Question

Long answer type questions.

“Cottage industries must be necessarily rural industries.” Discuss the authenticity of statement.

Answer 1

According to KVIC (Khadi and Village Industry Commission), "Rural industry means any industry located in rural areas, the population of which does not exceed 10,000 or such other figure which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed thousand rupees." As per the definition given by KVIC, to be considered as rural industries, cottage industries should be located in rural areas. However, cottage industries are not only limited to rural areas but are also found in urban and semi-urban areas. Thus, it is not necessary for the cottage industries to be rural industries.