SFURTI (Scheme of Fund for Regeneration of Traditional Industries) – UPSC Notes
Introduction
SFURTI (Scheme of Fund for Regeneration of Traditional Industries) is a scheme launched by the Ministry of Micro, Small, and Medium Enterprises (MSME) in 2005 to promote and develop traditional industries and artisan clusters in India. The scheme aims to enhance the competitiveness, productivity, and marketability of traditional industries by providing financial assistance, skill development, and infrastructure support.
Objectives of SFURTI
- Revival of Traditional Industries – Support and promote traditional industries such as handicrafts, khadi, village industries, and coir-based products.
- Cluster Development – Organize artisans and traditional industry workers into clusters to improve productivity and sustainability.
- Technology Upgradation – Encourage the adoption of modern technology while preserving traditional skills.
- Market Linkages – Improve access to domestic and international markets for traditional products.
- Employment Generation – Create sustainable employment opportunities in rural and semi-urban areas.
Key Features of SFURTI
- Cluster-Based Approach – SFURTI supports the development of artisanal and traditional industry clusters to improve efficiency and production.
- Financial Assistance – Provides funding for infrastructure, common facility centers, marketing, branding, and technology upgradation.
- Skill Development & Training – Offers training programs for artisans to enhance their skills and productivity.
- Sustainable Model – Encourages eco-friendly and sustainable production methods to preserve the environment.
Types of Clusters under SFURTI
SFURTI focuses on three types of clusters, categorized based on the number of artisans and funding:
- Heritage Clusters – More than 1000 artisans; maximum funding up to ₹8 crore.
- Major Clusters – Between 500–1000 artisans; funding up to ₹3 crore.
- Mini Clusters – Less than 500 artisans; funding up to ₹1.5 crore.
Each cluster receives financial and technical support from the government through designated Implementing Agencies (IAs) and Technical Agencies (TAs).
Implementing Agencies & Nodal Agencies
- Nodal Agency – Khadi and Village Industries Commission (KVIC) is the primary nodal agency for implementing the scheme.
- Other Implementing Agencies – MSME Development Institutes, NGOs, state governments, and private institutions.
- Technical Agencies – Organizations that provide technical support, including design innovation, quality control, and marketing assistance.
Funding Pattern under SFURTI
- 100% financial assistance is provided by the Ministry of MSME.
- Funds are allocated for:
- Common Facility Centers (CFCs)
- Raw Material Banks
- Skill Development & Training
- Marketing & Branding
- Technology Upgradation
Recent Developments & Current Affairs (2023-2024)
- Expansion of SFURTI – The government has increased funding and expanded coverage to more than 450 clusters across India.
- Digital & E-Commerce Push – SFURTI clusters are now linked with e-commerce platforms to improve market reach.
- Increased Focus on Women Entrepreneurs – Special support is being given to clusters involving women artisans and SHGs (Self-Help Groups).
- Integration with ODOP (One District One Product) – SFURTI clusters are being aligned with the ODOP initiative to boost regional products and traditional crafts.
Achievements of SFURTI
- More than 3 lakh artisans have benefited from the scheme.
- Revival of declining traditional industries such as bamboo, khadi, and coir products.
- Improved access to modern technology, design innovation, and new markets.
- Creation of sustainable employment in rural areas, reducing migration to cities.
Challenges & Issues
- Lack of Awareness – Many artisans are unaware of the scheme’s benefits.
- Market Competition – Traditional products face stiff competition from mass-produced and imported goods.
- Delays in Fund Utilization – Bureaucratic delays in fund allocation slow down cluster development.
- Need for Design & Branding Support – Traditional industries need better branding and marketing strategies to compete in global markets.
Way Forward
- Strengthening Market Linkages – Improve domestic and international market access through government and private partnerships.
- Better Training & Skill Development – Increase training programs to enhance artisans’ productivity and product quality.
- Improved Technology Adoption – Encourage artisans to adopt modern tools and digital platforms for business growth.
- Policy Support & Faster Implementation – Streamline processes to ensure faster implementation of projects.
Conclusion
SFURTI is a transformational initiative for reviving traditional industries and promoting rural entrepreneurship. By providing financial support, skill development, and market linkages, it has helped millions of artisans sustain their livelihoods. With increased awareness and better implementation, SFURTI can play a key role in India's self-reliance (Atmanirbhar Bharat) and Make in India initiatives.
