If it is said that India is as yet a nation of villages, it won’t be an exaggeration! The term “cottage industry‟ is used when items are produced on a small scale. India is notable for its huge number of customary house ventures.
Firstly, the cottage industry, by virtue of being largely family-run with skilled workers passing on knowledge from generation to generation, helps preserve the cultural heritage of the country. Furthermore, India is as culturally vast as it is geographically and with a change in the geographical area, the style of products is also altered depending on the culture prevalent in said area.
The cottage industry is regularly described by its enormous potential for employment and the individual getting employed is essentially viewed as an independently employed one. It has been exactly discovered that the Cottage Industry has given monetary autonomy to the ladies in creating just as evolved nations.
Cottage industries involve all the family members contributing to the development of the family. The most common form of support extended by the governments towards this industry is through forwarding of capital subsidies. Another form of support is through self-help groups. They are a lot supportive of such small scale businesses. This blog here covers a bit about some thriving cottage industries in India.
Current Situation of Cottage Industries
With the coming of industrialization, cottage industries saw a sharp decrease. Be that as it may, the government has found a way to resuscitate house ventures and they presently have a significant influence in adding to the economy of the nation. The main five Indian cottage industries are cotton weaving, silk weaving, carpet making, leather industry, metal handicrafts, and small food processing industries.
On the other hand, the structure of our villages has also changed a lot, and facilities like cities are available in many villages. In these circumstances, small changes in the villages and towns called cottage industries are seen to be drastically changing. Many cottage industries are in crisis condition or have ended due to not being able to compete with the larger ones.
Challenges Faced by Cottage Industries
Over the years, employment may have increased in this industry but the income of the people has definitely decreased. This is because the middlemen offer low prices to the manufacturers but take heavy chunks of money from the buyers. The new revised foreign policies, globalization is also responsible for the current condition of the cottage industry.
The other challenges faced by the Cottage Industries in India are as follows:
1. Competition From Medium- and Large- Scale Industries
The cottage industry faces competition from medium and large industries that use high-end technologies for production. The economies of large-scale production are not available to them and therefore they fail to compete with large-scale industries. Cottage industries are the victims when it comes to attracting the attention of the modern industry.
The small scale industries need to implement modern technology which not only enhances productivity but also develop the skills of the laborers to meet the requirements of the local market.
2. Unavailability of Raw Material
The raw materials are limited to specific seasons and their availability decreases with time. Due to their limited resources, the owners of these industries cannot afford to purchase raw-material in bulk. That is why they get low-quality materials at high rates.
3. The Problem of Finance
Cheap and easy finance is not available to these industries. There is a lot of formality and complication that a cottage industry has to go through to avail of the basic financing aid from the government and other institutions. Many times such small-scale industries are run by less educated people. Hence, it becomes difficult for them to go ahead and take these opportunities.
4. Marketing Issues
These industries mainly exist in villages and due to lack of transport and communication facilities, they are handicapped in finding suitable markets for their products. Also, not many brands and companies tend to feature the products of these industries. The local people have to take immense pains to market their goods effectively.
Furthermore, transport and communication can also be a hindrance as they require capital investment; hence, these enterprises are often limited to the local distribution of their goods.
5. Lack of Management
Cottage and small scale industries are mostly run by the small businessmen having no training in management and organization. Lack of proper managerial skills coupled with the infrastructure to support production is also a factor that holds this industry back. How these industries, therefore, can stand before the large scale industries which are managed and organized by the specialists of that field?
Have a look at this detailed article about “Challenges faced by cottage industries” to learn more about such small-scale industries!
Government Actions Supporting Cottage Industries:
Keeping in view the importance of cottage and small-scale industries the government has taken many steps to overcome their problems. Some of the main steps taken are:
- The Small Scale Industries Board
- The Khadi and Village Industries Commission
- The All India Handicrafts Board
- The AH India-Handloom Board
- Central Silk Board, etc.
The government also provides some basic provisions. Some of these include building up 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, and enhancing the limit of capital investment for small scale and ancillary industries.
Read this amazing paper on “Emerging Opportunities and Challenges for Cottage Industries in India” and know more about it!
The fate of cottage industries in India isn't dreary in the event that it gets a little government consolation too. Numerous jobless can get independent work because of the comfort of momentary little credits. Different government plans are likewise being led toward this path, which can be viable sooner rather than later. Along these lines, the movement of rustic youth to urban communities can likewise be halted.
Conclusion
Cottage industries are the foundation of our nation's economy. On one hand, such means are used which are of domestic and local levels, on the other hand, pollution is also less spread through them. Therefore, giving importance to them in comparison to small and large scale industries can be called intelligent in every way!
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Written By - Riya Garg
Edited By - Neha Kundu
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