Identify the statements about Cottage Manufacturing.
A. It is also known as Household Industry
B. This type of manufacturing uses simple power-driven machines
C. Capital and transportation do not wield much influence
D. Finished product may be for family's consumption or for sale in local (village) markets or for barter
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A, C, D only
Cottage manufacturing is the smallest manufacturing unit. Artisans use local raw materials and simple tools to make everyday goods in their homes, with the help of family members or part-time labour.
A. It is also known as Household Industry — Correct. Household industries and cottage manufacturing are two names for the same unit. The artisans make the goods in their homes.
B. This type of manufacturing uses simple power-driven machines — Incorrect. Cottage manufacturing uses simple tools. Simple power-driven machines and semi-skilled labour, in a workshop outside the home, belong to small scale manufacturing. NTA took this line from small scale manufacturing and gave it to cottage manufacturing, and a true line became false. Read every word before you mark the answer.
C. Capital and transportation do not wield much influence — Correct. This type of manufacturing has low commercial significance, and most of the tools are made locally.
D. Finished product may be for family’s consumption or for sale in local (village) markets or for barter — Correct. The goods are made for the household itself, for sale in nearby village markets, or for barter (exchange for other goods).
NCERT (2026-27): “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.” “Small Scale Manufacturing Small scale manufacturing is distinguished from household industries by its production techniques and place of manufacture (a workshop outside the home/cottage of the producer). This type of manufacturing uses local raw material, simple power-driven machines and semi-skilled labour.” |