Comprehensive Handicrafts Cluster Development Scheme

In News

• Ministry of Textiles has approved the continuation of the Comprehensive Handicrafts Cluster Development Scheme with a total outlay of 160 crore rupees.
  • The scheme will continue up to March 2026.

About the Scheme

• Aim & Objectives:
  • To create a world-class infrastructure that caters to the business needs of the local artisans and small and medium-sized enterprises to boost production and export.
  • It will provide employment, adequate training, the latest technology, and human resource development inputs. It is also coupled with market linkages and production diversification.
• Key Provisions:
  • Soft interventions like Baseline Survey and Activity Mapping, Skill Training, Improved Tool Kits, Marketing events, Seminars, Publicity, Design workshops, Capacity Building, etc will be provided.
  • Hard interventions like Common Facility Centers, Emporiums, Raw Material Banks, Trade Facilitation Centers, Common Production Centers, Design and Resource Centers will also be granted.
  • The integrated projects will be taken up for development through Central or State Handicrafts Corporations, Autonomous Body-Council-Institute, Registered Cooperatives, Producer company of artisans.

Textile Handicrafts Sector in India

• About:
  • As per Invest India, the domestic textiles and apparel sector has a 5 per cent share in India’s GDP and 12 per cent in export earnings. Textile handicraft products included bags, shawls, saris, home decor items, etc.
  • It is labour- intensive sector that employs 45 mn people.
• Challenges:
  • Competition in the domestic market.
  • Balance between high demand and supply.
  • Quality products are produced by competing countries like China, South Africa.
  • Better Trade terms offered by competing countries.
  • Increased and better technological support and Rand D facility in competing countries.
  • Outdated Technology
  • Lack of Foreign Investment
• Major Initiatives:
  • Ambedkar Hastshilp Vikas Yojana: This scheme was launched with the objective of mobilising artisans into self-help groups and societies with the agenda of facilitating bulk production and economies in the procurement of raw materials.
  • Marketing Support and Services Scheme: This scheme provides interventions for domestic marketing events to artisans in the form of financial assistance that aids them in organising and participating in trade fairs and exhibitions across the country and abroad.
  • Production Linked Incentive (PLI) Scheme: The Union Cabinet has recently given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Textiles Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
  • National Technical Textile Mission: It aims to position the country as a global leader in technical textiles and increase the use of technical textiles in the domestic market.
  • SAMARTH (Scheme For Capacity Building In Textile Sector): To address the shortage of skilled workers, the government launched the Scheme for Capacity Building in Textile Sector (SCBTS) and named it SAMARTH Scheme.

Source: FE