Question

Which of the following started as a cottage industry?
A. Iron and steel industry
B. Textile industry
C. Chemical industry
D. None of these

Answer 1

Hint: Cottage or household industry lies in the category of small-scale industries where the items are produced by hand, by the craftsmen. Examples of a cottage industry are basket weaving, pottery, and other handicrafts.

Complete answer: Large-scale industries produce large volumes of products. The investment of capital is higher and the technology used is also superior in large-scale industries. Examples of large-scale industries are the Production of automobiles and heavy machinery. On the other hand, Small-scale industries use a lesser amount of capital and technology as compared to large-scale industries. And examples of small-scale industries are silk weaving and food processing industries.
The iron and steel industry is heavy but a basic industry since all other industries depend on it for their machinery. Its investment of capital is higher and technology is also superior, thus it does not come under the category of a cottage industry. The Chemical industry is a large-scale industry too and it too does not fall under the category of a cottage industry. The Textile industry is a large-scale industry, but it was not always like this. When this industry started, it started on a very small-scale and therefore it can be included in the category of a cottage industry but with the development of machinery, this industry flourished and is now a large-scale industry.

Thus, option (B) is correct.

Note: Before the beginning of the Industrial Revolution which ushered a new era for industries across the globe in the 1700s, goods were produced on a very small-scale; hence this mode of production was often characterized as a cottage industry. But with the advent of the Industrial Revolution, everything changed drastically for the good.