A much-awaited event, the Union Budget 2023, announced recently by the Finance Minister, outlines the government’s financial plans and priorities for the coming year. Across all sectors, this budget significantly impacts businesses, so entrepreneurs and individuals must understand how it might affect them financially.
Especially for artisans and craftsmen, who contribute significantly to India’s culture and economy. This blog focuses on the Union Budget 2023 and its implications for artisans and craftspeople in the handicraft industry. Throughout this session, we will discuss the key announcements and initiatives that could significantly impact the handicraft industry’s business and financial stability. We will also discuss opportunities that the budget presents.
Critical Measures for Supporting MSME Sector and Artisans/Craftsmen
Numerous significant initiatives supporting businesses, notably the MSME sector, are included in the Union Budget for 2023. Given that it considerably contributes to the Indian economy and employs many people, the MSME sector is receiving special attention.
The government has announced several programs and initiatives to promote the MSME sector, making it simpler for small and medium-sized businesses to acquire loans and operate in a supportive business climate. These initiatives include making business more straightforward in India and easier access to finance and tax advantages.
Several significant initiatives helping businesses, notably the MSME sector, are included in the Union Budget for Business 2023. These steps will work to establish an atmosphere conducive to company growth and success, together with programs like the PM Vishwakarma Kaushal Samman Scheme.
PM Vishwakarma Kaushal Samman Scheme (PM VIKAS)
The PM Vishwakarma Kaushal Samman Scheme is a brand-new program that was unveiled in the Union Budget 2023 to honor and promote the abilities of the nation’s artisans and craftsmen. The program aims to preserve and promote the nation’s traditional arts, crafts, and trades for future generations.
Overview of the scheme
The PM Vishwakarma Kaushal Samman Scheme recognizes the remarkable talent and knowledge of artists and craftspeople who have succeeded in their fields. Every qualified crafter and artist registered with the Ministry of Micro, Small, and Medium Enterprises is eligible to participate in the program (MSME). The recipients will receive a diploma, a monetary award, and other rewards at the annual award ceremony.
Benefits for Artisans and Craftsmen
The PM Vishwakarma Kaushal Samman Scheme is a fantastic chance to highlight their abilities and receive praise for their work. The honor will give them more self-assurance and motivate them to work even harder and more passionately in the future. The prize presentation also gives artisans and crafters a chance to network and engage with others in the sector, which may result in new business prospects.
The Program’s Impact on the Handicrafts Sector
A significant step in developing the nation’s ancient arts and abilities is the PM Vishwakarma Kaushal Samman Scheme. The program will encourage more people to learn the skill by honoring the best of the best, ultimately expanding the industry. By promoting the subsequent generation of artisans and craftsmen to carry on the legacy, the program will also aid in preserving traditional crafts that are in danger of disappearing.
The PM Vishwakarma Kaushal Samman Scheme is a significant effort to support the handicraft sector’s expansion while empowering the nation’s artisans and craftsmen. The program will contribute to preserving the nation’s traditional crafts for future generations and is a step in the right direction.
The Impact of the Budget on the Handicraft Industry 2023
Wednesday, February 1, during her presentation of the Union Budget 2023–24 to Parliament, Union Finance Minister Nirmala Sitharaman unveiled a package of support for craftsmen and craftspeople. According to Ms. Sitharaman, the newly developed Pradhan Mantri Vishwakarma Kaushal Samman (PM-VIKAS) program would allow the nation’s craftsmen to increase the quality, scope, and reach of their products by integrating them with the Micro, Small, and Medium-scale Enterprises (MSME) value chain.
She highlighted that they are sometimes referred to as “Vishwakarma” and stated that traditional artists and crafters who worked with their hands and instruments had brought fame to India for generations. Invoking Atmanirbhar Bharat’s ideal, Ms. Sitharaman claimed that the art and handicrafts produced by the Vishwakarma people genuinely capture the essence of an independent India.
Analysis of Budget Announcements
The budget has made several announcements aimed at boosting the handicraft industry. The government has proposed to set up a national-level Handicrafts Mega Cluster in Jammu & Kashmir, providing a platform for artisans to showcase their skills and help develop the industry. In addition, the government has also proposed to launch a new scheme called ‘Gram Udyam’ to provide credit and marketing support to artisans and weavers in rural areas. This will go a long way in providing much-needed support to the artisans who face several challenges in financing and marketing their products.
Addressing Challenges Faced by the Industry
One of the significant challenges the handicraft industry faces is the need for more marketing and financing support. The budget has proposed several initiatives to address these challenges, including launching Gram Udyam and providing credit and marketing support to artisans and weavers in rural areas. In addition, the government has also proposed to set up a national-level Handicrafts Mega Cluster in Jammu & Kashmir, which will provide a platform for artisans to showcase their skills and reach a broader market.
Credit Guarantee for MSMEs
The FM had suggested updating the MSMEs credit guarantee program last year. Sitharaman announced on Wednesday that the revised schedule would go into effect on April 1, 2023, with an injection of Rs 9,000 crore into the corpus. This will provide Rs 2 lakh crore of collateral-free guaranteed loans. Additionally, there will be a 1% reduction in the cost of the credit.
Relief for MSMEs: Vivad se Vishwas I
According to the budget, if MSMEs failed to complete contracts within the Covid term, government and government undertakings would repay 95% of the forfeited cash related to the bid or performance security to them. MSMEs having difficulty making ends meet due to economic upheavals could benefit from this.
Entity DigiLocker
According to the budget, DigiLocker would be set up for use by MSMEs, big businesses, and charity trusts. This will make it easier for these businesses to securely store documents online so that they can easily share them when necessary with various authorities, regulators, banks, and other business entities.
Bottom Line
Focusing on the MSME sector and the handicraft industry in the Union Budget 2023 will help these sectors grow and contribute even more to the Indian economy. Overall, the Union Budget 2023 provides a positive outlook for businesses, especially for the MSME and handicraft industries.
