The Gujarat government has launched a new policy to boost cottage and rural industries. Announced by Minister Balwantsinh Rajput, this initiative aims to create around 12 lakh jobs over the next five years. The policy replaces the previous scheme, which has now expired. It focuses on supporting artisans and entrepreneurs by enhancing access to credit and market opportunities.
Key Features of the Policy
The New Cottage Policy 2024 will be in effect for five years. It aims to develop a self-sustaining cottage industry sector. The policy intends to open local and international markets for artisans. With increased financial support, the government seeks to nurture innovation and skill development in the sector.
Financial Support and Subsidies
The maximum loan amount available under the scheme has increased . It has risen from Rs 8 lakh to Rs 25 lakh. Additionally, the subsidy has increased from Rs 1.25 lakh to Rs 3.75 lakh. This financial boost is expected to generate approximately 3.3 lakh employment opportunities.
Training and Skill Development
The policy includes a plan to train around 60,000 microentrepreneurs over the next five years. This training will enhance skills and improve the quality of products made by artisans.
Market Expansion Initiatives
The government aims to increase the revenue from handicrafts and handloom items from Rs 460 crore to Rs 1,500 crore within five years. The ‘One District, One Product’ initiative targets 10,000 beneficiaries to promote local products.
Infrastructure Development
The establishment of the ‘PM Ekta Mall’ in Surat is infrastructure project. This mall, costing Rs 280 crore, will provide facilities for artisans, including dormitories. It aims to create a central hub for selling handicrafts and handloom products.
E-commerce and Export Support
The government plans to register around 5,000 artisans on major e-commerce platforms. This initiative will facilitate wider market access for their products. Additionally, incentives will be provided to 2,500 artisans to enhance the export of their goods.
Geographical Indication and Artisan Census
To protect intellectual property rights, artisans will be assisted in obtaining Geographical Indication (GI) tags for their products. An artisan census will also be conducted to identify potential beneficiaries and uplift them within the sector.
Questions for UPSC:
- Critically analyse the impact of increased financial support on the growth of cottage industries in Gujarat.
- Explain the significance of the ‘One District, One Product’ initiative in promoting local handicrafts.
- What are the potential benefits of Geographical Indication tags for artisans? Comment on their importance.
- With suitable examples, discuss how e-commerce platforms can transform the market for rural artisans in India.
Answer Hints:
1. Critically analyse the impact of increased financial support on the growth of cottage industries in Gujarat.
- The maximum loan amount increased from Rs 8 lakh to Rs 25 lakh, enhancing access to capital.
- Subsidies raised from Rs 1.25 lakh to Rs 3.75 lakh, reducing financial burden on artisans.
- Expected generation of approximately 3.3 lakh employment opportunities boosts local economies.
- Focus on skill development and innovation encourages sustainable growth in cottage industries.
- Improved infrastructure and market access will likely increase production and sales for artisans.
2. Explain the significance of the ‘One District, One Product’ initiative in promoting local handicrafts.
- Aims to identify and promote unique products from each district, enhancing local identity.
- Targets 10,000 beneficiaries, providing focused support to artisans in specific regions.
- Encourages collaboration within communities, encouraging a sense of pride and ownership.
- Increases market visibility for local products, attracting both domestic and international buyers.
- Enhances economic development by creating jobs and generating income in rural areas.
3. What are the potential benefits of Geographical Indication tags for artisans? Comment on their importance.
- GI tags protect the unique identity and heritage of artisanal products, preventing imitation.
- They enhance market value and consumer trust, leading to higher sales prices for artisans.
- Encourages preservation of traditional crafts and promotes cultural heritage.
- Facilitates access to international markets, increasing export opportunities for artisans.
- Strengthens the economic viability of local communities by boosting artisanal production.
4. With suitable examples, discuss how e-commerce platforms can transform the market for rural artisans in India.
- E-commerce platforms provide wider market access, allowing artisans to reach global customers.
- Examples like Amazon and Flipkart enable artisans to sell directly, reducing reliance on middlemen.
- Online marketplaces offer marketing tools and analytics, helping artisans understand consumer preferences.
- Success stories, such as rural artisans selling handmade crafts through Etsy, illustrate potential.
- Facilitates financial transactions and logistics support, enhancing operational efficiency for artisans.
