Cottage industries are those where artistic goods are produced using manual techniques. For example, handloom, weaving, etc.
Cottage industry is characterised by the following features
(i) It is organised by individuals, with private resources.
. (ii) It normally uses family labour and locally available talent.
(iii) The equipment used in it are simple.
(iv) Its capital investment is small.
(v) It produces simple products, normally in its own premises.
(vi) It produces goods using indigenous technology.