Lok Sabha Question No. 134 (UNSTARRED), answered on 2023-07-20
Subject: Cottage and Small Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ashok Mahadeorao Nete

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 134 TO BE ANSWERED ON 20.07.2023

## COTTAGE AND SMALL INDUSTRIES

134. SHRI ASHOK MAHADEORAO NETE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Union Government has taken or proposes to take any steps to encourage cottage and small scale industries and export of manufactured goods to prevent migration from rural areas of the country; and
- (b) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a) & (b): For  development  and  encouragement  of  the  micro  industries  in  the  country,  the Government,  through  Khadi  and  Village  Industries  Commission  (KVIC),  has  taken  following initiatives to prevent migration from rural areas of the country:
1. GramodyogVikasYojana: KVIC imparts skill development training to rural and traditional artisans in various rural /traditional industries and provides advanced tools and equipment and other hand holding support through various verticals like Honey Mission/Beekeeping Programme, Kumbhar Sashaktikaran Programme/ Pottery Programme, Agarbatti Programme, Leather Programme, etc. to develop and promote entrepreneurship among rural people.
2. Capacity  Building  of  unemployed  people:  KVIC  through  its  Departmental  and  NonDepartmental training centres conduct Skill Development Programmes (SDP) and Entrepreneurship  Awareness  Programme  (EAP)  in  the  country  for  unemployed  youth  to generate self-employment opportunities in traditional industries such as soap and detergent making, Khadi spinning and weaving, baking and cake making, achar and papad making, etc.
3. Prime Minister's Employment Generation Programme (PMEGP): Under PMEGP, General Category beneficiaries can avail Margin Money subsidy of 25% of the project cost in rural areas  and  15% in  urban  areas.    For  beneficiaries  belonging to  Special  Categories  such  as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen, Differently-abled persons, beneficiaries belonging to North Eastern Region, Hill and Border areas, etc., the Margin Money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs.50 lakh in the manufacturing sector and Rs.20 lakh in the service sector. Since 2008-09 till date, 8.89 lakh new units have been set up under PMEGP with Margin Money subsidy of Rs. 22,720 crore generating 72 lakh employments. 80% of the units are set up in rural areas.

4. Marketing of Khadi and Village Industries (KVI) products manufactured by rural artisans: Khadi and Village Industries (KVI) products manufactured by rural artisans have established  a  niche  among  consumers  in  the  domestic  as  well  as  overseas  market.   KVI products, having worldwide demand, are being regularly exported by the manufacturing/trading units, either directly or through intermediaries by the KVI institutions/units.
5. Export initiatives taken by KVIC:
3. (i) KVIC under International Cooperation (IC) scheme of Ministry of MSME takes its KVI  units  for  participation  in  international  exhibitions/trade  fairs,  etc.  in  different countries.  The  exhibition/trade  fairs  provides  an  opportunity  and  strong  platform  to showcase quality of KVI products.
4. (ii) Besides,  Government  has  issued  HS  code  bracket  to  Khadi  and  Village  Industries Commission (KVIC) to categorize 11 Khadi products in export.
5. (iii) KVIC  also  conducts  Export  workshops  and  participated  in  Fashion  shows  for  the benefit of KVI institutions/units.

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