Policy Update
Riya Rawat
Background
The Pradhan Mantri Vishwakarma (PM Vishwakarma) scheme, launched on September 17, 2023, is a pivotal government initiative targeting India’s vast community of artisans and craftspeople, traditionally referred to as “Vishwakarmas.” These individuals are engaged in trades passed down through generations, including blacksmithing, pottery, carpentry, masonry, and tailoring. The scheme recognizes the socio-economic and cultural value of this demographic and seeks to transition artisans into a more formalized, economically empowered workforce through skill development, financial assistance, digital integration, and structured market access.
With an initial budget allocation of INR 13,000 crore over five years, the scheme aims to support approximately 3 million artisans nationwide. The Ministry of Micro, Small, and Medium Enterprises (MoMSME) serves as the nodal ministry, working in collaboration with the Ministry of Skill Development and Entrepreneurship (MSDE) and the Department of Financial Services (DFS). By supporting artisans in rural and underserved regions, PM Vishwakarma also seeks to preserve India’s unique artisanal heritage while enhancing the livelihoods and social mobility of these communities.
Functioning
The PM Vishwakarma scheme operates through a comprehensive, multi-layered support structure aimed at improving artisanal skills, enhancing access to financial resources, and facilitating market entry. The program encompasses several key elements:
- 1. Skill Assessment and Training: The scheme begins with an assessment to gauge each artisan’s current skill level, followed by tailored training modules. The training is divided into:
– Basic Training: A 40-hour program over five to seven days, designed to sharpen foundational skills, modernize techniques, and expose artisans to efficient tools.
– Advanced Training: Available for those seeking further enhancement, this 120-hour program delves into entrepreneurial knowledge, financial literacy, and digital skills, equipping artisans to expand their trade or transition into small-scale business ventures. - Toolkit Incentive: To complement skill enhancement, the scheme provides an incentive of INR 15,000, enabling artisans to acquire modern tools suited to their specific trades. This incentive is issued through digital vouchers redeemable at designated centers, ensuring artisans are equipped to meet contemporary production standards.
- Financial Support: Recognizing the need for accessible credit, PM Vishwakarma offers collateral-free loans through a two-tranche system. Artisans who complete basic training become eligible for an initial loan of INR 1 lakh, while those maintaining standard loan accounts and completing advanced training or adopting digital transactions can access an additional INR 2 lakh. The concessional interest rate of 5% encourages artisans to formalize and scale their operations.
- Digital Empowerment and Market Integration: The scheme incentivizes digital payments, providing a cashback of Re. 1 per eligible transaction (up to 100 monthly) to encourage digital literacy and enhance financial accessibility. Additionally, the National Committee for Marketing (NCM) provides branding and marketing support, linking artisans to online marketplaces like the Open Network for Digital Commerce (ONDC) and platforms such as GeM, thereby extending their market reach and customer base.
Further details on these components and additional provisions of the PM Vishwakarma scheme can be found in the official guidelines documents: PM Vishwakarma Scheme Guidelines and PM Vishwakarma Scheme Overview.
Performance
Since its inception, PM Vishwakarma has made notable progress in supporting artisans and craftspeople across India. As of recent reports, approximately 350,000 artisans have participated in skill training programs, with women constituting 68% of beneficiaries. The scheme has observed high participation in trades like tailoring, where more than 95% of women beneficiaries have enrolled.
Below is a bar chart illustrating the gender distribution of beneficiaries under the scheme:
Data sourced from a Business Standard article published on May 6, 2024.
PM Vishwakarma: At 68%, women beneficiaries outshine men in skill training.
Regionally, states such as Karnataka, Gujarat, and Jammu & Kashmir have seen significant registration and training completion rates, reflecting the scheme’s reach in these areas. Karnataka, for instance, accounts for 83,067 beneficiaries, followed by Gujarat with 56,221 and Jammu & Kashmir with 55,856. By contrast, states like Tamil Nadu and West Bengal have seen minimal engagement, indicating regional imbalances in awareness and access to scheme resources.
The scheme’s dashboard data provides insights into its coverage and disbursement, highlighting a growing impact but also underscoring the need for more targeted outreach to achieve the goal of 3 million registered artisans. This demographic disparity suggests a broader challenge of accessibility, particularly in regions with traditionally lower digital literacy rates or limited financial infrastructure.
Impact
The PM Vishwakarma scheme has had a multifaceted impact on India’s artisan community, providing both economic and social benefits:
- Economic Empowerment: The scheme’s financial support has allowed artisans to scale their businesses, increase productivity, and enhance the quality of their products. By formalizing their status with government-issued identity cards and certifications, artisans gain a recognized position within the economy, improving employability and establishing a credit profile for future financial opportunities.
- Cultural Preservation: By supporting traditional crafts and integrating modern techniques, PM Vishwakarma helps sustain these culturally significant trades. The inclusion of skill upgrades, digital literacy, and financial incentives supports a balanced approach that values tradition while enabling artisans to adapt to modern market demands.
- Social Inclusion and Gender Equity: The scheme has achieved a considerable milestone in empowering women, who make up the majority of beneficiaries in certain trades. This represents a step toward economic gender equity, particularly in rural regions where women artisans are more prevalent. Additionally, PM Vishwakarma has focused on marginalized communities, including Scheduled Castes and Scheduled Tribes, supporting broader inclusivity within India’s economic landscape.
Emerging Issues
- Limited State-Level Adoption: Some states, particularly in northern and eastern India, have reported low registration numbers, pointing to regional gaps in awareness and implementation.
- Financial Access Barriers: Certain artisans continue to face challenges in accessing formal credit, highlighting the need for simplified loan processes and broader outreach to financial institutions in rural regions.
- Underutilization of Toolkits: The introduction of modern tools requires additional support in terms of training and maintenance, especially for artisans unfamiliar with advanced equipment.
- Digital Divide: Despite the digital transaction incentives, low digital literacy remains a barrier in many areas, affecting artisans’ ability to adopt cashless payment systems and limiting the full potential of financial inclusivity.
- Market Accessibility: Artisans, especially those in rural areas, still face challenges in connecting to urban or international markets, where demand and prices may be higher.
- Regional Disparities in Implementation: Implementation has been slow in certain states, with regions such as Tamil Nadu and West Bengal showing minimal registrations. Government efforts are underway to address these disparities by increasing awareness and outreach, particularly in low-participation areas.
Addressing these issues will require an integrated approach, involving collaboration between local government, financial institutions, and community organizations to support awareness, simplify access to credit, and strengthen digital and market linkages.
Way Forward
The PM Vishwakarma scheme has the potential to transform India’s artisanal sector by empowering craftsmen and ensuring that traditional trades remain viable in a modern economy. Going forward, expanding outreach, particularly in states with low registration, and improving digital and financial literacy will be critical. Providing regionalized interventions tailored to each state’s unique demographic will further boost participation.
In addition, facilitating direct access to urban and international markets will help artisans achieve fair prices for their products, enabling greater profitability and sustainability. A continued focus on digital empowerment and credit support will provide artisans with the resources needed to thrive in a competitive landscape, ultimately fulfilling the scheme’s goal of creating a sustainable, inclusive, and vibrant artisanal sector that enriches India’s economic and cultural heritage.
Selected References and Important Links
- Singh, R. (2024). “PM Vishwakarma: At 68%, women beneficiaries outshine men in skill training.” Business Standard. https://www.business-standard.com/article-webview/india-news/pm-vishwakarma-at-68-women-beneficiaries-outshine-men-in-skill-training-124050600353_1.html
- Economic Times Staff. (2023). “How PM Vishwakarma Scheme is creating a new India with skilled artisans and craftsmen.” Economic Times. https://economictimes.indiatimes.com/small-biz/sme-sector/how-pm-vishwakarma-scheme-is-creating-a-new-india-with-skilled-artisans-and-craftsmen/articleshow/113541736.cms?from=mdr
- Economic Times Staff. (2024). “Sustainability, self-reliance emerge as top takeaways for MSMEs at Pune edition of ET Make in India SME Regional Summit.” Economic Times. https://economictimes.indiatimes.com/small-biz/sme-sector/sustainability-self-reliance-emerge-as-top-takeaways-for-msmes-at-pune-edition-of-et-make-in-india-sme-regional-summit/articleshow/114571342.cms
- Ministry of Micro, Small, and Medium Enterprises. (2023). “PM Vishwakarma Guidelines for Implementation.” Government of India. https://pmvishwakarma.gov.in/cdn/MiscFiles/eng_v30.0_PM_Vishwakarma_Guidelines_final.pdf
- India.gov.in. (2024). “Pradhan Mantri Vishwakarma Scheme.” Government of India Portal. https://www.india.gov.in/spotlight/pradhan-mantri-vishwakarma-scheme
- PM Vishwakarma Official Website. (2024). Government of India. https://pmvishwakarma.gov.in/
- Financial Express Staff. (2024). “Vishwakarma Puja: PM Vishwakarma Scheme for artisans, craftsmen, MSME bank loan.” Financial Express. https://www.financialexpress.com/business/sme/vishwakarma-puja-pm-vishwakarma-scheme-artisans-craftsmen-msme-bank-loan/3613242/
- Mint Staff. (2024). “PM Vishwakarma Yojana: PM VIKAS MSME Government Scheme Investments.” Mint. https://www.livemint.com/money/personal-finance/pm-vishwakarma-yojana-pm-vikas-msme-government-scheme-investments-vishwakarma-jayanti-11708079719496.html
- The Hindu Staff. (2024). “PM Vishwakarma scheme intends to make nationalised banks pro-people, says Kota Srinivas Poojary.” The Hindu. https://www.thehindu.com/news/cities/Mangalore/pm-vishwakarma-scheme-intends-to-make-nationalised-banks-pro-people-once-more-says-kota-srinivas-poojary/article68810720.ece
- Prime Minister’s Office. (2024). “PM’s address at National PM Vishwakarma Programme in Wardha, Maharashtra.” PM India Official Website. https://www.pmindia.gov.in/en/news_updates/pms-address-at-national-pm-vishwakarma-programme-in-wardha-maharashtra/
- Press Information Bureau. (2024). “Highlights of the PM Vishwakarma Scheme.” Government of India. https://pib.gov.in/PressReleasePage.aspx?PRID=2057040
- National Skill Development Corporation. (2024). “PM Vishwakarma Yojana Overview.” NSDC India. https://nsdcindia.org/pmvishwakarma.html
About the Author– Riya Rawat is a research intern at the Impact and Policy Research Institute (IMPRI), pursuing a second master’s degree in Political Science. With a strong background in public policy, gender studies, and international relations, her research interests focus on policy development, analysis, and global affairs.
Acknowledgement– The author extends sincere gratitude to Dr. Arjun Kumar and Aasthaba Jadeja for their invaluable guidance and support.
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