“Gujarat’s new Cottage and Rural Industries Policy, launched in June 2025, aims to empower artisans and entrepreneurs with enhanced loans and subsidies. Targeting 12 lakh jobs in five years, the scheme promotes sustainable growth in rural areas. It has generated significant buzz, promising economic upliftment and support for traditional crafts.”
Gujarat’s Bold Step to Uplift Artisans and Rural Entrepreneurs
In a transformative move, the Gujarat government unveiled its ambitious Cottage and Rural Industries Policy in June 2025, designed to bolster the state’s artisanal and entrepreneurial ecosystem. The policy, which builds on earlier initiatives, focuses on providing higher loans and subsidies to rural artisans and small-scale entrepreneurs, aiming to create 12 lakh jobs over the next five years. The announcement has sparked widespread enthusiasm, with stakeholders hailing it as a game-changer for Gujarat’s rural economy.
The policy targets artisans engaged in traditional crafts such as handloom weaving, pottery, and embroidery, alongside budding entrepreneurs looking to establish small-scale units in rural areas. By offering financial assistance, including low-interest loans and substantial subsidies, the government seeks to bridge the gap between traditional skills and modern market demands. The scheme also includes provisions for skill development programs, marketing support, and access to digital platforms to help artisans reach global audiences.
A key highlight of the policy is its emphasis on sustainable growth. The government has introduced eco-friendly production incentives, encouraging artisans to adopt green practices. This aligns with Gujarat’s broader vision of balancing economic progress with environmental responsibility. Additionally, the policy provides infrastructure support, such as setting up common facility centers in rural areas, enabling artisans to access modern tools and technologies without significant capital investment.
Local artisans have expressed optimism about the scheme. For instance, Rekha Ben, a handloom weaver from Kutch, shared, “This policy gives us hope. With better loans, I can upgrade my loom and sell my products online.” Similarly, small-scale entrepreneurs like Anil Patel, who runs a handicraft unit in Surendranagar, believe the subsidies will help scale operations and compete in national markets.
The government has allocated a significant budget to ensure the policy’s success, with funds earmarked for training programs and market linkages. Industry experts note that the scheme’s focus on job creation could significantly reduce rural unemployment and curb migration to urban areas. The policy also dovetails with national initiatives like “Make in India” and “Atmanirbhar Bharat,” positioning Gujarat as a hub for cottage industries.
Social media platforms, particularly X, are abuzz with discussions about the policy’s potential. Posts highlight its promise of economic empowerment and job creation, with many users praising the government’s proactive approach. However, some voices caution that effective implementation and monitoring will be critical to ensuring the benefits reach the intended beneficiaries.
The policy also includes measures to promote women’s participation in cottage industries. Special incentives are offered to women-led enterprises, aiming to foster gender equality and economic independence. This has been lauded by women’s collectives across the state, who see it as an opportunity to strengthen their role in the rural economy.
As Gujarat rolls out this visionary policy, the state is poised to set a benchmark for empowering artisans and fostering rural entrepreneurship. The blend of financial support, skill enhancement, and market access could redefine the cottage industry landscape, making it a model for other states to emulate.
Disclaimer: This article is based on information from recent posts on X and publicly available sources. The details provided are subject to change as the policy is implemented. Readers are advised to verify information through official government channels for the most accurate updates.