Empowering Handicrafts, Handlooms, and MSMEs for Growth

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Empowering Handicrafts, Handlooms, and MSMEs for Growth

## Integrated Cluster Development Scheme for Handicrafts, Handlooms, and MSMEs in Rajasthan

The state government of Rajasthan is planning to implement an "integrated cluster development scheme" to boost the productivity and quality of handicrafts, handlooms, and micro, small & medium enterprises (MSME) sectors. This scheme aims to build the capacity of MSMEs, making them more market-oriented and competitive.

A draft policy for the scheme has been prepared and is currently seeking suggestions from stakeholders. The final policy is expected to be announced after the Lok Sabha elections.

The draft policy highlights the need for a practical, simple, and acceptable scheme to develop important industrial sectors like handicrafts, handloom, and MSMEs in the face of global competition.

Support for Artisans, Craftsmen, and Weavers: This includes soft interventions for capacity building, operation of a raw material bank for easy resource availability, and market development through e-commerce platforms.

The scheme will provide assistance for establishing common facility centers (CFCs) with state government support for projects up to Rs 5 crore.

The scheme will focus on infrastructure development for existing clusters in non-RIICO industrial areas and for greenfield clusters in non-RIICO industrial areas.

For implementing the cluster development project related to artisans, craftsmen, and weavers, a special purpose vehicle (SPV) will be constituted. This SPV will be a partnership firm, trust, society, co-operative society, company, or producer company with at least ten artisans, craftsmen, and/or weavers having registered artisan ID cards. Artisans, craftsmen, and weavers practicing their trade in Rajasthan will be eligible to be part of the SPV.

This integrated cluster development scheme is expected to significantly benefit the handicrafts, handlooms, and MSME sectors in Rajasthan, leading to increased productivity, improved quality, enhanced market competitiveness, and ultimately, greater economic growth and prosperity for the state.