26 Dec 2017Posted By: chaman

How do small scale industries and cottage industries work for the development of India?

India has rightly been described as the land of agriculture. Agriculture is highly confined to the rural areas of the country. It has been noted that rural areas have been playing a vital role in strengthening the economic development of India by paving the way for small-scale industries and cotton industries. Also, the Government of India is promoting the small-scale industries by its policies. The theme of Small scale industries and cottage industries has been continuously growing within the roots of India.


What are Small-scale & Cottage industries?

Basically, cottage industries and small-scale industries are two very similar terms with a minute difference or distinction between them. Cottage industry is the one which is owned, operated and managed by the members of a family. On the other hand, small-scale industries are deemed as the ones where family members work together with some hired labour. Both can be considered the same in equal ways. Cottage industries and small-scale industries are today, an important instrument of development of India.


Role of Small scale industries and cottage industries in Development

It has been mentioned earlier that small-scale and cottage industries play a significant role in Indian economy. As per a report, around 60% of total innovations in India are believed to have come from small-scale industries and cottage industries.

Following are their role in the development of India:

Provides employment

This is probably the biggest benefit of small-scale industries. They provide people (primarily articles and other skilled persons) employment. People who deal with traditional arts can get easy employment utilising their skills. Unemployment is a big issue in India, does this is deemed as a role to diminish the unemployment rate in the country.

Rural advancement and growth

Previously in India, people from rural areas used to migrate to urban areas such as Metropolitan cities in search of work and employment. The emergence of small-scale industries and cottage industries have boosted the rural advancement and rural growth. It is a continuous process and people of rural areas have good scope in their towns and village itself.

Use of Domestic resources

Small-scale industries and cottage industries pave the way towards utilising and mobilizing the domestic and local resources. This gets unused resources into usage. It promotes the traditional skills and handicrafts. Today they are in a big demand in the country.

Large Export

The small-scale sector has been thoroughly active in Exports. In recent years small-scale industries and cottage industries have marked a surprising growth in exportation. This has strengthened the economy of India. Large export, as per economical terms, reduces the pressure on a country's balance of payment. Also, it helps in incrementing the Indian Foreign Exchange reserve.

Promotes Women growth

The kind of methodology and business ways, the cottage industry, and small-scale industry worked at is an apparent promotion of women growth. The work is style develops several craftsmanship skills in women. In addition to that, Cottage and small-scale industries devised the equal distribution of income which is considered to be a good move in Indian development.

Develop entrepreneurial skills

Entrepreneurship is a booming term in the corporate and non-corporate corridors of India. Developing entrepreneurship skills is a big benefit for a person as well as is a big role towards the development of any country. Small-scale industries and cottage industries let the people dealing in small sectors feel the sensation of self-reliance in the society.



As far as the development of India is concerned, small-scale industries and cottage industries have been consistently playing a major role by granting employments to labours, developing the rural areas, and exporting a good amount of goods. At the same time, it has been beneficial to people. It gives necessary craft skills and entrepreneurial spirit. Overall, it can be said that the small-scale sector enables people of the family to be self-reliable.


In case you need assistance with the Small-Scale Industries you can fill out our inquiry form and arrange a call from E-Startupindia business advisors at 8881069069.


Posted By Pearl Makkar
Posted Date 2019-06-11 15:56:11

Dear sir/madam, My mother wants to start business of selling pickles prepared in our home. What all registrations, if any are required? thank you

Posted By Mohit gulati
Posted Date 2020-03-26 14:37:42

My wife wants to start pickle business. How can she get business registered to start it?

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