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The Ministry of MSME launched the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) in 2005. The scheme focuses on organizing of artisans and form clusters with an objective to enhance their incomes. The major objectives of the scheme are:
  • Promote Traditional Industries Cluster
  • Provide Sustained Employment for Artisans
  • Shift from Supply Driven Model to Market Driven Model
  • Explore E-commerce platforms
  • Introduction to Technology & Machine Innovation
  • Introduce Design Interventions & Packaging
  • Enhance Skills & Capabilities Building

Revised Guidelines for the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) have been approved on 2.3.2020 and published on the Ministry of MSME Website. Refer to link below.


The Scheme covers three types of interventions namely “soft interventions”, “hard interventions” and “thematic interventions”.

  • Soft interventions – i. General awareness, counselling, motivation and trust building; ii. Skill development and capacity building; iii. Institution development; iv. Exposure visits; v. Market promotion initiatives; vi. Design and product development; vii. Participation in seminars, workshops and training programmes on technology up-gradation, etc.
  • Hard Interventions – Creation of facilities such as Multiple facilities for multiple products and packaging wherever needed; Common facility centres (CFCs); Raw material banks (RMBs); Up-gradation of production infrastructure; Tools and technological up-gradation; Warehousing facility; Training center; Value addition and processing center
  • Thematic interventions – Cross – cutting thematic interventions at the sector level including several clusters in the same sector with emphasis on both domestic and international markets.

Traditional industries have been broadly categorized as under:

  • Khadi Industries;
  • Village Industries; and
  • Coir Industries.

Khadi Industries (KI) – “Khadi” means any cloth woven on handlooms in India from cotton, silk or woolen yarn handspun in India or from a mixture of any two or all of such yarns. The Khadi Industries comprise of manufacturing units for hand-spun and hand-woven cotton, woolen, muslin and silk varieties.

Village Industries (VI) – Village Industries (VI) includes any industry located in rural area which produces any goods or renders any service with or without the use of power and in which the per-capita fixed capital investment does not exceed Rs. 1 lakh (except for hilly areas, wherein the limit is Rs.1.5 lakh); provided that any industry specified in the Schedule and located in an area other than a rural area and recognized as a village industry at any time before the commencement of the Khadi and Village Industries Commission, continue to be a village industry under the KVIC Act. An indicative list of major VIs is provided as below: i). Mineral Based Industry a. Cottage Pottery Industries b. Lime Industries ii). Forest Based Industry a. Medicinal Plants Industries b. Bee-keeping c. Minor Forest based Industries iii). Agro Based & Food Processing Industry a. Pulses & Cereals Processing Industries b. Gur & Khandsari Industries c. Palmgur Industries d. Fruit & Vegetable Processing Industries e. Village Oil Industries iv). Polymer & Chemical Based Industry; Revised Guidelines for SFURTI- Scheme of Fund for Regeneration of Traditional Industries Page 27 a. Cottage Leather Industries b. Non-edible oils & Soap Industries c. Cottage Match Industries d. Plastics Industries v). Rural Engineering & Bio-Technology Industry a. Non-Conventional Energy b. Carpentry &Black smithy c. Electronics vi). Hand Made Paper &Fiber Industry; a. Handmade Paper Industries b. Fiber Industries vii). Service and Textiles Industry a. Apparel and garmenting b. Embroidery and surface ornamentations c. Fabric and yarn dyeing d. Services Khadi & Village Industries (KVI) today represent an exquisite, heritage product, which is ‘ethnic’ as well as ethical. It has a potentially strong clientele among the middle and upper echelons of the society.

Coir Industry (CI) – Coir Industry is an agro-based traditional industry, which originated in the state of Kerala and now has established itself in other coconut producing states like Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, West Bengal, Maharashtra, Assam, Tripura, etc. Coir, a bi-product of coconut with diverse applicability, has age-old use in making mats, ropes etc. The coir industry employs more than 7 lakh persons of whom a majority are from rural areas belonging to the economically weaker sections of society. Nearly 80% of the coir workers in the fibre extraction and spinning sectors are women. Being an eco-friendly with natural origin, the coir industry is an export oriented industry and having greater potential to enhance exports by value addition through technological interventions and diversified products like Coir Geotextiles etc.