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The Strategy of Fund for Renewal of Traditional Industries (SFURTI), was launched in 2005 to foster clustered economic growth in the nation. The Khadi and Village Businesses Council (KVIC) acts as the focal point for the advancement of Khadi Clusters. As an alternative, Coir Board serves as the hub organisation for coir-related clusters. 


This program was implemented to boost the conventional artisan industry, increase its profitability, strengthen its nationwide presence, increase its visibility, and ensure profitability. There will soon be additional job opportunities and shared facility hubs, making this plan especially attractive to artisans employed in the traditional sectors.

Objectives of The SFURTI Scheme

With the new rule, SFURTI has been combined with other programs to maximize its value. A few essential projects this includes are discussed in the paragraphs below: 

  • A plan was created to increase the Indian Khadi industry's and its artisans' ability to compete and produce.

  • The acronym- P.R.O.D.I.P stands for Product Development, Design Intervention and Packaging. This is central to the SFURTI scheme.

  • This SFURTI scheme is also in partnership with the R.I.S.C or the Rural Industries Support Corporation which adds to the benefits, especially for rural industries.

  • Ready Warp Units, and Ready-to-Wear Campaigns, among others., are only a few examples of the many small interventions available under this scheme as well.


Besides, clustering various traditional art and handicraft-based industries together can help promote their efforts, render them more accessible, allow for financial growth, and ensure long-term viability. A few of the major benefits have been listed below:

  • Startups and skilled artisans in manufacturing might find work in rural locales.

  • Better manufacturing, architectural input, and marketing techniques will increase cluster products' marketability.

  • Improve the abilities of the local craftspeople in the linked clusters by giving them a chance to travel and learn from other cultures.

  • Letting the workers utilise the upgraded tools and shared space provided.


Building on stakeholder input, we can better identify and respond to emerging opportunities as well as innate issues by bolstering the governance structures for each of these clusters. These can be achieved through the following few ways:

  • The plan may replicate cluster-based conventional industries by gradually developing traditional and cutting-edge skills, incorporating new-age technology, relevant market information, and public-private collaboration business models.

  • Maintaining high-quality standards by providing aid in manufacturing, design, and handling quality control in confinement.

  • Knowing who could buy cluster products and learning about their needs and wants is crucial in developing a manufacturing process that can meet demand.

  • The plan works on improving sales by shifting from a supply-based to a demand-based approach, with a particular emphasis on branding and price.

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Funding Details of SFURTI Scheme

  • You can receive a sum of up to ₹8 Crores in funding under the SFURTI program. 

  • Historical Clusters may also qualify for the SFURTI scheme for receiving a sum of up to ₹8 Crores if they employ between 1,000 and 2,500 craftspeople.

  • Clusters with 500-1000 craftspeople may get a sum of up to ₹3 Crores, while clusters with 500-4999 workers may avail a sum of up to ₹1 Crore.

  • The number of artisans per cluster relaxation is provided in North Eastern states, and Jammu and Kashmir. This relaxation is around 50% as compared to the clusters in other states.

Eligibility Criteria to Apply for SFURTI Yojana

The following types of registered Indian businesses and business owners are eligible for the SFURTI scheme:

  • Collectives that are not part of the government (NGOs)

  • Partially-owned governmental organisations

  • Institutions of the federal and state governments

  • Community rule organisations (also known as PRIs)

  • Agents of the state and federal governments in various fields

How to Apply for the SFURTI Scheme

Follow the steps mentioned below to apply for the SFURTI scheme:

  • Visit the nearest KVIC and SFURTI State Office in your area.

  • Submit a proposal containing the business details and P&L data.

  • After evaluation by the State and Zonal committees, you’ll receive an intimation about approval or with a request to submit further documents. 

  • After verification, your request will be sent to the SFURTI Scheme Steering Committee for the final approval.

  • After this, the requisite loan is granted immediately.

Documents Required for SFURTI Scheme

To apply for the SFURTI scheme, one must furnish the following documents for speedy verification:

  • Proof of Ownership

  • Proof of Business Registration

  • Income and P&L statements

  • KYC documents such as ID proof, residential address, PAN details, etc.

Benefits of SFURTI Scheme

SFURTI suggests three specific measures to facilitate the growth of regional Indian MSMEs. They are as follows:

  1. Soft intervention strategies refers to things like raising people's level of knowledge and understanding, providing them with opportunities to learn new skills, encouraging them to attend seminars, providing them with guidance and counselling, promoting their products and services to the market, inspiring them to take action, fostering a culture of trust within their organisations, creating new structures and programs, encouraging them to take action, and so on.

  2. Complex interventions include upgradation of equipment and technology, manufacturing infrastructure, quality enhancement, and storage and practice facilities to learn more about different goods and packaging options.

  3. Focusing on domestic and foreign markets, thematic interventions are effective for several sub-clusters within the same industry. E-Commerce activities, brand development, digital media advertising, and promotional efforts are the core focus of these interventions.


If your business meets SFURTI's requirements and eligibility criteria, you can submit a proposal to the appropriate KVIC wing with relevant documents and a duly filled application form. The form is usually available at any KVIC office or regional government centres promoting the SFURTI scheme, especially in rural areas. However, before the Advisory Board approves the plan, it will be reviewed by regional and zonal level authorities. The fund will be disbursed once the business details have been verified and the application is approved. For more information on the SFURTI scheme, visit their website. 

FAQs on SFURTI Scheme

What is SFURTI?

SFURTI is a scheme under the MSME Ministry and KVIC led by the Government of India. It provides several benefits and subsidies for local and rural businesses.

When did the SFURTI scheme start?

The newly revamped SFURTI scheme was launched as a phased program on the 1st of August 2014.

What is the financial assistance allowed under Revamped SFURTI?

The first phase of the new and revamped SFURTI scheme has a total outlay of around Rs. 149.5 Crores and a target to develop at least 71 identified clusters.

What is the aim of the SFURTI scheme?

The main aim of the SFURTI scheme is to organise Indian traditional industries and craftspeople into clusters facilitating improved support, sustainability, competitiveness, transparency, scalability, et al.

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