Cottage industries are very famous in ancient India. People used to feel proud in having their own cottage industries. They used to meet their needs by local production. Deccan Muslim is the greatest example of cottage industry upto this day. In Muslim period it was at the peak of glory. Even foreigners praised them too. At that time there was no unemployment due to these cottage industries.

When British rulers came to India they could not bear the prosperity and well to do India. They tried to make India a weak and poor country by applying their own policies. They started to manufacture things by machines and sold them at low prices. It changed the minds of people as they could buy things at cheaper rates. On the other hand the things made by hand were less fine and were costlier too. Thus the cottage industry suffered heavily.

Gradually big industries took the place of cottage industries. Men were thrown out of their jobs due to machines. As a machine could produce more by using less labour and less time. It caused the problem of unemployment in the country. Machines were the main cause of the downfall of cottage industries.

Soon, some of our great leader like Gandhiji and other realized the importance of cottage industries. They tried to adopt the swadeshi policy. Every Indian strictly followed the policy and they boycott all the foreign goods. They felt that it was the only way to raise India once more by bringing back the lost dignity of cottage industries.

After the independence our government realized the importance of cottage industries. They encourage them and gave aid to them who needed it. They are being provided facilities for the purchase of raw material and sale of products. India there is a great need of lifting up the cottage industries or home industries.

Nowadays it is very necessary for the youths to set their own small scale industries. They are helpful improving their economic conditions too. Big factories need a great amount of money. So one can start cottage industries with a small amount of money. Even they do not need experts and high technical knowledge. Government is sanctioning the loans to those who want to setup their own industries like carpentry, poultry, fruit preserving, making of birds, weaving, shoe making, printing, manufacture of toys, aggarbatti, brush, locks, handlooms, carpets and readymade clothes, etc.