In recent news, a significant initiative has been taken by the Ministry of Micro, Small & Medium Enterprises (MSME) in India. This initiative involves the inauguration of 50 artisan-based SFURTI clusters distributed across 18 states with the primary goal of boosting the MSME sector.
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
The Ministry of MSME is currently implementing the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). The scheme’s primary objective is to organize traditional industries and artisans into clusters, aiming to increase their competitiveness and income. This scheme was initially launched in 2005 to promote cluster development.
Role of Khadi and Village Industries Commission (KVIC)
The Khadi and Village Industries Commission (KVIC), functioning as the nodal agency, promotes cluster development for both Khadi and Village Industries products.
Classification of SFURTI Clusters
SFURTI Clusters are classified into two types – Regular Cluster and Major Cluster. The Regular Cluster includes 500 artisans and receives government assistance up to Rs. 2.5 crore. On the other hand, the Major Cluster comprises more than 500 artisans and gets government aid up to Rs. 5 crore.
Support and Interventions by the Ministry
The Ministry provides support through various interventions, which include setting up infrastructure through Common Facility Centers (CFCs), procurement of new machinery, creating raw material banks, design intervention, improved packaging, and enhanced skills and capacity development. Additionally, the scheme aims to strengthen cluster governance systems with active stakeholder participation.
Innovative Strategies for Cluster Development
To address emerging challenges and opportunities, the clusters are developed through the incorporation of innovative and traditional skills, advanced technology and processes, market intelligence, and new models of public-private partnerships. This strategy aims to replicate similar models of cluster-based traditional industries gradually.
Additional Initiatives for MSME Sector Promotion
Several other recent initiatives have been undertaken to further promote the MSME sector. These include the Udyog Aadhaar Memorandum (UAM), a Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE), Credit Guarantee Fund Scheme, Prime Minister’s Employment Generation Programme (PMEGP), and Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation.
Conclusion
These initiatives from the Ministry of MSME, including the inauguration of 50 SFURTI clusters and the implementation of various supportive schemes, signify the government’s commitment to propelling the growth of Micro, Small & Medium Enterprises in India.
Last Modified: February 10, 2024