Gujarat govt announces new cottage, rural industry policy to increase sales, preserve handicrafts
Aimed at developing the state’s cottage industry, the policy lists initiatives such as increasing loan amounts for artisans, facilitating GI tags for unique products

The Gujarat government announced its new Cottage and Rural Industries policy for the next five years on Wednesday. The policy aims to develop a dynamic and self-sustaining cottage industry sector in the state with an enhanced market share in the domestic and international markets and preserve the state’s languishing handicrafts.
The policy was announced by Minister of Cottage Industries Balvantsinh Rajput and Minister of State for Cottage Industries Jagdish Panchal.
“The mission of this policy is to promote and preserve the cultural heritage of handicrafts, khadi, and handlooms of Gujarat through an enabling and conducive environment and to increase opportunities in this sector through the availability of credit support, market support, development of infrastructure facilities, skill development, technology upgradation, and innovation,” said an official statement.
Among other announcements, the policy lists an increase in loan and subsidy amounts in order to increase self-employment opportunities. Under the Shri Vajpayee Bankable Scheme, the loan amount has been increased from Rs 8 lakh to Rs 25 lakh. Similarly, the subsidy amount under the scheme has been upped from Rs 1.25 lakh to Rs 3.75 lakh.
Under the Dattopant Thengadi Artisan Interest Subsidy Scheme, the maximum loan amount for providing working capital loans to artisans of handloom and handicrafts has been increased from Rs 1 lakh to Rs 3 lakh.
The policy aims to provide skill development training to over 60,000 new entrepreneurs in the next five years. Meanwhile, under the One District One Product (ODOP) scheme, 10,000 entrepreneurs per district are envisioned to help with the promotion of unique products.
A statement issued by the department said. “Following the Prime Minister’s mantra of Local for Vocal, the work of constructing P M Ekta Mall in Surat, Gujarat at a cost of Rs 280 crores has started in an area of 2.72 lakh square feet… a total of 98 showrooms will be built for ODOP products of 33 districts of the state, 28 districts of the country and eight Union Territories as well as government enterprises such as Forest Department, Khadi and Village Industries etc. PM Ekta Mall will have facilities like a dormitory for living arrangements for artisans, one-room kitchen flats, and commercial spaces (as per the requirement for multiplexes and game zones).”
Also, the policy states plans to construct a craft museum in Gandhinagar, and conduct a census of artisans who make khadi, handloom, and handicrafts. It also aims to increase the sales of such artisans associated with boards/corporations and cooperatives from the current Rs 460 crore to Rs 1,500 crore.
Artisans will be facilitated to obtain a GI Tag certificate to protect the intellectual property rights of products. Handicraft and handloom products having a GI (geographical indication) Tag certificate will be encouraged and promoted as specialised products, the statement said.
On skill upgradation of the artisans under the new policy, the statement stated, “Refresher and orientation training will be given to the trainers every year so that they are updated with the latest market trends… Training programs will be organized for new artisans by National Award winners, National Qualification Certificate holders, and State Award winners.”