Which of the following statement (s) is/are NOT true in respect of cottage industries?

These industries use labour of family members only.

The correct answer is Option 2: These industries use labour of family members only.

Option 2: These industries use labour of family members only. — Not True. Cottage industries are primarily operated by artisans and their family members, but they may also employ part-time labour when required. Therefore, it is incorrect to say that they use only family labour.

Other Options:

Option 1: The artisans use local raw materials and simple tools to produce everyday goods in their homes. — True. Cottage industries typically rely on locally available raw materials and simple tools, and production is carried out at home.

Option 3: Capital and transportation do not wield much influence as this type of manufacturing has low commercial significance. — True. These industries generally operate on a small scale with limited capital requirements and mainly serve local markets.

Option 4: These are also called household industries. — True. Cottage industries are commonly known as household industries because production is carried out within or around the home.

NCERT: HOUSEHOLD INDUSTRIES OR COTTAGE MANUFACTURING:  It is the smallest manufacturing unit. The artisans use local raw materials and simple tools to produce everyday goods in their homes with the help of their family members or part time labour. Finished products may be for consumption in the same household or, for sale in local (village) markets, or, for barter. Capital and transportation do not wield much influence as this type of manufacturing has low commercial significance and most of the tools are devised locally.