Analyzing PM Vishwakarma

Sep 12, 2023

PM Vishwakarma:Analysed

Introduction:

Coinciding with Vishwakarma Jayanthi on September 17, the Indian government is launching the PM Vishwakarma scheme. This analysis delves into the scheme's objectives, its potential impact on the Other Backward Classes (OBCs), and its macro and micro details.

Macro Factors:

Budget Constraints:

The scheme's five-year outlay of Rs. 13,000 crore (~$1.75 billion) appears limited compared to the size of the OBC class.

Scope: The scheme covers 18 trades with potential expansion.

Coverage: Aiming to benefit 30 lakh families initially, this represents a small fraction of the artisan population.

Micro Details:

Training: Beneficiaries receive 4-5 days of skill development training with a daily stipend of Rs. 500.

Tool Purchase: An additional Rs. 15,000 is granted for the purchase of contemporary tools.

Support: Participants gain a PM Vishwakarma certificate, ID card, and access to a subsidized loan of Rs. 2 lakhs at 5% interest.

Loan Disbursement: Disbursement occurs in two tranches based on performance and repayment.

Marketing and Digital Incentives: Beneficiaries receive marketing support and incentives for digital transactions.

Analysis:

Limited Funding: The scheme's budget may not suffice to create a substantial impact given the size of the OBC community.

Inadequate Coverage: The number of beneficiaries falls short of the artisan population, raising concerns about its effectiveness.

Income Challenge: The handloom and handicraft sectors, despite their cultural significance, provide meager incomes.

Competitive Challenges: Traditional products struggle to compete with modern industries in terms of price and quality.

Long-term Perspective: To make a meaningful impact, addressing root causes like education and alternative employment opportunities is essential.

Conclusion:

While the PM Vishwakarma scheme aims to empower OBC artisans, its limited budget, coverage, and focus on traditional trades may not significantly uplift this community. Addressing broader challenges and providing alternative avenues for income generation remain critical to their sustainable progress.

Trades covered: