Cottage & Rural Industries Policy 2016


To promote the growth and development of cottage and rural industries in Gujarat, with special emphasis on the socio-economic development of the people engaged in the sector through generation of supplementary employment opportunities, improvement in their quality of life, and preservation of traditional crafts as living heritage.

Policy Operative Period:- 2016 to 2021

  • To set up a Crafts Museum showcasing the exquisite arts and crafts of Gujarat and as a platform for outstanding craftsmanship of its artisan
  • To provide focused skill development to artisans through targeted training in design, production processes, marketing and business skills to enhance the marketability of their products
  • To strengthen and facilitate development of infrastructure to provide improved working environment to the artisans, increase the production capacities, enhance product quality and provide better market access
  • To provide improved tools and technology to the artisans to facilitate production of better products efficiently
  • To strengthen the 'Garvi Gurjari' brand to reflect a quality craftsmanship
  • To expand the marketing avenues for artisans and craftspersons by promoting craft clusters through tourism
  • To encourage and promote an entrepreneurial eco-system by incubating innovative ideas
  • To encourage Public Private Partnership (PPP) in the development of cottage and rural industries sector
  • To improve the socio-economic condition of women engaged in this sector by providing them special support and incentives
  • To facilitate enhanced livelihood opportunities to encourage the younger generation of artisans to continue practicing their traditional crafts
  • To ensure access to credit, comprehensive social security and welfare measures for the people engaged in the sector
  • To strengthen and provide financial assistance and credit support to industrial cooperatives working in this sector
  • To promote and propagate the use of Environment friendly products, raw materials and production processes
Policy Features:

Preservation and Revival of languishing crafts

Concept of "One Village One Product" (OVOP) to preserve languishing crafts like Rogan Art, Pithora Painting, Sujani and Mashroo fabric

Skill Development and Up-gradation
  • Modular certificate training programmes
  • Capacity Building of artisans
Design Development Support
  • Design Studios for artisans would be set up
  • Design Workshops would be conducted
Marketing Support and Craft Tourism

Participation of private retail-chains to expand marketing avenues

Providing space for sale of products at shopping malls/ complexes

Online sales through 'Gurjari e-Store' (

Credit Support
  • To promote self-employment under Shri Vajpayee Bankable Yojana (VBY) which provides credit support up to Rs. 8 Lakh, financial assistance up to Rs.1.25 Lakh for all viable projects
Infrastructure Development
  • The Package Scheme for providing financial assistance to the industrial cooperatives on the pattern of shared contribution, with a maximum assistance of Rs. 36 Lakh.
  • The Craft Business Development Center (CBDC) scheme - The State Government provides financial assistance of 70% and 30% contribution from artisan institutions on the project cost of up to Rs. 7 Crore.
  • The Cluster Development Scheme (CDS) - The State Government provides financial assistance of up to Rs. 79 Lakh per cluster for various components.
  • The Gramodyog Vikas Kendra (GVK) scheme - State government provides financial assistance of up to Rs. 13 Lakh per unit under various components at village level.
Technology and Innovation
  • To encourage grassroots innovation and entrepreneurship, directly through setting up of an Incubation Center through the partner institutions such as Centre for Innovation Incubation and Entrepreneurship (CIIE-IM-A, NID, NIFT, CEPT etc.
  • Start-up fund in collaboration with Gujarat Venture Finance Ltd. (GVFL).
Equipment, Tools and Production Support
  • Support to artisans in the form of subsidized production equipment, toolkits and raw material.
  • Handlooms and Charkhas provided to spinners and weavers on basis of 65% Government assistance and 35% beneficiaries contribution.
Social Security
  • The State Government would strive to extend the benefits of the various social security scheme for ensuring better living conditions for weavers, artisans and ancillary workers.
Special Incentives for Women
  • A Higher permanent rebate on sales of handicraft and handloom products and special rebate for 120 days on sales of handloom products to the co-operatives having 50% or More women members.
Environment friendly Products
  • Pilot projects would be undertaken for research and development of environment friendly products, techniques of production and processes
  • Clay idol making project to reduce pollution caused by plaster of Paris (POP)
Awards and Recognition
  • In four different categories of handloom and handicraft products the award winning artisans would be given a maximum cash prize of Rs. 1 Lakh.
  • Special award of Rs. 1 Lakh for 'Young Artisans' (up to the age of 35 years).
  • Higher financial reward of Rs. 1.25 Lakh to best woman artisan
  • To motivate and support the artisans practicing languishing crafts, a special award carrying a cash prize of Rs.1.51 Lakh

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