designs
which are then oxidised, so as to stand out better from the background.
This Kashmiri copper kettle "samovars"(tea kettle of Russian origin) is engraved with
designs of the leaves of Chinar (maple) trees, native to Kashmir. The detailed designs
in traditional Kashmiri style, reflect the craftsmanship of the skilled traditional
coppersmiths of Kashmir. Drinking water stored in a copper vessel, is believed to be
beneficial for one's health. Combining functionality with aesthetic charm, this Kashmiri
copper kettle is sure to enhance the ambience of your dining table.
Glass Handicrafts
Firozabad is city known for its glass handicrafts like chandeliers, Bangles, vases, candle
stands and other decorative glass products.
Glassware is the main industry in Firozabad, about 240 km from Taj city Agra, and
almost 70 percent of the country's small-scale glass production is concentrated in this
district in Uttar Pradesh. Its glass lamps, in particular, are very popular and are mostly
exported.
Agra is known for marble handicrafts, leather shoes and chappals. Kanpur is known for
its Leather handicrafts. Bareli is known for wooden handicrafts and furniture products.
Lucknow is known for cotton suits and kurta-pajama. Banaras
is known for BanarasiSarees, other than these crafts the hand embroidery on dresses is
done in all over Uttarpradesh.

East Indian Handicrafts:

East India is famous for its various Indian handicraft products including tribal art and
crafts. Some of these states of India located at the top of east India are known as seven
sisters. Bamboo craft is famous in all over East India, i.e. Assam, West Bengal, Orissa,
Manipur. Tribes of East India have been making eco-friendly crafts by natural straws,
fibers, wood, metal, stone and other materials.
The stone pottery is also a unique technique of making pottery products. In this
technique the serpentinite stone is used to make beautiful brown and black ceramic
pottery products. First they collect the stone from the mountains and crush them into
pieces and crush it to make powder to make the clay, after that they mold that clay into
beautiful pottery products like mug, kettle, and other utensils. Mizoram is known for its
natural straws crafts and serpentinite stone pottery. The straws craft is also the unique
art and craft technique of making goods out of the natural fibers and straws. These
hand knitted products including natural straws mat, straw hat, ecofriendly bags, natural
straws handbags, wood fiber lamp, lamp made of wooden thin stems, natural fiber
basket, straws box and other useful products.
Tribal jewelry made of wood, metals, stones and gems and other natural materials are
also the center of attractions.
Orissa and Bihar states are known for its Madhubani paintings, applique art and crafts
and village paper Mache products. This paper Mache is different from the paper Mache
of Kashmir. These are little rough and decorated by hand paintings, folk art designs and
motives on them.

West Indian Handicrafts:

Three major states located at west India, Rajasthan, Gujarat and Maharashtra. These
states are also known for their different handicrafts products.
Rajasthan is well known for its miniature paintings, furniture, metal crafts, marble and
other stone crafts, wooden decorative items, Rajasthani dresses, gems and stone
jewelry of Rajasthan, lakh jewelry, and puppets.
Gujarat state is the largest states of cotton production, so it is known for cotton
products. Cotton home furnishing and decorated products. Hand embroidered cotton
clothes and wall hangings of Gujarat are very famous.
Maharashtra is also known for various handicrafts products, leather crafts specially
kolhapuri chappals, handmade leather sandals, textile industry, and warli paintings.
South Indian Handicrafts:
Hyderabad is famous for its pearl jewelry; the history told us the interest of Mughals in
jewelry was very much. So the pearl and diamonds were imported from Australia,
USSR, Belgium, China, Europe and other part of world. The tradition has grown and
took the form of business, and the Hyderabad city become the pearl and diamond
jewelry city. The handmade lakh jewelry is also a big attraction of Hyderabad. Coconut
tree products, shell handicrafts; coconut handicrafts are also famous in south India.
Thus, the Handicraft sector is highly creative sector and produces large variety of crafts
products. In India the production of craft products are done on both large and small
scale. Because of low capital investment people can start their business on small scale.
Through this flexibility the demand and supply can be managed.
Though Indian Handicraft industry is considered a cottage industry, but it has evolved
as one of the major revenue generator over the years. There has been consistent
growth of 15% over few years and the industry has evolved as one of the major
contributor for export and foreign revenue generation. There is huge demand for the
Indian Handicraft products in both national and international market. To match the
demand and supply with quality, there is need to have greater technological support and
innovativeness with the uniqueness in industry.

Cane Crafts
Extensive use of wood over the ages for furniture and other products has challenged
the environment more than ever before. The population of trees and forests is ever
receding. This increasing need for wood has been beautifully supplemented by cane
and bamboo. These eco-friendly products are light in weight and have their own style
and elegance. These products have a high life with minimum maintenance and are at
par with wood, if not better. Strips of bamboo and various types of canes are extensively
used to manufacture different utility and decorative items. Mats, lamp shades, trays,
baskets are weaved and knitted by the skilled hands of the artisans. Cane and bamboo
can also be converted into strong and unique furniture, which are very popular now.
Cane and bamboo are the two most commonly-used materials in daily life in Assam.
Products ranging from household implements to construction of dwelling houses to
weaving accessories to musical instruments are made in bamboo. No mechanical
devices are used in the craft, which is mainly a household industry. Besides basket-
weaving, bamboo is used chiefly in the construction of houses and fencing. The craft
traditionally provides part-time employment to cultivators in the lean season, although,
increasingly, full-time artisans engaged in commercial activity can be found now.
Bamboo products are in evidence everywhere in Assam. There are innumerable types
and shapes of the bamboo basket, varying with the use to which they are put. The men
of the household usually weave the bamboo baskets. Each district has its own
distinctive style.
In general, conical baskets are used as carrying baskets and square or round bottomed
ones are used for storage. An example is the Assamese bamboo basket from Silchar.
This has a square base that is capped inwards so that the corners of the square act as
a support and it has a wide mouth.
Tribals of Baroda make baskets, masks, flutes. JodijaPahwai special double flute, is
made in Banni and Kutch. Tribals in Dahod and Dangs area are famous for their
baskets, trays, boxes, mats and musical instruments. In a majority of the villages in
Gujarat traditional bamboo work provides articles required by the agrarian community.
The western part of Gujarat is engaged in the making of cane and bamboo products.
Ambapada is famous for decorative articles made from bamboo roots.

Bamboo craft is an age old craft practiced extensively due to its great qualities. Haryana
mudas or the low stools are made from the locally available munj grass. These stools
are in vogue these days as cane and bamboo products have found a place in almost all
households and are in great demand. Craftsmen have given a modern look with the use
of jute strings for designing. Furniture, decoration items etc are other items made in
Haryana.
Pottery
Like all other handicrafts and crafts, the tradition of pottery making in India is very old.
The ancient pottery of a country speaks volumes about its civilization. Pottery is one of
those important mediums through which men have expressed their emotions. For
thousands of years pottery art has been one of the most beautiful forms of expression.
A piece of pottery has a visual message in its shape and colour.
Pottery is the most sensual of all arts. In India, we have had a great tradition of pottery
making. In fact, being an agricultural country, pots for storage of water and grains were
in demand. The real beginning of Indian pottery began with the Indus Valley Civilization
and the art of shaping and baking clay articles as pottery, earthenware and porcelain
has continued through the ages. The advent of potter’s wheel gave man the task of
making beautifully shaped pots for his personal use. The movement of wheel and the
pressure exerted by the hands on clay gives new shapes and forms.
Potteries can be both handmade and wheel-made, which is practised all over India.
There are mainly two types of pottery found in the Indian villages namely the unglazed
pottery and glazed pottery. There are three different styles in unglazed pottery namely
the paper-thin, scrafito and highly polished. Black pottery is another famous form of
unglazed pottery in Indian villages and it resembles the Harappan pottery style.

In the paper thin pottery, the biscuit coloured pottery is decorated with incised patterns.
Very fine paper-thin pottery is produced in the villages of Kutch, Kanpur and Alwar in
India. Alwar and Kanpur are famous for making thin pottery with incised designs.
Glazed pottery is another ancient form of pottery in Indian villages. The inception of
glazed pottery in India dates back to the advent of Arab influence. There are many
villages in India that are famous for producing extraordinary pottery products. The
villages in the places like Delhi, Amritsar, Jaipur, Khurja, Chunar and Rampur in Uttar
Pradesh and Karigari in Tamil Nadu are famous for making glazed pottery with white
background and blue and green patterns. Blue pottery is another common form of
pottery in Indian villages.
Apart from the unglazed and glazed pottery, there are also a few other types of pottery
produced in the villages of India. The major types of pottery in Indian villages include
the common earthenware, Kullar (cup-like container), lamps for Diwali, toys for
Dussehera, pots for seedling at MakarSankranti, painted pots for marriages, etc.
Karigari pottery is a major type of pottery in Indian villages that is made with special
attention by putting intricate designs on it. Ashtrays, flower vases, tea sets, paper
weights, decorative animal figures, etc. are some of the examples of Karigari pottery.
Pottery in Indian villages can be classified in religious aspect as well.
Terracotta is probably the most famous form of pottery in Indian villages. The villages of
West Bengal, Bihar and Gujarat are best known for terracotta works. The villages of
Tamil Nadu are also quite famous for the terracotta figures of the Aiyanar Deity. The
figures are huge and they are found standing guard at the entrances of villages
protecting the insiders from evil spirits.
The villages of Jammu and Kashmir are famous for producing quality earthenware of
ordinary clay, with a glaze-like surface. The people in Sunderban area make Dakshinirai
pots, which are round with an edging running along the mouth signifying a crown. The
people also worship these pots as the God, who will protect them from tigers.
The villages of Gujarat are famous for making items using a mixture of white and black
pottery. The villagers make designs by using dots, zigzag stripes and diagonals and the
floral and animal patterns are occasionally used. Villages in Kutch and Saurashtra in
Gujarat are quite famous for their beautiful earthenware. Kutch is famous for pots,
terracotta horses and elephants. On the other hand, earthenware made in the villages
of Goa has a charm of its own. Thus Indians are expert in moulding clay with their
hands to form various things of daily utility, toys and deities of worship since the ancient
period.

Clay Toys
The state of Clay West Bengal in India has a rich tradition of making clay toys for a very
long time. These clay toys have a distinct place among other many art forms. This craft
of pottery is practiced by people of a particular village in west Bengal and some places
like Goalpara in Assam. During “ShyamaChak” festival, girls and potters mold the
images of “Shyama” or Lord Krishna
In West Bengal other than making clay images of Gods and Goddess, they make
images of temples, huts, domestic animals, peasants, dancing figures that are brightly
colored, etc.
Toys from Krishna Nagar in Nadia are the best and always stand apart among other
clay toys. The people of this village make toys from the clay taken from the banks of the
river Churni and are mould them into desired figurines with utmost care and attention.
The toys are mostly based on village scenes and images of deities.
Bihar is also famous for clay moulding and the clay toys are all of abstract forms like
herds of elephants or a group of dancers surrounding a particular person, etc. which are
remarkably beautiful. Kondapalli in Andhra Pradesh makes some of the usual dolls and
toys out of a combination of cow dung, sawdust and clay and coat them with glossy
colours.

Carving
Wooden Carvings
Indian wooden crafts are widely liked in national and international market. India has
many industries of wooden crafts in different states. A High number of woods are
available in India for wood carving like white wood, Cedar, Shisham, Rose wood,
Ebony wood, Walnut and Mango wood, etc. These kinds of wood are used for carving
statue, sculpture, furniture, wooden toys, decorative items, utility items, gift
items, wooden elephant and other home interior decoration structures.
Stone Carvings
The art of stone carving developed in India, a little later when compared to
woodcarving. India has a huge resource of different variety of stones and our skilled
craftsmen impart life into them. The Indian craftsman’s mastery over stones is best
revealed in the architecture and sculptures found in Khajuraho temples. The intricate
carvings found at Sanchi are among the finest found anywhere in the world. Gaya, a
pilgrim site for the Buddhists also has an ancient tradition of stone carving.
Varanasi is an important centre for stone carving works. Here communities of people
called the Raidas do it. Around Varanasi, Hamirpur, TehriGarhwal and Bageshwar
are famous for statue works whereas Banda is known for agate stone works.
Agra in Uttar Pradesh is famous for its marble stone works. Many pieces like lattice
windows, mirror frames, pendants and filigree works are carved here. Mostly
geometrical and floral patterns are worked on using coloured stones and semi precious
ones.
Jaipur is one of the most important centers where a large community of stone carvers
carves deities in marble. Large commemorative stones are a common sight in
Rajasthan as well as in Gujarat.Orissa also has a tradition of stone carving. Now-a-days
soft stones are used for carving small souvenir items, which are meant for sales to the
tourists.
Ivory Carvings
Ivory carving is one of the most ancient crafts of India. Ivory is a precious material
and a difficult one to carve on. Export of these carved items is continued since
Roman times. The important centers for ivory carving are Trivandrum in kerela,
Mysore and Bangalore in Karnataka, Delhi, Jaipur and Jodhpur in Rajasthan,
Amritsar in Punjab.
Kerala specializes in carving of god and goddesses images in ivory. The carvings are
in the round and based on different styles of temple sculptures of the area.

In North India ivory carving developed during the reign of the Mughals. Delhi and
Lucknow are important centers noted for their floral motifs; geometrical patterns
carved in low relief or worked in fine jali work. Small items like caskets, pen cases,
fine lattice work boxes are some specialties.
Rajasthan and Gujarat are important centers for ivory bangles for women. The lathe
work bangles are lacquered in red and are given to women during their marriage.
Amritsar is famous for table lamps, bracelets, chess sets in ivory.
(iii)Jewellery
The gems and jewellery industry occupies an important position in the Indian economy
scenario. It is a leading foreign exchange earner, as well as one of the fastest growing
industries in the country. The two major segments of the sector in India are gold and
diamond jewellery. Gold jewellery forms around 80 per cent of the Indian jewellery
market, with the balance comprising studded jewellery that includes diamond and other
precious and semi-precious stones. India has the required skill, innovation and cheap
labor to excel in this field.
Some of the various types of jewellery are as follows:
Antique jewellery: Jewellery that has substantial history attached to it, or on simpler
terms, very old jewellery is known as antique jewelry. It usually has a rough and dull
look, but tends to retain an old charm.In India there are different forms of antique
jewellery like kundan, minakari, filigree, jadau and many. These antique jewels were
also studded with precious stones like emeralds, rubies and jade, thus making the
jewels very unique and expensive. It is interesting to note that, today apart from Indians,
people from other countries like the UK and the US also find such jewellery charming
and buy them.
Filigree Jewellery: Indian Filigree Jewellery is a very much unique style of jewellery. In
India it is known as “Tarkashi”. It is popular in the states of Orissa and Andhra Pradesh
where the same old style of making is followed.
Filigree work is done with pure silver or gold and involves many stages. Pure silver or
gold is made into small fine wires by hammering on an anvil made of steel or iron or
passed through wire drawing machines .These two wires are again heated and wound
on a rotating wheel and again flattened to make it into a single wire. This wire is then
made into different shapes by bending it as per requirements. Various types of filigree
jewellery like pendants, earrings, hairpins, brooches, etc. are today available in the
market.

Kundan jewellery: The art of Kundan jewellery making is one of the oldest forms of
jewellery making called “Kundankari”. Here the jewels are made from 24 carat gold,
embedded with stones on one side and minakari work on the reverse side to get
beautiful surfaces on both the sides. Both gold and silver is used for this work. The
whole skill set is setting stones and gems into gold which is solid in nature.
There are huge varieties of Kundan jewellery like earrings, armlets, bracelets, bangles,
necklaces, chocker sets, nose rings, etc. Each piece of Kundan jewellery is handcrafted
and is distinct from one another.
Stone Jewellery: In India, Jewellery which is studded with different gems is quite
popular. These stone jewelleries are worn according to the individual's astrological chart
and ruling of planet. Certain gem stones are believed to have extraordinary healing
power. Some stone jewellery is believed to be protective against poisonous substances
and vanish any evil spirits that hover around people and places.
Jadau Jewellery: Jadau is a very traditional form of jewelry. Jadau jewelry is jewelry in
which semi precious, gems, precious stones, beads and crystals are embellished.
Jadau jewels are made by gold which is made flexible by melting it. Once the gold is
semi solid, stones are fixed on it meticulously. After the gold cools, the stones and other
gems get fixed on it automatically without the use of any adhesive.
Making jadau jewelry involves a group of craftsmen like Chiteria’s who make the basic
design, Ghaaria’s who make the engravings and make the holes, Enameller’s who do
the minakari work and the goldsmith who takes care of the kundan work. All these
processes are done with great care and attention by setting the stone or enamel on a
silver foil and then finishing it with pure gold. Now-a-days, Jadau work is not only done
on jewelry, but also on showpieces and jewelry boxes.
The main attraction of Jadau jewels are that a central uncut diamond called ‘vilandi’ or
‘polki’ are placed and minakari or any other sort of art work is done to beautify it. Jadau
jewels are crafted with greatest care and attention.
Meenakari Jewellery: In Meenakari jewelry, precious stones are set and then
enameled with gold. The art requires higher skill and its intricacy calls for application of
technical mindset. In Meenakari, the piece of metal on which the work is to be done, is
fixed on a lac stick. Designs of flowers, birds, fish etc are engraved on it. Silver and gold
are used for the base of Meenakari. Choice of colors, in case of silver, has to be green,
yellow or blue, as these are the colors which stick with it. As for gold, all the colors can
be applied to it and this is also the reason why the metal is preferred for Meenakari
jewellery.

(iv)Dhoop/Aggarbatti
Agarbatti industry in India is a labour intensive cottage industry. Karnataka State is the
leading producer with Mysore and Bangalore cities being the focal centres. Nearly 1000
units reportedly exist in the State of Karnataka . Moreover, it is an export-oriented
industry.
The incense stick industry in India has promoted social entrepreneurship in the rural
and semi urban areas as more people are coming forward to start their enterprises.
Some reputed Indian corporate have also taken the lead in promoting this trend by
training rural women in bamboo cutting, incense rolling, raw incense sorting, perfuming
and packaging of incense sticks.
The basic ingredients are bamboo sticks, paste (generally made of charcoal dust and
joss/jiggit/gum/tabu powder-an adhesive made from the bark of litseaglutinosa and
other trees), and the perfume ingredients - which would be a masala (mixed) powder of
ground ingredients. The bamboo stick is rolled into the masala, or is sometimes rolled
into a perfume liquid consisting of synthetic ingredients. Stick machines are sometimes
used, which coat the sticks with paste and perfume.
Agarbattis are available in different colours and aromas. The burning time of an
agarbatti varies from 15 minutes to 3 hours depending upon the quality and size. Some
of the popular fragrances that have captured the imagination of consumers both in India
and abroad include Mogra, Dhoop, Saffron, Sandal, Kasturi, Rose, Nag Champa ,
Jasmine, Lavender , Champa , Lily, Cherry, Lemon, Orange, Spices. It is also available
in 3-in-1 and 5-in-1 packs giving the consumer a choice of multiple fragrances in a
single pack. These agarbattis are available in innovative 'Fragrance-Locked' packaging.
India has a leadership position in agarbatti production and fulfils more than half of the
world's incense sticks requirements. India exports Agarbatti to nearly 90 countries.
Export earnings have crossed Rs. 400 crore mark while the domestic market is
expected to be nearly 2000 crore. Every year more than 1000 billion sticks are
produced and the market is growing at a rate of 7% per year.
The incense stick market faces a sudden upsurge in demand during the festive season.
Demand from both domestic and international sectors peaks up during festivals like
Dussehra and Diwali. The market for incense sticks is very vast and the demand for
these incense sticks is high even in the far-flung rural areas. The incense industry is
driven by factors other than commerce like tradition, superstition and religion.
For most Indians, incense remains an important part of the daily puja ritual, which is a
religious offering performed by all Hindus to their deities, especially during the beginning
of a new venture, or to commemorate some special occasion. The aspect of the ritual
known as dhupa involves the offering of incense before the picture of a deity, as a token

of respect. The smoke is believed to ward off demons and cleanse the air around. They
are fragmented.
(v)Spices and Herbs

India produces about 2.5 million tonnes of spices each year. It exports about
2,00,000tonnes of spices related products. Indian spices are widely used for their
medicinal, preservative and seasoning effects. The Indian spices not only add colour,
taste and smell to food, they do take care of health too.
Asafoetida: A spices from Indian peninsula is a dried gum extracted from the taproot of
an herb called Ferula. It is commonly known as Hing. It gives very smooth flavour when
added to cooked dishes. There are two main varieties; Hing Kabuli Sufaid (creamy
white) and HingLal (red).
It is used to flavour a broad collection of dishes. It is popular as a garlic substitute,
giving amazing flavour to a lot of foods. The wide use of asafoetida in cooking is
because of its digestive aid behavior and a condiment.
Asafoetida has a wide range of application in the field of medicine. It has antibiotic
properties due to which it is used to keep small children healthy. It helps in producing
antiviral drugs to kill viruses like swine flu virus. Asafoetida is also used to treat
indigestion by smudging it on the abdomen with a small amount of alcohol or water.
Clove: Clove is commonly known as laung or lavanga. Cloves can be used easily to
overwhelm a dish. Sucking in two full cloves without chewing or swallowing them helps
to control the desire for consuming alcohol. Cloves can be used to take care of
indigestion, diarrhoea and ringworm.
A small drop of clove oil in water will prevent vomiting and ease nausea. Clove is also
advised for digestive complaints and for toothache.
Coriander: Coriander which is commonly known as Dhania is largely grown in
Rajasthan, Gujarat, Tamil Nadu, Madhya Pradesh. It is an important spice crop which
has a prime position as a flavouring agent in foods. Grounded coriander seeds are an
important constituent of curry powder and garam masala. In Ayurvedic medicine,
coriander is used as a digestive support. Coriander is also believed to be good for
eyesight. Taken in as a warm decoction it helps to determine urinary tract infections
quickly.
Cumin: Cumin, commonly known as Jeera is a sweet-smelling spice with a distinctive
bitter flavour and physically powerful, warm fragrance due to its plentiful oil content.
Cumin seeds are used as spice for their characteristic flavour and smell. It helps to

include warm feeling to cooking creating it a staple in certain stew and soups as well as
curries.
Cumin, along with ghee and a crowd of other spices, plays a very important role in
Ayurvedic medicinal traditions. Cumin extract is more effective at reducing blood
glucose. Oral doses of cumin on consecutive days improve the immune system.
Mint: Mint is commonly known as Pudina. It is an energizing herb that can add
enthusiasm and flavourto many dishes. There are a lot of types of mint from peppermint
to ginger mint. Mint is frequently added to drinks to create an appealing flavour and for
its fitness benefits. Mint, particularly peppermint or spearmint is used in tea because of
its capability to ease upset stomach.
Mint is one amongst the herbs that has it all. It grows like a wild plant but is extremely
safe to use and is a brilliant remedy for reducing symptoms linked to digestion and it
tastes really good while it going down the throat. Mint can also be used as a hunger
stimulant.
Turmeric: Turmeric is commonly known as Haldi. It is added at great levels to pickles,
sauces, relishes, dry mixes due to its unique convention as a spice. It should be stored
in sealed containers and away from sunlight. It is a key ingredient in curry powder and is
witnessed heavily in Asian cuisines. Because it imparts a vibrant yellow colour to food it
is cooked with, it is frequently used to colour as well as flavour dishes.
To cure a lot of health disorders like liver problems, digestive disorders, and a cure for
skin disease and wound curing, turmeric is used in curative medicine as an
inflammatory for a long period. These days there are a lot of herbal products in the
marketplace in which the key herb used is turmeric.
Black Pepper: Black Pepper is the fruit of the black pepper plant from
the Piperaceae family and is used as both a spice and a medicine. It is one of the most
widely traded spices in the world. When dried, is then ground into a powder to be put on
food to add flavor and spice. Because of its antibacterial properties, pepper is also used
to preserve food. It is a rich source of manganese, iron, potassium, vitamin-C, vitamin
K, and dietary fiber. Black pepper is also a very good anti-inflammatory agent.

(vi)Baking
Cake: Cake is a form of sweet dessert that is typically baked. In its oldest forms, cakes
were modifications of breads but now cover a wide range of preparations that can be
simple or elaborate and share features with other desserts such
as pastries, meringues, custards and pies. Cake is often served as a celebratory dish
on ceremonial occasions, for example weddings, anniversaries, and birthdays. Cakes
are broadly divided into various categories; Yeast cakes, Cheese cakes, Sponge cakes,
etc. Now-a-days also there are various special purpose cakes for wedding, birthdays,
and festivals.
Cookies: a cookie is a small, flat, sweet baked treat, usually
containing flour, eggs, sugar, and either butter, cooking oil or another oil or fat, and
often including ingredients such as raisins, oats, chocolate chips or nuts. Cookies may
be mass-produced, made in small bakeries or home-made. Cookies are often served
with beverages such as milk, coffee or tea.
However baking is no longer a complicated procedure; it has proven to be a source of
income especially for housewives today. It generates confidence and financial
independence leading to women empowerment.
(vii)Pickling
Pickling is the process of preserving or expanding the lifespan of food by either
anaerobic fermentation in brine or immersion in vinegar. The resulting food is called
a pickle. The pickling procedure will typically affect the food's texture and flavor. Indian
pickles are often made into fresh relish and chutney, which provides additional flavours
to food. There is a wide variety of pickles in India; some few are as follows:
Amla Pickle: Amla Pickle or Indian gooseberry pickle is a popular pickle in South
Asia and India. This spicy pickle is also available commercially. Gooseberries are a
source of vitamin C, vitamin A, calcium and phosphorus. It is prepared by pressure
cooking gooseberries. Then, mustard seeds are tempered in oil and the gooseberries
and other ingredients are added.
Mixed Pickle: Assorted pickle is a popular mixed pickle in Indian cuisine. This pickle is
also available commercially. It is prepared by boiling a marinade and then cooking
vegetables in the marinade.Pachranga Achar', also a generic name for the category, is
popular brand of assorted or mixed pickles in North India.
Raw mango and chickpea pickle: Raw mango and chickpea pickle is a very popular
pickle in India. This pickle is also available commercially. It is prepared by marinating
grated raw mango with salt and turmeric powder for one day and mixing it with soaked
chickpea and other ingredients, then letting it sit for four days.

(viii)Jam,Jellies,Squashes
Jam consists of fruit that's crushed or chopped and cooked with sugar (and sometimes
pectin and an acid) until the pieces of fruit are soft and lose their shape. As the mixture
cooks, water evaporates and it thickens to a spreadable consistency, though it still may
have some pieces of fruit. Sugar acts as the primary preservative. Jams are usually
made from pulp and juice of one fruit, rather than a combination of several fruits.Good
jam has a soft even consistency without distinct pieces of fruit, a bright color, a good
fruit flavor and a semi-jellied texture that is easy to spread but has no free liquid.
Jelly is strained for a gem-like clarity without fruit solids. To get that bright, crystal-clear
consistency, most fruits are crushed and cooked to extract their juice. The mixture is
strained through a jelly bag, which is made of a fine mesh fabric that ensures that no
fruit particles slip through. After straining, the juice is boiled rapidly with sugar (and
sometimes pectin) so that when it sets, it holds its shape. Jelly is typically firmer than
jam.
Squash (also called cordial) is non-alcoholic concentrated syrup used
in beverage making. It is usually fruit-flavoured, made from fruit juice, water,
and sugar or a sugar substitute. Modern squashes may also contain food colouring and
additional flavouring. Some traditional squashes contain herbal extracts, most
notably elderflower and ginger.
Squash is mixed with a certain amount of water or carbonated water before drinking. As
a drink mixer, it may be combined with an alcoholic beverage to prepare a cocktail.
Citrus fruits (particularly orange, lime and lemon) or a blend of fruits and berries are
commonly used as the base of squash. Popular blends are apple with blackcurrant,
raspberry with pomegranate, and orange or peach with mango.

CHAPTER 5:SWOT Analysis
SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
It involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favourable and unfavourable to achieve that
objective. The strengths and weaknesses are internal to the organization whereas the
opportunities and threats are presented by the external environment to the organization.
Strengths
A small business can be started at a very low cost.

Good customer relation: Small business proprietors tend to be intimate with
their customers and clients which results in greater accountability and maturity.
They usually offer a more personalized approach to interacting with clients.
Customers who are treated like family are more likely to return to that business in
the future.
Independence is another advantage of owning a small business. One survey of
small business owners showed that 38% of those who left their jobs at other
companies said their main reason for leaving was that they wanted to be their
own bosses. Freedom to operate independently is a reward for small business
owners. In addition, many people desire to make their own decisions, take their
own risks, and reap the rewards of their efforts.
Cater to customer needs A small firm has the ability to modify its products or
services in response to unique customer needs. The average entrepreneur or
manager of a small business knows his customer base far better than one in a
large company. If a modification in the products or services offered or change in
the hours of operation would better serve the customers, it is possible for a small
firm to make changes.
Another strength is, the people involved – the entrepreneur, any partners,
advisers, employees, mostly being family members – have a passionate, almost
compulsive, desire to succeed. This makes them work harder and better.
Gestation period: Cottage industry being a small scale unit has less gestation
period, which means the period after which the returns on investment starts. It is
usually from 2-5 years.

Weakness
One of the largest weaknesses for small business owners is to raise finance.
Many business owners invest their own money at the start of a business or when
the business falls upon hard times because institutional lenders like banks and
government financial corporations are generally reluctant to advance money to
these small units.
Other weakness is to obtain the permission and license from, the Industrial
Development of the state, local bodies etc. But despite the policy of Government,
petty officials are often unhelpful. A lot of time and energy is wasted in
persuading these officials to perform their duties.
This industry also faces the acute problem of marketing their products. It is due
to its small scale of production, lack of standardization of products, inadequate
market knowledge, competition from technically more efficient units, deficient
demand, etc.
These units also have to face problems of raw materials like availability of
inadequate quantity, poor quality and even supply of raw material is not on
regular basis.The result is taking whatever is available, of whatever quality and at
high prices. All these factors adversely affect the functioning of these units.
The methods of production which these units use are old and inefficient. The
result is low productivity, and high costs. The producers because of lack of
information know very little about modern technologies and training opportunities
which concerns them.
Opportunities
Government is providing many opportunities for small business. Government has

formed many policies and financial institutions for helping small units like-
 Industrial policy resolution
 Import Export Policy 1994-97
 The Pricing Policy
 The Textile Policy
 Policy for Development of handloom Industry
 Policy for Khadi and Village Industries
ABID HUSSAIN COMMITTEE : An expert committee with 11 members and

headed by AbidHussain was constituted on December 1995 by the Government
to study the status of Small Scale Enterprises and to suggest measures by which
these units could grow and remain competitive in the changing economic
environment. Major recommendations include:

 Specialized commercial bank branches for SSI’s for easy credit facilities
 Reduction of credit cost of SSI’s
 Setting up of SSI clusters with modern infrastructure facilities
There are many Government and Non Government Financial Institutions who
provide financial assistance to MSME’s like:
a. SIDBI – Small Industries Development Bank of India
b. SIDO – Small Industries Development Organization
c. SISI’s – Small Industries Service Institutes
d. NSIC – National Small Industries Corporation
e. NIESBUD – The National Institute for Entrepreneurship and Small Business
Development
f. NABARD – National Bank for Agriculture and Rural Development
In the rural areas, the Industrial Training Centers have been set up for the proper
education and training of cottage workers and artisans. Moreover, the
Government has made arrangement for the supply of good raw materials to the
cottage and small industries. In recent years, the Government has provided
technical training to the artisans and craftsmen.
The Indian Government has set up the Cottage Industries Board, the Khadi and
village Industries Board, Inventions Promotions Board, Small Industries
Development Board etc. for the development of small scale industries. The
Boards are endowed with adequate finance and large power in their hands.
The Indian Government has also made provision for cheap electricity and small
machine tools in order to raise the labor productivity of small scale cottage
industries. Suitable steps have been taken for effective marketing
organization.The Government has started sales depot in all important cities of the
country and made arrangements for the exhibition of products of small and
cottage industries.
In accordance with the suggestion of the Planning Commission, the Government
of India has made provision for the reservation of spheres of production of
cottage and small scale industries. The Government of India has also set up the
Regional Industries of Technology and the Small Scale Industries Service
Institute for improving the management of cottage, industries and also for
rendering technical advice to such industries. The National Small Industries
Corporation was set up in 1956 which established close link with the Government
for the supply of machines and equipment to small industries on hire purchase
scheme.
All these schemes provided by the Government will make these small scale
industries a real source of strength to the entire economy of the country.

Threats
Slow Payment: large corporations continue to pay slowly for small businesses’
products and services purchased, they bargain harder and demand more concessions
from powerless small businesses.
New costs, taxes and compliance: As social causes like sustainability, diversity,
healthcare and fair taxation are being legislated by governments and lobbied into
favourable terms for corporations, small businesses are getting choked. Now, the new
costs, taxes and compliance rules are sapping the will of owners to believe that they
should risk, invest and remain confident in their businesses.
CHAPTER 6: Pricing Strategy
Cottage industry involves small units of various types of artistic and craft products
produced by skilled labour showcasing different flavours of India.
Two major sectors of cottage industries and their pricing is as under:
Handicrafts being very exclusive and royal, target only higher class of people who
demand and can afford such products. Handicraft units may adopt strategies like one
price strategy or skimming price strategy as customers who value such products are
also ready to pay high prices for it. However, it may vary according to the market,
goodwill of the firm and the quality of the products.
Also huge and elaborate handicrafts may have higher prices as their cost of production
may also be high. But simple products like pots, clay toys, or cane furniture may cost
less.
Handloom is another well known aspect of cottage industry. India has a huge variety of
textiles all over. For example; muslin of Chanderi, silk brocades of Varanasi, bandhani
of Gujarat, etc. These cloths being hand made by skilled workers with a lot of
continuous hard work are sold at high prices. However, also similar kind of duplicate
products and mix products are made and sold at low prices in local markets. But, people
who value pure products are ready to buy them at high prices. Thus many units adopt
one price, skimming price strategy also the units may change their pricing policies
depending upon the external factors.

CHAPTER 7:Export
Export of Handicrafts
In India the handicraft sector is highly creative sector and produces large variety of
crafts products. In India the production of craft products are done on both large and
small scale. Because of low capital investment people can start their business on small
scale. Through this flexibility the demand and supply can be managed. Though Indian
Handicraft industry is considered a cottage industry, but it has evolved as one of the
major revenue generator over the years. There has been consistent growth of 15% over
few years and the industry has evolved as one of the major contributor for export and
foreign revenue generation.
There is huge demand for the Indian Handicraft products in both national and
international market. To match the demand and supply with quality, there is need to
have greater technological support and innovativeness with the uniqueness in industry.
KEY MARKETS AND EXPORT DESTINATIONS

 In 2014–15, Indian handicrafts exports stood at US$ 4.5 billion, up approximately
15.4 per cent over the previous year’s exports. Exports of Indian handicrafts have
increased at around 16.4 per cent since 2008–09.
 Indian handicrafts are exported across geographies, with the top 10 destinations
being the US, the UK, the UAE, Germany, France, Latin American countries
(LAC), Italy, the Netherlands, Canada and Australia.
 The US alone accounted for approximately 26.1 per cent of India’s total
handicraft exports in 2014–15. It was followed by the EU, which accounted for
approximately 24.7 per cent.
 The UAE was the third-largest importer of Indian handicrafts, with imports worth
US$ 410 million in 2014–15.
Major Importers of Indian Handicraft Products (2004-05) (Source – Export Promotion

Council for Handicrafts)

Export of Handloom
India’s Textile Industry is the country’s second largest industry in terms of employment
potential. Handloom sector plays a very important role in the country’s economy.
Handloom industry is the largest cottage industry in the country with 23.77 lakh looms.
The major handloom export centres are Karur, Panipat, Varanasi & Kannur where
handloom products like Bed linen, Table linen, Kitchen linen, Toilet linen, Floor
coverings, embroidered textile materials, curtains etc. are produced for export markets.
The Handloom industry mainly exports fabrics, bed linen, table linen, toilet and kitchen
linen, towels, curtains, cushions and pads, tapestries and upholstery’s, carpets, floor
coverings, etc. The major importing countries of Handloom products from India are
USA, UK, Germany, Italy, France, Japan, Saudi Arabia, Australia, Netherland and UAE.
Handloom Export Promotion Council (HEPC) is a nodal agency constituted under “The
Ministry of Textiles, Government of India” to promote exports of all handloom products
like fabrics, home furnishings, carpets, floor coverings, etc.
Table indicating export of handloom products to top 10 countries during FYs 2014-15 &
2013-14
2013-14 2014-15
S.NO Country % growth
Value INR Cr. Value INR Cr.
1 USA 713.21 658.95 -7.61
2 UK 157.59 181.19 14.98
3 GERMANY 151.00 155.12 2.73
4 ITALY 93.33 96.04 2.90
5 FRANCE 86.49 90.71 4.88
6 AUSTRALIA 71.85 88.87 23.69
7 JAPAN 81.61 70.09 -14.12
8 NETHERLAND 65.52 62.05 -5.30
9 SWEDEN 42.82 53.94 25.99
10 SPAIN 44.78 50.60 13.00
Total 1508.21 1507.57 -0.04
The above table indicates the export of handloom products to top 10 countries during
the year 2013-14 and 2014-15. It may be seen from the above table that among the top
10 export destinations of handloom products during FY 2014-15, USA, Japan and

Netherland have witnessed decline of about 8%, 14% and 5% respectively whereas UK,
Germany, Italy, France, Australia, Sweden and Spain have registered positive growth of
15%, 3%, 3%, 5%, 24%, 26% and 13% respectively during this period.
Export of Indian Spices

During 2014-15, Indian spices exports have been able to continue its increasing trend
both in volume and value. During the FY a total of 8,93,920 tons of spices and spice
products valued Rs.14899.68 crore (US$2432.85 Million) has been exported from the
country as against 8,17,250 tons valued Rs.13735.39 crore (US$ 2267.67 Million) in
2013-14 registering an increase of 9% in volume and 8% in rupee terms and 7% in
dollar terms of value.
CHAPTER 8:Comparative Growth in past few years

In real terms the growth rate of the SSI output during 1992-93 is estimated to be about
5.6 per cent compared with only 1.8 per cent growth of the overall industrial production.
In 2006-07, the growth rate of the SSI sector is likely to be more than 12.6 per cent.
Research studies indicate that the SSI sector accounts for 40 per cent of the value
added by the entire manufacturing sector, 6.9 per cent of the net domestic product and
more than 35 per cent of the total volume of exports of the country.
Year No. of SSI Production Employment Export

Units (Rs. Millions) (Millions) (Rs.Millions)
( Millions)
2004-2005 11.859 42,97,960 28.235 12,44,170
2005-2006 12.342 49,78,820 29.491 16,02,420
2006-2007 26.112 70,93,980 59.566 17,76,000
2007-2008 27.279 79,07,590 62.637 18,25,380
2008-2009 28.516 88,08,050 65.935 20,20,170
2009-2010 29.808 98,29,190 69.538 22,35,720
2010-2011 31.152 1,09,57,580 73.217 24,51,270
2011-2012 32.56 1,22,14,420 77.127 26,91,250
From the above Table, it is observed that the total number of Small Scale Industries in
India has increased from 11.859 million in 2004-05 to 32.56 million in 2011-2012.
During the same period, in the production and employment front also, there has been a
steady increase in the overall performance from Rs. 42,97,960 million and 28.235
million persons in the year 2004-05 to Rs. 1,22,14,420 million and 77.127 million
persons in 2011-2012 respectively. The export front from SSI Sector was Rs. 12,44,170

million in 2004-05, which increased to Rs. 26,91,250 in 2011-2012.

From the above data it is to be found that the percentage increases in number of SSIs
i.e., 140.46 per cent which results more or less the same in the percentage of
employment i.e., 133.34 per cent. This indicates that the standard of living of the
people to some extent can be raised by the increase in number of SSI units by proving
employment which in turn result the increase in national economy.
CHAPTER 9: Social And Economic Analysis

Cottage Industry especially started its function in the country sides of a country where
unemployment along with under-employment are prevalent. Thus, this industry helps
the economy by absorbing a huge amount of surplus labor of the rural economy.
The main risk that is being faced by this industry is from the factory based medium or
large industries which are again capital intensive in nature. This is because of the fact
that these large industries utilize all sorts of cost effective technologies which enable
them to supply the products at low price.
The products supplied by the Cottage Industry thus face risk of extinction if they don't
receive enough financial or other form of support from the government. The most
common form of support extended by the governments towards this industry is through
forwarding of capital subsidies.
The Indian agriculturist who has difficulty in making two ends meet will get an additional
support if he can take to cottage industries when he is not employed in his major
occupation. Agriculture does not employ a cultivator all the year round. For many
months the peasant has no work. If during this period he engages himself in simple
cottage industries like basket-work or rope-making, he can earn more for his living.
It will take a long time for India to fully industrialize herself. The nerve-centre of India is
in the villages and she will require cottage industries. And even if large industries are
established, cottage industries will not die out; rather they will grow up as off-shoots of
large industries.
Cottage industries are desirable, not only from the moral and aesthetic points of view,
but also from the point of view of society. In the cottages the worker is not cut off from
his family; rather he works amongst his own people and with their help. This increases
his attachment to the family and develops his better sentiments. He is a man and not a
hand (of machine).
It must also be remembered that it is the large-scale industries that have created a wide
gap between capital and labor. They tend to concentrate wealth in the hands of a few
wealthy men, nowadays called industrial magnates, and the ordinary worker is doubly a

slave – slave to the machine and to the master who owns the machine. Cottage
industries scatter the wealth all over the country and help to do away with the artificial
distinction between the few inordinately rich and the vast majority that are poor. Cottage
Industry is often characterized by its enormous potential for employment generation. It
has been empirically found out that Cottage Industry has given economic independence
to the women in the developing as well as developed countries.
From this point of view cottage industries may be said to be great socializing force.
Case Studies
I. Case Study on problems faced by cottage industry units;
Royal Crafts Ltd. is a firm engaged in production of unique handicraft items. Handicrafts
have a great demand in both indian as well global markets.However, Royal Crafts is
unable to expand its operations and earn huge profits. On analyzing, it was found that
the company was not able to innovate and meet the demand of the customers inspite of
producing best quality goods. Inspite of investing funds, time and labour, company
could not create enough returns. There were no marginal profits. This happened
because the company did not sell its goods directly to the customer but via middlemen.
As the entreprenuer did not have any marketing strategy or knowledge of the same,they
involved middlemen who was suppose to take care of the marketing and sales. Thus, a
part of company fund was blocked in unnecesary expense of middlemen.
Also the company was running out of adequate finance. The entreprenuer had low
savings. Also due to his low economic base, entreprenuer had low credit worthiness.
This reduced the scale of operation. Major finance goes in buying raw materials. Local
markets have poor quality raw materials and in inediquate quantity, also the supply of
raw materials is not regular. Hence, the firm has no other option but to buy from open
markets at higher prices which results into increase in cost of production.
Royal Craft due to its small scale and lack of funds cannot adapt to advanced
technologies.As there is no mass production, using heavy machinery also may increase
the cost of production.However its employees believe in handwork and donot have
technology know-how.
Thus, on the basis of this analysis, the entreprenuer of RoyalCrafts gets to know the
loopholes- where his operations are going wrong and affecting the organization. It
enables him to take appropriate majors to rectify and expand his organization.

II. Case Study on how cottage industries are developing / development of cottage
industries
Asian Handicrafts Pvt. Ltd. is a well-known Govt. Recognised Export House, an ISO
9001:2008 certified company based in Gurgaon (Delhi – NCR), India. Established
in1976, Asian Handicrafts Pvt. Ltd. is the field of manufacturing and exporting Indian
Handicrafts and Fashion Jewellery items since more than 39 years. The products are of
elegance, style and superior quality manufactured by skilled Indian craftsmen.
Showcasing a range, that is ethnic as well as innovative, the company has established
itself as a leading name in the field of Beaded Products, Fashion Jewellery&
Accessories including many other Giftable& Christmas Decorative items. Asian
Handicrafts Pvt. Ltd. is acknowledged for its professional approach in creativity, design
and exclusive products. The company understands the importance of Quality and
Timely Delivery of merchandise in this competitive and challenging International
Business scenario.
Its dedicated team of employee & workers is at par excellence, skilled and are part of
executing the orders with excellent results in quality, production and shipping.
Asian Handicrafts Pvt. Ltd. strives hard to provide excellent services to its customers
and believes in 100% customer satisfaction. The company does not believe in cutting
corners in work and takes a professional and positive attitude. Sincerity, Dedication and
Consistency shows in its work. There is appropriate infrastructure, adequate training
and good environment for the workers. Regular checks are already in place for
achieving continuous improvement by constantly monitoring the systems to maintain
growth, consistent quality and timely delivery. Employees & workers are happy and are
well taken care off in this fully compliant and sociallyresponsible organization.
Thus cottage industries are developing more and more since years and contributing to
the Indian economy.

Future prospects: Irrespective of the degree of support extended by the

government and irrespective of the amount of effort put in by small industries and their
association, India is going to experience the growth of the small industry sector, which is
qualitatively superior, technologically vibrant and internationally competitive, in the next
5-10 years because the “inefficient one’ are likely to vanish gradually. The objective of
the policy-makers as well as small industry associations should be to enable the sector
to be vibrant and competitive without a considerable reduction in its size and thereby
enable it to make a sustainable contribution to national income, output and exports.
Conclusion
The Cottage and small scale industries constitute a timeless part of the rich cultural
Heritage of India. The element of art and craft present in these industries makes it a
potential sector for the upper segments of market domestic as well as global. However,
the sector is beset with manifold problems such as obsolete technologies, unorganized
production system, low productivity, inadequate working capital, conventional product
range, weak marketing link, overall stagnation of production and sales and, above all,
competition from power loom and mill sector. As a result of effective Government
intervention through financial assistance and implementation of various developmental
and welfare schemes, the cottage and small scale sector, to some extent, has been
able to tide over these disadvantages. Thus, cottage sector forms a precious part of the
generational legacy and exemplifies the richness and diversity of our country and the
artistry of the weavers.
Cottage and small-scale industries are most suited in Indian conditions. Rightly,
therefore, they have occupied a dominant place in Indian economy. About two crore
persons are engaged in these industries. The commodities of these industries are
basically consumable products and that are being produced through the utilization of the
traditional techniques. In the atmosphere of prevailing unemployment, people have no
alternative but to go for home made small scale industries for the survival of livelihood.
Thus, a huge section of labour of large population is absorbed to stabilize the rural
economy.
It has been often seen that in large scale industries, corruption becomes rampant.
Women and children, who get employed in these big industries, are often exploited by
their employers. Cottage industries, which are usually run on a small scale, are free
from these problems. Since these industries are mostly centralised to the homes of the
workers, hence social ills do not flourish in any form.
New trend are coming up and being accepted by the society such as ‘go green’, etc.
which is an opportunity for cottage industry as its operations are eco friendly and not so
damaging. People also appreciate customized products which again are a benefit

towards cottage industry; they can easily meet customized needs as they do not have
mass production.
Also Calorie conscious people prefer eating olive oil to ghee and avoid pickles.

Today, allopathy has already superceded Ayurveda, so the herbal medicines and other
indigenous food items have a lesser number of buyers now.If all this continues to take
place, then the promotion of cottage industries would become like a tough battle.
However, they will bring about a more equitable distribution of wealth. In the words of
Dr. V.K.R.V. Rao, ''Small scale and cottage industries have a special claim for
consideration in that they are the local investments through which the decentralization
of industrial production can be achieved." It can, therefore, be said that 'Small is
Beautiful'.
Hence, it can be rightly said that cottage industry has its own advantages and some
difficulties as well, but they can successfully compete with machine made goods, if they
are run on modern lines. Periodic exhibitions of the good; manufactured by Cottage
Industries and development of Co-operative system are of great advantage for their
progress. Co-operative system can help in solving the problems of capital, raw material
and marketing and then, this cottage industry would easily withstand the competition
from Large Scale factory production.

Bibliography
http://www.economywatch.com/world-industries/cottage.html
http://www.ijsrp.org/research-paper-0313/ijsrp-p1570.pdf
https://www.academia.edu/5450611/
MARKETING_PRACTICES_IN_SMALL_BUSINESSES_CONCENTRATION_ON_COT
TAGE_INDUSTRY_
http://www.importantindia.com/15727/cottage-industries-in-india/
http://www.trcollege.net/study-material/24-economics/48-role-of-small-scale-and-
cottage-industries
http://www.yourarticlelibrary.com/essay/economics-essay/government-policies-for-
development-and-promotion-of-small-scale-industries-in-india/41015/
http://www.discoveredindia.com/rajasthan/culture-in-rajasthan/arts-and-crafts-in-
rajasthan/tie-and-dye-work.htm
http://undiscoveredindiantreasures.blogspot.in/2011/07/farrukhabads-hand-printing-
sleight-of.html
http://www.utsavpedia.com/textiles/chanderi/
http://www.utsavpedia.com/textiles/banarasi-silk/
http://www.camelcraft.com/jammu-kashmir-handicrafts.html
http://www.indianmirror.com/crafts/cra2.html
http://www.craftandartisans.com/cane-and-bamboo
http://www.culturalindia.net/indian-crafts/indian-pottery.html
http://www.culturalindia.net/indian-crafts/clay-toys.html
http://www.indianmirror.com/culture/jewelry/jewelry.html
http://www.indianmirror.com/ayurveda/indian-spices/indian-spices.html
http://www.indianmirror.com/ayurveda/indian-spices/asafoetida.html
http://www.indianmirror.com/ayurveda/indian-spices/cumin.html
http://www.indianmirror.com/ayurveda/indian-spices/mint.html

http://www.irjcjournals.org/ijmssr/jan2013/6.pdf
http://www.ibef.org/exports/handicrafts-industry-india.aspx
http://www.indianhandicraftexporter.com/
http://www.india-exports.com/handicraft.html
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https://www.hepcindia.com/
http://www.ijecbs.com/July2011/15.pdf
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Overview of Cottage Industry in India

Kishinchand Chellaram College 1

(ii)Indian cottage industry

Kishinchand Chellaram College 2

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(iii)Need for Cottage Industry

(iv)Role of Cottage Industries

Employment generation: Another major occupation in Indian villages other than

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Regional Dispersal of Industries: There has been massive concentration of large-

Mobilization of Capital and Entrepreneurial Skill: Small-scale industries are at a

The rapid development of small-scale industries in the post-Independence period is a

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CHAPTER 2: Evolution of Cottage Industry

(5) Deterioration in the quality of Indian products themselves.

Kishinchand Chellaram College 7

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National Bank for Agriculture and Rural Development (NABARD):NABARD works

National Small Industries Corporation Limited (NSIC): Set up with the objective to

National Commission for Enterprises in the Unorganized Sector (NCEUS): This

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Rural and Women Entrepreneurship Development (RWED): This programme is

The Rural Small Business Development Centre (RSBDC) a centre sponsored by

Khadi and Village Industries Commission (KVIC) is a statutory bodyformed by

Incentives: The government of India emphasis on economic and industrial

The introduction of Market Development Assistance scheme (MDA), Entrepreneur

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(iv)Licensing and Registraion

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Provisional Registration: In Provisional registration, you will be issued a provisional

If the entrepreneur is not in a position to commence production on account of

Permanent / Final Registration: A provisionally registered industrial unit when it is

 The factory building is ready

CHAPTER 3: MERITS AND DEMERITS

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(i)Importance Of Cottage Industries

3. Increase in Foreign Exchange Earnings:

4. Use of Industrial waste:

5. Provides Employment to Women:

6. Increase in the Income:

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8. Proper Distribution of Wealth:

9. Establishment With Small Capital:

10. Development of Backward Areas:

12. Reduction in Migration:

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(ii)Advantages Of Cottage Industries

Save Operating Costs

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Specific Legal Protections

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(iii)Problems faced by Small-scale industries

Inadequate Finance: A serious problem of these industries is in respect of credit, both

Competition from Large-Scale Industries: Another serious problem which these

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(iv)Steps Taken By Government To Overcome The Problem

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CHAPTER 4 :Types Of Cottage Industries

(i)Handloom and Weaving

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The dawn of Independence provided an opportunity to accord priority treatment to the

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Large footprint of the handloom sector in the economy