“Gujarat’s new loan scheme under the Cottage and Rural Industries Policy 2024 boosts artisan support with increased loans up to ₹25 lakh, enhanced subsidies, and market access initiatives. Targeting 12 lakh jobs, the policy aims to elevate handicraft sales to ₹1,500 crore in five years while promoting skill development and e-commerce integration for rural craftsmen.”
Gujarat’s Ambitious Plan to Uplift Rural Artisans with New Financial Support
The Gujarat government has rolled out an ambitious initiative to bolster the state’s rural artisans and craftsmen under the New Cottage and Rural Industries Policy 2024, announced on June 12, 2025. This comprehensive policy aims to empower artisans by providing enhanced financial assistance, improved market access, and skill development opportunities, with a goal to create 12 lakh jobs over the next five years.
A cornerstone of the policy is the significant increase in loan limits under the Vajpayee Bankable Yojana 2.0, where artisans and small industries can now access loans up to ₹25 lakh, a substantial jump from the previous cap of ₹8 lakh. Additionally, subsidies have been tripled, rising from ₹1.25 lakh to ₹3.75 lakh, aimed at fostering entrepreneurship and sustaining traditional crafts. The Dattopant Thengadi Artisan Interest Subsidy Scheme, specifically tailored for handloom and handicraft artisans, has also seen its loan ceiling raised from ₹1 lakh to ₹3 lakh, enabling craftsmen to invest in tools, materials, and production capacity.
The policy emphasizes market expansion, with the state targeting a rise in handicraft and handloom sales from ₹460 crore to ₹1,500 crore within five years. To achieve this, the government plans to register 5,000 artisans on major e-commerce platforms, facilitating nationwide and global sales. The construction of the PM Ekta Mall in Surat, a ₹280-crore project, will provide artisans with a dedicated space to showcase their products, complete with 98 showrooms and dormitory facilities to support visiting craftsmen.
Skill development is another key focus, with plans to train 60,000 micro-entrepreneurs over the next five years to enhance their technical and business acumen. The One District, One Product (ODOP) initiative will involve 10,000 beneficiaries, promoting unique handicrafts from each of Gujarat’s 33 districts. Additionally, the state will conduct an artisan census to identify and support potential beneficiaries, ensuring targeted assistance reaches those in need.
To protect intellectual property and boost the market value of traditional crafts, the policy encourages artisans to obtain Geographical Indication (GI) tags. Around 2,500 artisans will receive export incentives to promote Gujarat’s handloom and handicraft products globally, while 5,000 small manufacturers will benefit from compensatory assistance to compete in a dynamic market. The government will also organize exhibitions and fairs led by national award-winning artisans to enhance visibility and sales.
This initiative aligns with the broader vision of Aatmanirbhar Bharat, promoting self-reliance by strengthening the rural economy and preserving Gujarat’s rich cultural heritage. By integrating digital platforms, enhancing financial support, and fostering innovation, the policy aims to create a self-sustaining ecosystem for artisans, ensuring their crafts thrive in both local and international markets.
Disclaimer: This article is based on information sourced from recent announcements by the Gujarat government and reports from credible news outlets. The data and projections are subject to change based on official updates. Readers are advised to verify details through government portals for the most accurate information.