Empowering Artisans: The PM Vishwakarma Scheme Explained

Overview of the Artisan Assistance Scheme

The Prime Minister has recently unveiled a significant initiative, launching a Rs.13,000 crore scheme designed to support artisans and craftsmen across India. This scheme aims to enhance the livelihood and skills of traditional craft workers.

Key Features of the Scheme

This comprehensive assistance program includes various benefits aimed at empowering artisans:

• Collateral-free Credit: Artisans can access up to Rs.3 lakh in credit at a concessional interest rate of 5%.
• Recognition: Participants will receive PM Vishwakarma certificates and ID cards to acknowledge their craftsmanship.
• Skill Enhancement: The scheme offers both basic and advanced training opportunities.
• Toolkit Incentive: Artisans will be provided with toolkits worth Rs.15,000 to aid their work.
• Loan Tranches: The credit support is divided into two tranches: Rs.1 lakh initially and Rs.2 lakh subsequently, contingent on timely repayment.
• Digital and Marketing Support: Incentives are available for digital transactions, alongside marketing assistance to increase visibility.

Categories of Artisans Covered

The scheme encompasses a diverse range of traditional craftspeople across 18 categories, including but not limited to:

• Carpenters
• Blacksmiths
• Potters
• Tailors
• And many more.

Repayment Conditions

To qualify for the second tranche of Rs.2 lakh, artisans must repay the initial Rs.1 lakh loan within 18 months. This condition ensures financial discipline and encourages timely repayments.

Promoting Local Products

The Prime Minister has emphasized the significance of purchasing locally-made products. He called upon citizens to be 'vocal for local,' especially during the festive season, to promote indigenous goods and support local artisans.

Frequently Asked Questions (FAQs)

Q1. What is the main objective of the artisan assistance scheme?
Answer: The scheme aims to uplift traditional artisans by providing financial support, skill training, and recognition to enhance their livelihoods and promote local craftsmanship.

Q2. How much collateral-free credit can artisans avail?
Answer: Artisans can access collateral-free credit of up to Rs.3 lakh at a concessional interest rate of 5% under the scheme.

Q3. What is the toolkit incentive provided to artisans?
Answer: The scheme offers a toolkit incentive of Rs.15,000 to assist artisans with their work and enhance their productivity.

Q4. How many categories of artisans are covered under the scheme?
Answer: The scheme covers 18 categories of artisans, including carpenters, blacksmiths, potters, and tailors, among others.

Q5. What must artisans do to qualify for the second loan tranche?
Answer: Artisans must repay the Rs.1 lakh loan from the first tranche within 18 months to be eligible for the subsequent Rs.2 lakh tranche.

UPSC Practice MCQs

Question 1: What is the interest rate for collateral-free credit under the artisan scheme?
A) 3%
B) 4%
C) 5%
D) 6%
Correct Answer: C

Question 2: How much toolkit incentive is provided to artisans?
A) Rs.10,000
B) Rs.12,000
C) Rs.15,000
D) Rs.20,000
Correct Answer: C

Question 3: Which of the following is NOT a category covered under the artisan scheme?
A) Blacksmiths
B) Tailors
C) Engineers
D) Potters
Correct Answer: C

Question 4: What must artisans do to receive the second tranche of credit?
A) Complete training
B) Repay the first tranche
C) Increase production
D) Register their business
Correct Answer: B

Question 5: How much credit is offered in the first tranche?
A) Rs.50,000
B) Rs.1 lakh
C) Rs.2 lakh
D) Rs.3 lakh
Correct Answer: B

Question 6: What is the primary goal of the artisan assistance scheme?
A) To promote foreign goods
B) To support local artisans
C) To increase taxes
D) To reduce exports
Correct Answer: B

Question 7: How long do artisans have to repay the first loan tranche?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Correct Answer: C