Gramodyog Vikas Yojana | UPSC

Gramodyog Vikas Yojana _ UPSC

Gramodyog Vikas Yojana | UPSC


Government of India launches a programme for the benefit of artisans involved in manufacturing of Agarbatti under the ‘Gramodyog Vikas Yojana’(as a pilot project).

      WHY IN NEWS:

Ministry of Micro Small and Medium Enterprises (MSME) approved a programme for the benefit of artisans involved in manufacturing of Agarbatti – ‘Gramodyog Vikas Yojana’ on 30th July 2020.

MINISTRY? :-Ministry of Micro,Small & Medium Enterprises


For PRELIMS this is not an important scheme ! But yes we have to take care of each fish in the net . Go through aim , significance and the pilot project .

For MAINS what are the challenges associated with Agarbatti industries ?




  • The programme aims to enhance the production of ‘Agarbatti’ to develop village industry in the country.

This will create sustainable employment for the traditional Artisans, by providing them regular employment and increase in their wages.


  • As per the programme, initially four Pilot Projects will be started, including one in North Eastern part of the country.


Each targeted cluster of artisans will be supported with about 50 Automatic Agarbatti making machines and 10 Mixing machines.

  • Accordingly, a total of 200 Automatic Agarbatti making machines and 40 Mixing machines will be provided to the artisans.


After two major decisions by Govt of India

i) placing the ‘Agarbatti’ item from “Free” trade to “Restricted” trade in the import policy and

ii) enhancing the import duty from 10% to 25% on ‘round bamboo sticks’ used for manufacturing of Agarbatti,

These decisions will help to boost the indigenous production of ‘Agarbatti’ and will pave way to generate rural employment.   

  • This will also start the process of mitigating the gap between the indigenous ‘production and demand’ .


  • Under this Mission, Khadi and Village Industries Commission (KVIC), one of the statutory organizations, working under the M/o MSME,will provide  training.
  • KVIC will assist artisans working in this area, with Agarbatti manufacturing machines.
  • KVIC will tie up with Khadi institutions / Agarbatti manufacturers in the country, having good track record, to provide work and raw material to ‘Agarbatti making artisans’.
  • The program will act as a catalyst in reviving the Agarbatti manufacturing in the villages.

The initiative in small towns will immediately generate  a  minimum of  about  500 additional  jobs. 

      IASbhai WINDUP: 

‘Gramodyog Vikas Yojana’ will give a boost to the domestic Agarbatti Industry in the country and will reduce imports of Agarbatti.

     SOURCES:THE HINDU & PIB | Gramodyog Vikas Yojana | UPSC


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