New cottage and rural industries policy to create 1.2 million jobs in Gujarat

On Wednesday, the Gujarat government unveiled its new Cottage and Rural Industries Policy, aimed at supporting artisans and entrepreneurs with higher loans, subsidies, and improved market access. Minister of Cottage Industries, Mr. Balwantsinh Rajput, announced that the policy, which will remain in effect for five years, targets creating around 12 lakh jobs by developing a self-sustaining cottage industry sector. The scheme offers increased loans, with the maximum loan amount raised from US$ 9,480.47 (Rs. 8 lakh) to US$ 29,626.47 (Rs. 25 lakh), while subsidies have been enhanced from US$ 1,481.32 (Rs. 1.25 lakh) to US$ 4,443.97 (Rs. 3.75 lakh). These measures will generate 3.3 lakh direct and indirect job opportunities over the next five years.

The policy also includes provisions to promote handloom and handicraft industries, with an increase in the loan cap under the 'Dattopant Thengadi Artisan Interest Subsidy Scheme' for artisans from US$ 1,185.06 (Rs. 1 lakh) to US$ 3,555.18 (Rs. 3 lakh). Additionally, nearly 60,000 microentrepreneurs will receive skill development training. The state aims to increase handicraft and handloom sales value from US$ 54.5 million (Rs. 460 crore) to US$ 177.8 million (Rs. 1,500 crore) in the next five years. Key initiatives include building the PM Ekta Mall in Surat at a cost of US$ 33.2 million (Rs. 280 crore) to support artisans and registering 5,000 artisans on e-commerce platforms to expand their market reach. Other measures include compensatory assistance for small manufacturers, export incentives for 2,500 artisans, and a census to identify potential beneficiaries. The policy also focuses on obtaining Geographical Indication (GI) tags to protect intellectual property rights.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.