Why in the News?

The Union Govt. has called on a meeting with states and bank officials to discuss the implementation of PM Vishwakarma scheme.

Vishwakarma Yojana:

1. The scheme seeks to support traditional artisans and craftsmen which is to be implemented under three ministries:
   • Ministry of MSME
   • Ministry of Skill development
   • Ministry of Finance
2. The scheme has been launched for a period of five years up to 2027-28 financial year.
3. It is aimed at benefiting individuals skilled in traditional craftsmanship particularly from the OBC community.
4. Beneficiaries
   • The beneficiaries of the scheme shall include Weavers, goldsmiths, blacksmiths, laundry workers, barbers, and such families covering 18 traditional trades across rural and urban areas and is projected to reach out to 30 lakh artisan families.
5. To nurture the “Guru-Shishya parampara”.
   • It fosters to strengthen and nurture the “guru-shishya parampara” (teacher-pupil tradition) or family-based practice of traditional skills by artisans and craftspeople working with their hands and tools.
6. Integration with wider market with the aid of digital technology
   • The scheme outlays to improve the quality and reach of products and services of artisans and craftspeople.
   • Enhancing the “Vishwakarmas” (craftspeople) integration with the domestic and global value chains.
7. Recognition and Financial support
   • These artisans and craftspeople will be provided recognition through PM Vishwakarma certificate and identity card along with a collateral-free credit support of up to Rs 1 lakh (in the first tranche) and Rs 2 lakh (in the second tranche) at a concessional interest rate of 5%.
8. Improvisation of Skill-set
   • Upgrade their skill-set by providing training for 4-5 days and give incentives for digital transactions and marketing support.
   • A stipend of Rs 500 will be provided for skill-training and Rs 1,500 to purchase modern tools

The issues that the scheme seeks to address:

1. Unorganised production base
2. Limited market opportunities
3. Low education of the artisans
4. Outdated production methods and lack of modernization efforts
5. Lack of funding
6. Lack of quality raw materials
7. Lack of market linkages
8. Dominance of middlemen
9. Information asymmetry to understand market needs
10. High production cost

New Opportunities lying ahead:

1. Emerging demand for crafts-goods in developed countries such as USA, Canada, Britain, France, Germany, Italy etc.
2. Rising demand and usage of handicrafts products in fashion industry.
3. Development of sectors like Retail, Real Estate that offers great requirements of handicrafts products.
4. Developing of domestic and international tourism sector.
5. E-Commerce and Internet are emerged as promissory distribution channels to market and sell the craft products

MCQ: