Press Information Bureau

Government of India

Ministry of Commerce & Industry

14-March-2016 17:31 IST

The Government is implementing the following schemes for bringing the rural industries under the ambit of the 'Make in India' programme:

(i) Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through Khadi & Village Industries Commission (KVIC), State Khadi & Village Industries Board (KVIB) and District Industries Centre (DIC).  Since inception and up to January 2016, 3.50 lakh micro enterprises have been set up by utilizing margin money amounting to ₹ 7004.40 crore and 29.82 lakh jobs have been created from these units.

(ii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was launched in 2005-06 for making Traditional Industries more productive and competitive by organizing the Traditional Industries and artisans into clusters. 26 clusters have been granted final approval with a total project cost of ₹ 72 crore benefiting around 25000 artisans.

(iii) A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE) was launched on 18.3.2015 to promote Innovation & Rural Entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation in the agro-based industry. During the year 2015-16, 22 LBIs & 2 TBIs have been approved and two LBI Centres have been operationalized at Deoria (U.P.) and Rajkot (Gujarat).

  Products of rural industries are already covered under extant laws & rules relating to trade & commerce including consumer protection.  Stand Up India scheme is meant to provide composite loans between ₹ 10 lakh to  Rs. 100 lakhs for setting up Greenfield enterprises in non-farm sector by SC/ST and women entrepreneurs.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

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Rural industry promotion under Make in India expands credit-linked subsidies, cluster support and incubators to boost rural micro-enterprises. Extension of rural industries into the Make in India programme is effected through a credit-linked subsidy model (PMEGP) delivered via KVIC, KVIB and DIC to establish micro-enterprises and generate employment; cluster-based support (SFURTI) to enhance traditional industries' productivity and competitiveness; and incubation plus start-up finance (ASPIRE) using LBIs, TBIs and a Fund of Funds to promote rural entrepreneurship, with rural industry products governed by existing trade and consumer protection frameworks and targeted composite loan schemes for disadvantaged entrepreneurs.