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On September 17, 2023 Prime Minister Narendra Modi inaugurated the PM Viswakarma Scheme, drawing inspiration from Viswakarma, the divine architect and master craftsman in Hindu mythology. This scheme is fully funded by the central government, with a total allocation of `13,000 crore. The primary objective of the scheme is to provide

financial assistance to traditional artisans and craftsmen who typically face challenges accessing organized financial credit due to their unorganized sector status. These artisans often find it difficult to secure loans from

banks and other financial institutions, as they lack the necessary collateral and face complex bureaucratic procedures. Therefore, this newly launched scheme aims to bridge this gap, enabling this long-neglected section to access organized financial assistance at more favourable terms, without the need for a guarantor.

During the inauguration of the scheme, Prime Minister Modi expressed optimism, referring to the Viswakarma scheme as a “ray of hope for the lakhs of artisans and their families.” He highlighted the inclusion of various artisan categories such as carpenters, blacksmiths, goldsmiths, sculptors, potters, cobblers, tailors, masons, hairdressers, washermen, and more under the PM Viswakarma Scheme. The scheme allocates Rs.13,000 crore over five financial years, from 2023-24 to 2027-28, to support these artisans and craftsmen in various ways.

How Will the Scheme Assist Artisans?

The scheme’s primary focus is on providing collateral-free, subsidized loans to traditional artisans and craftsmen. In the first tranche, they can avail loans of up to Rs.1 lakh, and in the second tranche, up to Rs.2 lakh, with a minimal interest rate of 5%. Additionally, the scheme aims to enhance the quality of their products by offering basic and advanced training programs. These training initiatives will occur at different locations across the country, providing participants with a daily stipend of Rs.500.

Furthermore, the scheme will create marketing opportunities for artisan products, integrate Viswakarmas into domestic and global value chains, and offer a toolkit incentive of Rs.15,000. This comprehensive approach combines financial support, skill enhancement through training, marketing assistance, and incentives, making it a holistic government policy.

The Union Ministry of Micro, Small, and Medium Industries will oversee the scheme, which encompasses 18 traditional trades, benefiting both urban and rural artisans. The registration and implementation processes will be conducted through common services centres in villages, requiring the collaboration of state governments. The scheme’s objectives include bringing artisans into the formal economy and promoting the preservation of cultural heritage.

Challenges on the Horizon:

Training artisans at an advanced level poses a significant challenge, as many of them inherit their skills from their family members. Establishing a roadmap for training processes and setting up training centres at the sub-district level is essential, with the possibility of expanding their number as needed. Identifying qualified trainers and developing training programs are vital aspects of this endeavour.

Furthermore, a significant portion of artisans lack formal education, making their transition into the formal sector more challenging. State governments’ involvement will be crucial in overcoming these obstacles, necessitating proactive initiatives to ensure the program’s success.

Biswanath Bhatteray, President of FOSMI, commended the scheme’s objectives but emphasized that its successful implementation would not be without its challenges.