Village industries: These industries fulfill the basic needs of local markets and all its requirements like raw materials, skilled labour, etc., are met from within the village. They include handloom, pottery making, food processing, pickles, khadi, etc.
Cottage industries: These are also known as household industries and are organised by individuals with private resources and with the help of household members. They use locally available resources and skills. For example, carpet weaving, handloom and handicrafts industry, etc.