Role of Village Industries in India

Village industries have a crucial role to play in rural as well as urban development. It is because employment is one of the crying needs of the present day and village industries generate jobs. Moreover, large scale industries often do not hire certain class of artisans. Development outside the agricultural sector has not been enough to produce employment opportunities in rural areas. This is where village industries step in. They involve cooperation and local initiative creating a high chance of succeeding.

Another benefit of these industries is that they use simple methods and local materials for production. Agriculture is also allied to village industries. It is the reason these industries can change the way development is reaching Indian villages and towns. Moreover, rural arts and crafts have socioeconomic significance and are suited to promoting the organic unity and culture of areas developing and growing.

Village industries also provide self-sufficiency in production. They are substantially linked to each other and factors like marketing, supply of equipment, state policy, finance, raw materials and research have to be considered as a part of the picture. Village industries also discharge obligation of providing employment to workers in villages and urban areas. This is more so for the seasonally unemployed or those who are landless workers or artisans. Single or multi craft cooperatives are formed that will help the village industries to grow. Organisations like All India Village Industries Association and All India Spinners Association promote turning the village industry into a lucrative proposition.


Village industries have an important role to play in the development and expansion of urban and rural areas. Apart from employment, they also generate essential infrastructure which contributes to the development of a zone. The best part about this type of industry is that it is self-sustaining and does not fall apart easily. Self-sufficiency and stability are the hallmarks of what a village industry can contribute to the Indian economy.

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