Option (C) is correct because basic industries produce raw materials for other industries. Iron and steel industry are called basic industry. It forms the base of all other industries. Iron and steel form machine tools which are used for further production.

Option (A) is not correct because cottage industry is a small scale industry where the creation of products and services are home based.

Option (B) is not correct because small scale industries use raw material, simple power driven machine for producing goods.

Option (D) is not correct because footloose industries are not dependent on any specific raw material. They depend on component parts which can be obtained anywhere.