The traditional industries of India include handloom, handicrafts, coir, cashew,beedi, tiles and bricks and other household industrial activities carried out in the rural parts of the country. They are labour intensive and rely on skills passed on from one generation to another generation. However, they are mostly non-viable as they have not modernized themselves to cater to the changing demand conditions and their marketing strategies are often not well planned or executed. As a result, many of these industries depend on subsidies for survival and lack a commercial orientation.
The Ministry of Micro, Small and Medium Enterprises is implementing the “Scheme of Fund for Regeneration of Traditional Industries (SFURTI)” for regeneration of traditional industries clusters from khadi, village and coir sectors. The Scheme envisages need-based assistance for replacement of production equipment, setting up of common facility centres (CFC), product development, quality improvement, improved marketing, training and capacity building, etc. 26 coir clusters have been approved from the coir producing States for their development under SFURTI.
To develop coir industry, a new central sector scheme titled ‘Scheme for Rejuvenation, Modernisation and Technological Upgradation of Coir Industry’ has been launched in March 2008 to assist spinners and tiny household sector. Under this scheme, assistance is provided to groups of spinners and tiny sector workers for replacement of outdated ratts/looms and for constructing worksheds so as to increase production and earnings of such workers.
To promote the cashew industries sector, the Cashew Export Promotion Council of India (sponsored by the Government in the Department of Commerce) is implementing a scheme ‘Modernisation and Diversification’ under the five year plan schemes of the Government to provide assistance to exports for upgrading/modernizing their processing facilities.