Gujarat Launches Cottage and Rural Industries Policy with Job Creation, Loans, and Subsidies
Team Finance Saathi
28/Nov/2024

What's Covered in the Article:
- The Gujarat government introduces a new policy to support artisans and rural industries.
- Enhanced loans and subsidies designed to create 12 lakh jobs over five years.
- New initiatives, including skill training, export incentives, and building PM Ekta Mall.
The Gujarat government’s recent unveiling of the Cottage and Rural Industries Policy marks a significant step toward strengthening the state’s artisan and cottage industry sector. This five-year plan aims to generate around 12 lakh jobs, focusing on expanding opportunities for rural entrepreneurs and artisans. The loan amounts for microentrepreneurs have been raised substantially, with a maximum loan cap of ₹25 lakh (US$ 29,626.47), providing more financial flexibility for business growth. Additionally, subsidies have increased to ₹3.75 lakh (US$ 4,443.97), ensuring better support for small industries.
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A key feature of the policy is the promotion of handloom and handicraft industries, where the government is enhancing the loan cap under the 'Dattopant Thengadi Artisan Interest Subsidy Scheme' from ₹1 lakh (US$ 1,185.06) to ₹3 lakh (US$ 3,555.18). This initiative is expected to boost the sales value of these sectors from ₹460 crore (US$ 54.5 million) to ₹1,500 crore (US$ 177.8 million) in the next five years, benefiting artisans across the state. As part of the plan, around 60,000 microentrepreneurs will receive skill development training, equipping them to better meet market demands.
The government also plans to build the PM Ekta Mall in Surat at a cost of ₹280 crore (US$ 33.2 million), offering a dedicated space for artisans to showcase their products. Additionally, the state aims to register 5,000 artisans on e-commerce platforms, enhancing their market reach and facilitating exports. Support measures also include compensatory assistance for small manufacturers and export incentives for 2,500 artisans.
In line with the broader vision to protect and promote local heritage, the policy focuses on securing Geographical Indication (GI) tags for specific products, ensuring intellectual property rights and safeguarding traditional crafts. The holistic approach of the Cottage and Rural Industries Policy promises to significantly enhance the socio-economic conditions of artisans while contributing to the state's overall economic growth.
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