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Published on:

April 14, 2025

Alankar Mishra

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Everything About SFURTI Scheme for Traditional Industries

India continues to showcase its vibrant culture through its unique handicrafts and traditional industries. From Banaras weavers to Kashmiri artists who create masterpieces out of Papier Mache, these micro and village industries are age-old and rich in culture but unfortunately lack access to modern tools, marketing, and other infrastructural support. This is where the SFURTI (Scheme for the Fund for Regeneration of Traditional Industries) comes in.

One of the flagship schemes that aims to rejuvenate India’s existing traditional clusters, SFURTI was launched by the Ministry of MSME (Micro, Small & Medium Enterprises). The Scheme provides financial assistance, infrastructural support, skill development, and modern marketing to SFURTI clusters to help preserve and reverse the decline of traditional industries.

In this guide, we will discuss what SFURTI is, its objectives, benefits, eligibility, how to apply, and success stories. If you are an artisan, NGO, startup or an entrepreneur, this scheme can certainly help you in rejuvenating traditional Indian crafts.

What is SFURTI?

SFURTI, or the Scheme of Fund for Regeneration of Traditional Industries, was started in 2005 and restructured in 2014 by the Ministry of MSME, Government of India. This scheme is operated by the Khadi and Village Industries Commission (KVIC), Coir Board, and other agencies of the Government of India.

It seeks to systematize traditional industries and artisans into clusters so that they can form competitive, self-sustainable, and profitable enterprises.

Key Objectives of the SFURTI Scheme

The SFURTI initiative focuses on rejuvenating the traditional sectors in India, such goals include:

1. Cluster Based Development: Establish self-sustaining clusters of artisans and producers.

2. Skill Upgradation: Equip artisans with modern methods and technologies.

3. Market Access: Enable conventional businesses to access new markets, including local as well as international ones.

4. Common Facility Centers (CFC): Construct modernized shared production facilities.

5. Branding & Marketing: Use modern advertising, professional packaging, trade shows, and social media to market the products.

6. Sustainable Income Generation: Provide sustained employment to rural artisans and improve rural economic development.

Which Traditional Industries are Covered?

SFURTI covers a wide range of traditional and village-based industries, including:

Khadi & Village Industries.

Handlooms and Handicrafts.

Coir and Jute Products.

Bamboo & Cane Products.

Honey & Beekeeping.

Agro-Based Processing.

Leather Works.

Metal Crafts.

Herbal Products.

Textile Crafts.

Wood Carving and Toys (like Kondapalli, Channapatna).

If your business belongs to a traditional sector, you may be eligible for funding and support under SFURTI.

Financial Assistance under SFURTI

The scheme supports three types of clusters, based on the number of artisans:

Cluster Type	No. of Artisans	Max. Financial Assistance
Heritage Cluster	1000+	₹5 Crore
Major Cluster	500–1000	₹3 Crore
Mini Cluster	Up to 500	₹1.5 Crore

Where does the money go?

The financial assistance can be used for:

Setting up Common Facility Centres.

Raw material banks.

Training and capacity building.

Design and packaging workshops.

Digital marketing and e-commerce.

Creating e-market links and export promotion.

Who Can Apply for SFURTI?

The scheme is open to a wide variety of institutions and stakeholders. Eligible applicants include:

NGOs and SHGs working with artisans.

Registered societies and trusts.

Private Companies and Producer Companies.

Co-operative Societies.

academic institutions or R&D organizations.

Panchayati Raj Institutions.

However, the entity must have a minimum of 3 years of experience in managing community-based projects.

Step-by-Step Process to Apply for SFURTI

If you’re planning to apply, here’s a simplified roadmap:

Step 1: Identify a Cluster

Choose a region with a concentration of traditional artisans (minimum 100–500 artisans depending on cluster type).

Step 2: Prepare a Detailed Project Report (DPR)

A professional DPR is mandatory it should include project vision, artisan profile, value chain, budget, technical needs, and sustainability model.

Step 3: Submit the Proposal to the Nodal Agency

Submit your application to an approved Nodal Agency (KVIC, Coir Board, etc.) along with your DPR.

Step 4: Screening by Technical Agency

Your project will be reviewed by a Technical Agency that assesses feasibility.

Step 5: Final Approval by Scheme Steering Committee (SSC)

Once approved, the funds will be released in tranches linked to milestone achievements.

Key Roles in the SFURTI Scheme

1. Nodal Agencies: Central coordinating bodies like KVIC, Coir Board, etc.

2. Implementing Agencies (IA): Local NGOs, companies, or cooperatives.

3. Technical Agencies (TA): Provide DPR support, technical evaluation, and cluster development.

4. Project Management Agencies (PMA): Ensure timely execution and quality control

Benefits of SFURTI Scheme for Traditional Industries

Here’s how SFURTI is a game-changer for artisans:

1. Access to Modern Infrastructure: Artisans get CFCs with advanced machinery, storage, and packaging units.

2. Skill Development: Workshops on modern tools, better designs, finishing techniques, and productivity improvements.

3. Branding and Visibility: Support in trademark registration, packaging design, and social media marketing.

4. E-commerce and Export Linkages: Clusters are assisted in selling via Amazon Karigar, Flipkart Samarth, and even global B2B platforms.

5. Sustainable Income: Increased productivity, better quality, and wider reach = more sales and stable income for artisans.

Impact of SFURTI (2024 Stats)

As of the latest data available:

Over 500 clusters approved across India.

2.5 lakh+ artisans benefited.

₹1200+ crore invested.

States like Tamil Nadu, Odisha, West Bengal and Uttar Pradesh have seen major transformation under SFURTI.

Conclusion

India’s traditional industries are not just about art and culture, they are powerful engines of rural employment and economic growth. The SFURTI scheme offers a golden opportunity to revive and modernize these age-old crafts.

Whether you’re a grassroots NGO or a startup passionate about heritage-based entrepreneurship, SFURTI provides the tools, funds, and ecosystem support needed to turn traditional industries into global success stories.

FAQs

Can individuals apply for SFURTI?

No, SFURTI is not meant for individual artisans. Only institutions like NGOs, producer companies, cooperatives, or SHGs working with a group of artisans can apply.

What’s the maximum funding I can get under SFURTI?

Depending on the size of your artisan cluster, you can receive up to ₹5 crore for infrastructure, skill development, and marketing.

Is private company participation allowed in SFURTI?

Yes, registered private companies and producer companies involved in artisan clusters can participate as Implementing Agencies, provided they meet the eligibility norms.