PM Vishwakarma Scheme Completes Three Years

Source: PIB
GS II: Government Schemes, Vulnerable Sections, Inclusive Development, GS III: MSMEs, Employment

Why in the News?

PM Vishwakarma Scheme has completed three years of implementation on 17 September 2026.

News in Brief

• PM Vishwakarma, launched in September 2023, supports traditional artisans through skill training, modern toolkits, collateral-free credit, digital incentives and market linkages, with an outlay of ₹13,000 crore.
• The scheme covers 18 traditional trades and has already achieved its target of 30 lakh registered beneficiaries as it approaches three years of implementation.
• As of 15 September 2026, over 24.37 lakh artisans had completed basic training, 18.16 lakh had received toolkits, and 6.19 lakh loans worth about ₹5,316 crore had been sanctioned.
• The scheme is also promoting digitalisation and market access, with over 8.11 lakh beneficiaries receiving digital incentives and more than 30,000 artisans onboarded on e-commerce platforms.

Objective of PM Vishwakarma

• Traditional artisans constitute an important part of India’s local economy, cultural heritage and livelihood system.
• Many of these occupations depend on manual skills, family-based knowledge and small-scale enterprises.
• PM Vishwakarma seeks to provide end-to-end support rather than focusing only on credit.
• It aims to improve the quality and reach of artisans’ products and services and facilitate their integration with domestic and global supply chains.
• The scheme also seeks to preserve traditional skills while making them relevant to a charging market and economic environment.

Three Pillars

• The scheme is structured around,
  • Samman – recognition and dignity for traditional artisans.
  • Samarthya – building capabilities through skill development and better tools.
  • Samriddhi – improving income opportunities through credit, digitalization and market access.
• An important component is the strengthening of the Guru-Shishya Parampara, which involves transmission of knowledge and sills from an experienced practitioner to the next generation.
• In traditional crafts, such knowledge is often embedded in family and community-based occupational practices.
• PM Vishwakarma seeks to preserve this community while introducing modern tools, design, entrepreneurship and market practices.

Eligibility

• PM Vishwakarma is intended for artisans and craftspeople who,
  • Are 18 years or above.
  • Work with their hands and tools.
  • Belong to one of the 18 notified traditional trades.
  • Work in the unorganised sector on a self-employment basis.
  • Have not availed similar credit-based government schemes for self-employment or business development during the preceding five years.
• Registration and benefits are limited to one member of a family, defined as husband, wife and unmarried children.
• Government employees and their family members are not eligible.
• However, beneficiaries of MUDRA, and PM SVANidhi who have completely repaid their loans can become eligible for PM Vishwakarma.

Major components of the Scheme

Skill Development and Modernization

• After registration and verification, beneficiaries receive a PM Vishwakarma Certificate and ID Card, giving formal recognition to traditionally informal workers.
• Skill training introduces artisans to modern tools, improved practices, innovative designs, digital transactions, marketing and entrepreneurship.
• The training follows a progression from skill assessment to basic and advanced training, with a stipend provided to trainees.
• The scheme also provides modern toolkits to improve productivity and enable artisans to upgrade their traditional methods without losing the character of their crafts.

Credit and Digital Inclusion

• Access to institutional finance is an important component.
• Beneficiaries can obtain collateral-free Enterprise Development Loans in successive tranches at a concessional interest rate.
• Access to further credit is linked to repayment behavior and either digital adoption or advanced training.
• The scheme also provides incentives for eligible digital transactions.
• This encourages artisans who traditionally operate in cash-based informal markets to participate in the formal digital economy.

Market Access and Formalization

• PM Vishwakarma connects artisans with Government e-Marketplace (GeM), ONDC and other e-commerce platforms, besides trade fairs, exhibitions and branding initiatives.
• Special efforts have also been made to promote products of Divyangjan and tribal artisans through One Station One Product, Ministry of Civil Aviation’s AVSAR scheme and Tribal Artisan Melas organized by Ministry of MSME in collaboration with TRIFED.
• Workshops on packaging and branding further help artisans improve the marketability of their products.
• The Udyam Assist Platform is another important element.
• It helps bring informal micro-enterprises into the formal MSME ecosystem and enables them to obtain formal registration and access applicable government benefits.

Unorganized Sector and Traditional Skills

• The unorganized sector includes informal enterprises and workers operating outside the organized economy.
• Traditional artisans are often self-employed and depend on family-based occupational knowledge.
• PM Vishwakarma attempts to bridge the gap between this informal base and the formal economy through recognition, institutional finance, digitalization and market integration.
• The scheme is therefore significant not only for employment and income generation, but also for preserving India’s intangible cultural heritage.
• Its approach attempts to make traditional occupations economically viable while allowing them to adapt to modern technology, consumer demand and new markets.

Significance for India’s Development

PM Vishwakarma can contribute to the broader goal of Viksit Bharat by bridging traditional artisans and small informal enterprises into the mainstream of economic development.

• Inclusive Growth- It attempts to integrate traditional workers and small informal enterprises into formal economic systems.
• Skill Development- Training and modern tools can help traditional occupations adapt to changing consumer preferences and technologies.
• Financial Inclusion- Collateral-free institutional credit can provide an alternative to dependence on informal sources of finance.
• Digital Inclusion- Digital transaction incentives encourage artisans to participate in the formal digital payment ecosystem.
• MSME Formalization– Onboarding through the Udyam Assist Platform connects informal enterprises with the formal MSME ecosystem.
• Cultural Heritage- The scheme goes beyond livelihood support by seeking to sustain traditional skills, family-based knowledge and the Guru-Shishya parampara.
• Market Integration- GeM, ONDC, e-commerce platforms, exhibitions, trade fairs and specialised outlets can connect traditional producers with larger markets.
• Technology and Traditional Skills- Training more than 12,000 artisans in AI tools for branding, product design, packaging and marketing illustrates an attempt to combine traditional craftsmanship with contemporary technology.

Conclusion

UPSC Prelims Practice Question

Consider the following statements regarding PM Vishwakarma:

1. It is a Central Sector Scheme covering 18 traditional trades.
2. It provides collateral-free Enterprise Development Loans up to ₹3 lakh in two tranches.
3. Beneficiaries receive ₹1 for every eligible digital transaction without any monthly limit.
4. Applications under the scheme can be submitted through Common Service Centres.

Which of the statements given above are correct?

A. 1, 2 and 4 only
B. 1 and 3 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4

Answer: A

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