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Initiative Under Gramodyog Vikas Yojana

  • 01 Aug 2020
  • 3 min read

Why in News

Recently, the Ministry of Micro, Small and Medium Enterprises has approved a programme for the benefit of artisans involved in manufacturing of Agarbatti under the Gramodyog Vikas Yojana.

Key Points

  • Description:
    • The programme will initially include four pilot projects, including one in the north eastern part of the country.
    • Khadi and Village Industries Commission (KVIC) will provide training and assistance as well as work and raw material to artisans working in this area, in tie-up with Agarbatti manufacturing machines.
      • KVIC is a statutory body established by Khadi And Village Industries Commission Act, 1956. It is an apex organisation under the Ministry of Micro, Small and Medium Enterprises charged with the planning, promotion, organisation and implementation of programs for the development of Khadi and other village industries in the rural areas
  • Benefits:
    • Revival of Agarbatti manufacturing in the villages and small towns.
    • Generation of sustainable employment and increase in wages for the traditional Artisans.
    • Mitigation of the gap between the indigenous ‘production and demand’.
    • Reduction in import of ‘Agarbatti’ in the country.
  • Background:
    • The Govt of India had earlier placed the ‘Agarbatti’ item from “Free” trade to “Restricted” trade in the import policy and enhanced the import duty from 10% to 25% on ‘round bamboo sticks’ used for manufacturing of Agarbatti.

Gramodyog Vikas Yojana

  • Gramodyog Vikas Yojana is one of the two components of Khadi Gramodyog Vikas Yojana which aims to promote and develop the village industries through common facilities, technological modernization, training etc.
  • Components of Gramodyog Vikas Yojana:
    • Research & Development and Product Innovation: R&D support would be given to the institutions that intend to carry product development, new innovations, design development, product diversification processes etc.
    • Activities of existing dedicated verticals of Village Industries: This includes Agro Based & Food Processing Industry, Mineral Based Industry, Handmade Paper, Leather & Plastic Industry among others.
    • Capacity Building: Under the Human Resource Development and Skill Training components, exclusive capacity building of staff as well as the artisans.
    • Marketing & Publicity: The village institutions will be provided market support by way of preparation of product catalogue, Industry directory, market research, new marketing techniques, buyer seller meet, arranging exhibitions etc.

Source : PIB

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