PM Vishwakarma Scheme: Empowering Traditional Artisans

The PM Vishwakarma Scheme, launched by the Hon’ble Prime Minister Narendra Modi on September 17, 2023, on the occasion of Vishwakarma Jayanti, is a landmark initiative designed to uplift traditional artisans and craftspeople across India. This ambitious central sector scheme, with an outlay of ₹13,000 crore, aims to preserve and promote the rich heritage of diverse traditional crafts by providing comprehensive support to the ‘Vishwakarmas’ – the skilled men and women who are the backbone of India’s indigenous crafts ecosystem. It integrates artisans into the formal economy, fostering skill development, providing access to credit, and enabling market linkages, thereby ensuring their socio-economic empowerment and the continuity of their invaluable traditional skills.

Understanding the PM Vishwakarma Scheme

• The PM Vishwakarma Scheme is a holistic initiative focused on supporting traditional artisans and craftspeople, often referred to as ‘Vishwakarmas’, who work with their hands and traditional tools.

• Launched on Vishwakarma Jayanti, September 17, 2023, the scheme is a fully funded Central Sector Scheme with an allocation of ₹13,000 crore for a period of five years (FY 2023-24 to FY 2027-28).

• It aims to strengthen and nurture the ‘guru-shishya’ parampara (master-apprentice tradition) of traditional skills and crafts, passing them from one generation to the next, while also integrating them with modern technology and market demands.

• The scheme is implemented by the Ministry of Micro, Small, and Medium Enterprises (MSME), in collaboration with other relevant ministries and departments, to ensure wide reach and effective delivery of benefits.

Key Objectives and Pillars

• Skill Development: To provide skill training (basic and advanced) to artisans, enhancing their capabilities and helping them adopt modern techniques while preserving traditional craftsmanship.

• Financial Inclusion: To ensure easy access to collateral-free credit at concessional interest rates, reducing their dependence on informal credit sources and promoting entrepreneurial growth.

• Toolkit Modernization: To offer incentives for purchasing modern tools, replacing outdated equipment, and improving the efficiency and quality of their work.

• Market Linkages: To facilitate better market access for their products and services, including integration with e-commerce platforms, participation in trade fairs, and quality certification.

• Digital Empowerment: To encourage the adoption of digital transactions among artisans, fostering financial literacy and seamless business operations.

• Preservation of Heritage: To protect and promote India’s diverse cultural heritage embedded in traditional crafts, ensuring these skills thrive in the contemporary economy.

Eligibility Criteria and Target Beneficiaries

• Beneficiaries: Individual artisans and craftspeople engaged in one of the 18 identified traditional trades are eligible.

• Age Limit: The minimum age for registration is 18 years.

• Non-Beneficiary Clause: The individual should not have availed loans under similar central or state schemes for self-employment/business development in the last five years.

• Family Clause: Only one member from a family can avail the benefits of the scheme. A ‘family’ is defined as a husband, wife, and their unmarried children.

• Government Employment: Persons employed in government service and their family members are not eligible.

• Identified Trades (18):

• Carpenter (Sutar/Badhai)

• Boat Maker

• Armoursmith

• Blacksmith (Lohar)

• Hammer and Tool Kit Maker

• Locksmith

• Goldsmith (Sonar)

• Potter (Kumhar)

• Sculptor (Moortikar, stone carver, stone breaker)

• Cobbler/Shoesmith/Footwear artisan (Charmkar)

• Mason (Rajmistri)

• Basket/Mat/Broom Maker/Coir Weaver

• Doll & Toy Maker (traditional)

• Barber (Nai)

• Garland Maker (Malakar)

• Washerman (Dhobi)

• Tailor (Darzi)

• Fishing Net Maker

Components of the Scheme: What Artisans Receive

• Recognition through PM Vishwakarma Certificate & ID Card: Validates their identity as traditional artisans under the scheme.

• Skill Upgradation:

• Basic Training: 5-7 days of training, including modular courses to enhance existing skills and introduce modern techniques.

• Advanced Training: 15+ days of specialized training for those who complete basic training and wish to further refine their craft.

• Stipend: A stipend of ₹500 per day is provided to beneficiaries during the training period to compensate for lost wages.

• Toolkit Incentive:

• Financial support up to ₹15,000 is provided to beneficiaries to purchase modern and efficient tools, improving productivity and product quality.

• Credit Support:

• First Tranche: Collateral-free enterprise development loan of up to ₹1 lakh, with a repayment period of 18 months, at a concessional interest rate of 5%.

• Second Tranche: For those who successfully repay the first loan, a second collateral-free enterprise development loan of up to ₹2 lakh is available, with a repayment period of 30 months, also at 5% interest.

• Interest Subvention: The Government of India provides an interest subvention of 8% to the banks.

• Marketing Support:

• Assistance for quality certification, branding, onboarding on e-commerce platforms, and participation in trade fairs, exhibitions, and buyer-seller meets to expand market reach both domestically and globally.

• Digital Transaction Incentive:

• An incentive of ₹1 per eligible digital transaction, up to a maximum of 100 transactions per month, is provided to encourage digital payment adoption.

Significance and Impact

• Socio-Economic Upliftment: Provides a structured pathway for artisans to improve their livelihoods, reduce poverty, and integrate into the mainstream economy.

• Preservation of Cultural Heritage: Ensures the continuity of traditional arts and crafts by making them economically viable and attractive to younger generations.

• Entrepreneurship Promotion: Empowers artisans to become micro-entrepreneurs by providing necessary capital, skills, and market access.

• “Vocal for Local” and Make in India: Aligns with the government’s vision of promoting local products and services, boosting the domestic manufacturing and MSME sectors.

• Gender Empowerment: A significant number of traditional artisans are women, and the scheme empowers them economically, enhancing their decision-making capacity and social standing.

Role in India’s Economic Growth and Preserving Heritage

• The PM Vishwakarma Scheme is instrumental in recognizing the contribution of traditional artisans to India’s informal economy and bringing them into the formal fold.

• By fostering ‘local to global’ value chains, it helps Indian handcrafted products compete in international markets, boosting exports and earning foreign exchange.

• The scheme is a crucial step towards realizing the vision of ‘Aatmanirbhar Bharat’ (Self-Reliant India) by strengthening indigenous industries and promoting self-employment.

• It also plays a vital role in preserving intangible cultural heritage, ensuring that the unique skills and stories embedded in Indian crafts are passed down through generations, enriching the nation’s cultural fabric.

How to Apply and Implementation

• Registration: Eligible artisans can register themselves at Common Service Centres (CSCs) free of charge. The application process involves Aadhaar-based e-KYC.

• Vetting: The applications are vetted by Gram Panchayat/ULB-level committees for recommendation.

• Implementation Framework: The scheme is centrally implemented with robust monitoring mechanisms involving district-level committees and regular progress reviews to ensure transparency and accountability.

Frequently Asked Questions (FAQs)

1. What is the primary objective of the PM Vishwakarma Scheme?

The primary objective is to empower traditional artisans and craftspeople by providing skill training, financial support, modern tools, and market linkages. It aims to integrate them into the formal economy and preserve India’s rich craft heritage.

2. What kind of financial assistance is provided under the scheme?

Artisans receive a toolkit incentive of ₹15,000. They can also avail collateral-free enterprise development loans: up to ₹1 lakh (first tranche) and up to ₹2 lakh (second tranche) at a concessional interest rate of 5%.

3. Which trades are covered by the PM Vishwakarma Scheme?

The scheme covers 18 traditional trades, including Carpenter, Blacksmith, Goldsmith, Potter, Sculptor, Cobbler, Mason, Barber, Washerman, Tailor, and others engaged in similar manual crafts and tool-based work.

4. How does the scheme support skill development?

It provides basic training (5-7 days) and advanced training (15+ days) to enhance traditional skills and introduce modern techniques. A stipend of ₹500 per day is also given to beneficiaries during the training period.

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