Magazine 2013
International Peer-Reviewed Journal  
RH, VOL. 3 JULY 2013  
Place of Handicraft Cottage Industries in  
Savarkundala Town  
Rekha Kaklotar  
ABSTRACT  
Handicraft small-scale industries carried on at home by family members using their own  
equipment benefited a lot in the development of our country. After Independence, India gave the  
legitimate place to cottage Industries in the national economy. The term “cottage industry” was  
formerly applied to manufacturing that took place in people’s homes. . Dr. V. K. R. V. Rao in his  
article on “Small-Scale and Cottage Industries says that , “A small-scale industry is one which is  
operated mainly with hired labor usually not exceeding 50 workers in any establishment or unit  
using any motive power in any operation or 20 workers in an establishment or unit using such  
power.” This research study surveys and analyzes handicraft cottage industries in the town of  
Savarkundala keeping in consideration the work undertaken by women. All these details are based  
on data prepared in the form of questionnaires, which include social and family information,  
employment and income related information, opinions of the management regarding these industries  
etc. In Handicrafts Industries women are doing various kinds of works like sewing and preparing  
handkerchiefs, jackets, chaniya choli, bed sheets, interior decorations materials, cloth-bags, pillows,  
curtains, cushions, embroidery, and other home making materials.  
Keywords - Handicraft, National Economy, Cottage Industry, Hired Labor, Women.  
Introduction  
From the earliest beginning in the history of India, cottage industries and handicrafts have constituted  
the central elements in the organic unity and culture of the people. These small-scale industries carried on at  
home by family members using their own equipment benefited a lot in the development of our country. The  
products of cottage industries spread all over of the world. The cottage industries however continued to be one  
of the chief means of livelihood for large number of people in this country. After India became free in 1947, the  
government realized that further decay of cottage industries should be stopped and that they should be given  
the legitimate place in the national economy.  
The origin of the present research is to examine the relevance of cottage industries in developing countries  
like ours. The study entitled “The Place of handicraft Cottage Industries in Savarkundala Town in Gujarat”  
attempts to analyze the present problems and future prospects of the cottage industries. The cottage industry  
holds importance in the state economy, in employment, output and exports. Besides, the cottage industry  
does help in the preservation of the traditional skills and cultural heritage of the state.  
What is Cottage industry?  
The term “cottage industry” was formerly applied to manufacturing that took place in people’s homes.  
Many women with young children who do not wish to work outside the home find work in the cottage industry.  
Cottage industries” is a term that was used during the eighteenth and nineteenth centuries to describe the  
home-based system of manufacturing. This term is also used today to refer to goods or services that are  
produced at home. Sewing, design production, sales and marketing, typing, bookkeeping, and auto repair  
are just a few examples of home-based employment. There are many reasons that people choose to work from  
their homes. Many parents enjoy being able to spend time with their children during the day. Parents maintain  
responsibility for the safety of their own children. Another reason people choose to work from home is that they  
do not have to commute to and from their workplace. By not commuting to work, they can save on wear and  
tear of their vehicle, get lower insurance rates, and spend less money on gas. Dr. V. K. R. V. Rao in his article on  
Small-Scale and Cottage Industries” says that , “A small-scale industry is one which is operated mainly with  
hired labor usually not exceeding 50 workers in any establishment or unit using any motive power in any  
operation or 20 workers in an establishment or unit using such power.”  
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International Peer-Reviewed Journal  
Importance of cottage Industries  
RH, VOL. 3 JULY 2013  
The importance of cottage and small-scale industries arises from the various aspects which are as  
follows  
Employment  
Cottage and small-scale industries generate more employment opportunities. underdeveloped countries  
have large reserves of surplus labour and they are paying special attention to labour-intensive rather than  
concentrating on capital intensive heavy industries.  
Capital  
In India capital is scarce, the optimum use of available capital resources in terms of employment and  
productivity must, therefore, one of the main goals of economic planning is proper utilization of scare resources.  
Large industries require huge amount of capital. Small industries can he established with limited capital. If we  
invest the scarce capital in small-scale industries, the returns are quick and hence the generated returns may  
again form capital.  
Inequalities in incomes  
In India there is a wide disparity in wealth and incomes of the people. The small-scale and cottage  
industries bring equality of wealth and incomes, which will result in a large and more widely distributed sharing  
of the productive function and therefore, a more equitable distribution of the production of industry.  
Regional Disparities  
All regions in India are not equally developed. Some areas like Bombay, Madras, and Calcutta attained  
a high degree of development, when compared to other .parts of the country. The cottage and small-scale  
industries spread in corner of the country which can be establish decentralization of industries.  
Less Industrial Dispute  
In large-scale industries, as the scope for personal touch between the workers and management is less.  
But in the case of small-scale industries, the owner will be generally in touch with the workers, which enables  
them to understand each other. All the above considerations form a strong base for the urgency to develop the  
cottage and small-scale industries.  
Objectives of this study  
1
2
3
. To get information about income of female laborers.  
. To get information about development of handicraft industries in Savarkundala.  
. To know problem faced by cottage industries in Savarkundala.  
Research methodology  
This is a survey based research. Primary and secondary data used for this study. Primary data collected  
through survey of 50 female laborer. The researcher prepared a questionnaire related to these Industries. The  
secondary data collected through various articles, newspapers cuttings, reference books, websites etc.  
Problem faced by handicraft cottage industries in Savarkundala  
Generally, cottage industries facing problems like, scarcity of raw material, old technique of production  
,
law productivity, competition with big industries, marketing related problems, heavy taxation( like octroi,sales  
tax etc.) ,lack of finance etc. As the same problems facing by handicraft industries in Savarkundala. Some  
others problems facing this industries. These are as follow;  
1
.
Heavily dependencies on open market for raw material, where the prices are more then double then  
the controlled prices. So cost of production remains high.  
2
3
.
.
Struggle for existence of cottage industries against large industries.  
The village entrepreneur lack in technical education. If they want to introduce improved tools. Due to  
lack of finance they can’t do.  
4
.
Lack of proper marketing channels. Also entrepreneurs are not aware of the market.  
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International Peer-Reviewed Journal  
RH, VOL. 3 JULY 2013  
An analytical survey and study of the cottage industries in Savarkundala  
This research study survey and analyzes handicraft cottage industries in the town of Savarkundala keeping  
in consideration undertaken by women. All these details are based on data prepared in the form of questionnaires,  
which include social and family information, employment and income related information, opinions of the  
management regarding these industries etc.  
1
. Social and Family Information of the Women Involved in Selected Cottage Industries of Savarkundala  
This study carried out of the fifty samples of Handicrafts, Out of a total of 50 female samples 1(2%) female  
is under 17 means there is child labour in these industries.20 (40%) female between ages 18 to 28, there are  
1
8(36%) female between age 29 to 39 and 11(22%) are above 39 years of age.  
One can easily understand how much burden of earning is imposed on women in a family by knowing  
the number of family members. Of total 04 (8%) women labourers there are less then 5 members, 41(82%)  
women labourers have 5 to 7 members in their family. Families more than 7 members are 5 (10%). This shows  
awareness toward family planning among these members.  
Education is directly concerned with job work or occupation. In Handicrafts 6(12%) women’s are illiterate,  
2
4(48%) are less then S.S.C, 10(20%) are H.S.C and 10 (20%) females are Graduates.  
Marital status was another matter of survey. In Handicrafts 40 (80%) married and 10(20%) are unmarried  
women.  
Self-employment and income is the prime concern of all cottage industries. Any industry is basically an  
economic activity. Working women are satisfying economic needs of their families. Cottage industry among  
women is an extra-income activity among housewives and educated women. Most of the unemployed educated  
women have resorted to self-employment through cottage industries. Here is an attempt to get extra-advantages  
of income from cottage industries. Most of these women doing economic activity to support their family  
members. The following Table shows Monthly Income earned by these women through their economic activities:  
TABLE 1:  
MONTHLY INCOME OF FEMALES (2012-13)  
Monthly Income(In Rs.)  
00 to 500  
01 to 1000  
Ratio of females  
——-  
1
5
22 (44%)  
13 (26%)  
03 (6%)  
1
1
2
001 to 1500  
501 to 2000  
001 to 2500  
05 (10%)  
07 (14%)  
More than 2500  
More than 2500 Rs./  
Month 14%  
2
001 to 2000 Rs./  
501 to  
1000  
Month 10%  
Rs./  
Month  
1
501 to 2000 Rs./  
44%  
Month 6%  
1
001 to 1500 Rs./  
Month 26%  
Total  
50 (100%)  
Wages are of different kinds that are availed to workers and there are different factors responsible for it. Some  
workers are paid less or more depending upon the quality and quantity (hours) of their work. Generally, benefits  
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International Peer-Reviewed Journal  
RH, VOL. 3 JULY 2013  
other than wages are given to workers. It includes gratuity, bonus, pension, and leaves. No such benefits are  
given to these workers because they are all not government servants. The following Table shows Benefits other  
than Wages offered to them:  
TABLE 2:  
BENEFITS OTHER THEN WAGES (2012-13)  
Other Benefits(Yes / No)  
Female in Handicrafts  
09 (18%)  
Yes  
No  
41 (82%)  
Total  
50 (100%)  
Cottage industry workers do not generally get sufficient income from their work. Hence, they have to rely  
on other sources of income. Moreover, they do not find industrial work throughout the year. The remuneration  
of their work also keeps on changing. The wages depend also upon the mental-setup of the worker with the  
management. These are some of the reasons which constantly put the workers in check. The following were the  
answers given by the workers to the question:  
TABLE: 3  
“DO YOU GET SUFFICIENT INCOME FROM YOUR WORK?” (2012-13)  
Yes /No  
Yes  
Female in Handicrafts  
26 (52%)  
No  
24 (48%)  
Not Sure  
——-  
Nature of Work  
In Handicrafts women work for different kinds of job works related with sewing and preparing handkerchiefs,  
jackets, chaniya choli, bed sheets, interior decorations materials, cloth-bags, pillows, curtains, cushions,  
embroidery, and other home making materials.  
2.  
Opinions about and from the Management  
The researcher prepared a separate Questionnaire for the managers in order to dig out typical problems,  
here is attempt to know opinions about the women managers who run Handicrafts in Savarkundala.  
(a) Primary Information  
-
-
-
Most of the women managers have 3 to 6 family members.  
The family members possess education up to 7 Standard to Graduation.  
All women managers’ husbands are either doing private jobs or associated with government jobs.  
They also help their spouses in various jobs.  
-
-
All women managers live in single family which is made by Husband, wife and children.  
These women workers get on an average an income from Rs. 30,000/- to 50,000/- per month. They  
are all very experienced workers first and then they have become managers. Most of them have a  
field-experience of more than 15 years to 42 years.  
(b) Usage of Technology  
Generally speaking, technology is the least exercised in cottage industries. But in modern times, no  
industry can develop without technology. So the management use of technology at one or the other stages. It  
enhances their management of time and work. It has also enhanced more productivity in less time. In handicraft  
cottage industries owner utilize all the resources at their disposal of technology.  
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International Peer-Reviewed Journal  
c) Selling and Marketing; Income and Aid  
RH, VOL. 3 JULY 2013  
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Products of cottage industry require to make of strategy for marketing and selling. The managements of  
these industries try to advertise their products through local newspapers. They also try to reach every house by  
personally visiting at intervals. They say they provide employment to large community of educated unemployed  
people. The monthly income of the management averages between Rs. 30,000/- to Rs. 50,000/-. They earn a  
huge amount of money after investing a good amount of money. There are regional, national and international  
agencies such as Amreli District Cooperative Bank, State Bank of India, and the NABARD from which they  
procure necessary loans and subsidies with an affordable repayment schemes with varying interest between 1  
to 2 % on amount. They also avail 5 % subsidies and grants form Amreli District Cooperative Bank and the  
NABARD for the development of their business.  
Limitation of this study  
1
.
This research study covered only Savarkundala town. So, this result may not be representative of all  
cottage industries.  
2
3
.
.
Deeply analysis of handicraft industries is not possible due to limitation of expression.  
Analysis of this study depends on answer given by female workers.  
Cottage Industry and New Economic Policy  
Globalization is seen as one of the central threats to the creation and transmission of intangible heritage.  
The impact of globalization is complex and multifaceted. The study focus on those women which is working in  
handicraft industries in rural area. Micro level studies of each area to map the details necessary for any effective  
planning for building conditions where by women can be empowered for the creation and transmission.  
Conclusion  
Cottage Industry provide employment opportunity for those women who don’t wont to go outside for  
work .this research study found that generally less educated women choose this occupation as well as educated  
women not getting job any other occupation at that time choose this for provide support to the family. Female  
are not main earner in the family, so whatever income earn by women they satisfied. But if they get chance for  
earn more income they always ready for go there.  
References  
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951. Print.  
1
Government of India, International Planning Team on Small-Scale Industry. 1953. Print.  
Independent Homeworkers Alliance. http://www.homeworkers.org/. Web.  
International Planning Team, Ford Foundation, Report on Small Industries in India,Government of India.  
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955. Print.  
Nadkarni, A.G. Small-Scale Industries: Unsolved Problems of Scarce Raw Materials, Basu, S K.Place and  
Problems of Small Industries. Calcutta : Mukherjee & Co.1957. p.85. Print.  
th  
Narayan, S. L. ‘Problems of Small-scale Industries’, The Economic Times, 24 February, 1971. Print.  
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p. 72. Print.  
Rao, R. V. ‘Small-Scale and Cottage Industries’ Cottage and Small-Scale Industries and Planned Economy.  
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0- 15. Print.  
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