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mechanized equipment employing outside labour, small insize, having little capital resources and a small labour force Cottage Industries are mainly rural in character and are generally associated with agriculture involving operations mostly by hands and are carried on inthe home either as a whole time or as a part time occupation, primarily withthe help of members of the family
1.Employment:
The cottage and small scale industries have high employment capacity. They provide approximately 8-10 times more employment than large scaleindustries. Wi t h i n p e r i o d f r o m 1 9 9 5 2 0 0 4 s ma l l s c a l e s e c t o r c r e a t e d 8 2 . 5 7 l a k h employment opportunities
3.Export Earnings:
The product of these industries like handicrafts, embroidery, handloom, ivory product etc are in great demand in the foreign countries. These industries account for 30% of our export earning by appropriate policymeasures This share can be further increased Export earning from small scale industries increased from Rs.29068 crore-Rs. 86,013 crore between years 1994-2003
4.Labor Intensive:
These require less capital and more labour to produce a given output. These are suitable for developing countries like India where there is shortageof capital on one hand and abundance of labor on the other
.7 . B a l a n c e d R e g i o n a l G r o w t h : T h e s e c a n b e s e t u p i n d i f f e r e n t p a r t s o f t h e c o u n t r y a s t h e y u s e l o c a l l y available raw materials, labor, skill and capital. Thus they bring about balanced regional development.
10.Ancillary Industries:
The small scale industries act as complementary to large scale industries Many of the product required by large scale industries can easily be produced by small units. Eg. Bolts and nuts, carriers for bicycle, cotton bobbins, starch etc