Question

How do cottage and small industries contribute to the socio-economic development of the nation? Select the correct answer.

• A. They use outputs of large-scale industries for their inputs.
• B. They provide huge employment opportunities.
• C. They promote large-scale industries.
• D. They promote rural to urban migration.

Answer 1

The correct option is B They provide huge employment opportunities.

Small and cottage industries are important for the economy due to the following reasons:

1. They provide inputs to large-scale industries.
2. They contribute to the exports.
3. They provide a large number of employment opportunities.
4. They reduce the pressure on the agricultural sector.
5. They help in the decentralisation of industries.
6. They help stop the migration from rural to urban centres.