A cottage industry is an industry who produces artistic goods using the manual technique. For example, handloom and weaving. Its features are mentioned below:

a. Cottage industries labour comprises of the family and the locally available talent.

b. The equipment used is very simple.

c. The capital investment is small.

d. The resources are procured through private sources.

e. Indigenous technology is used.

f. They produce simple products usually in their own premises.