New Delhi: The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) initiative continues to strengthen India’s traditional industry ecosystem as the Ministry of Micro, Small and Medium Enterprises (MSME) reported significant progress in cluster-based development programmes across the country.
The Ministry announced that 364 projects have been completed under the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), while the SFURTI scheme is expanding support for traditional artisan clusters and rural livelihoods.
The Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) of the Ministry of Micro, Small and Medium Enterprises, Government of India focuses on establishing Common Facility Centres (CFCs) and developing Infrastructure Development (ID) projects to improve productivity and competitiveness of Micro and Small Enterprises (MSEs) operating in cluster ecosystems.
Since the inception of the programme, 606 projects have been approved, of which 364 projects have been completed while 242 projects are currently ongoing.
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SFURTI Strengthens Traditional Industry Clusters
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) has emerged as a major initiative for promoting cluster-based development of traditional industries in India.
Under SFURTI, the government has approved 513 clusters nationwide since 2015-16, with a committed financial assistance of ₹1,332.95 crore.
These SFURTI clusters aim to support approximately 3.03 lakh traditional artisans across sectors such as handicrafts, handloom, agro-processing, coir, honey, and allied activities.
Out of the total approved clusters, 378 clusters are currently functional, while 135 clusters are at different stages of implementation.
The SFURTI programme is contributing to strengthening grassroots economic ecosystems by facilitating infrastructure development, skill enhancement, value addition, and improved market linkages for artisans and small producers across rural India.
Infrastructure and Technology Support Under MSE-CDP
Under the MSE-CDP, several infrastructure components are eligible for financial assistance for establishing CFCs. These facilities support technological advancement and operational efficiency in MSME clusters.
Key components supported under MSE-CDP include:
- Industry 4.0 learning facilities
- Additive manufacturing facilities
- Digital infrastructure
- Design and incubation centres
- Training centres and skill upgradation facilities
- Research and development (R&D) centres
- Common renewable energy generation systems, including solar, wind and bio energy
- Energy management equipment
- CFCs for greenfield clusters aimed at holistic development of the MSME sector
The MSE-CDP scheme operates as a demand-driven Central Sector Scheme, where State Governments submit proposals based on the common needs of existing clusters within their respective States and Union Territories.
Digital Transformation of MSMEs
The industrial landscape in India has seen increasing digitalisation among MSMEs, leading to improved operational efficiency, productivity and competitiveness.
MSMEs are increasingly adopting digital payments, e-commerce transactions, Internet of Things (IoT) enabled production tools and artificial intelligence-based technologies to enhance business operations and value creation.
To accelerate digital adoption, the Government has introduced multiple initiatives aimed at strengthening the technological capabilities of MSMEs.
These include platforms from the Ministry of Electronics and Information Technology such as:
- DigiLocker
- IndiaAI Datasets Platform
In addition, connectivity initiatives from the Department of Telecommunications — including BharatNet and PM-WANI — are improving affordable internet access and last-mile connectivity across the country.
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MSME Digital Empowerment Initiatives
The Ministry of Micro, Small and Medium Enterprises is also supporting digital transformation through several initiatives. These include:
- Digital registration through Udyam
- Technology adoption training through MSME Tool Rooms and Technology Centres
- Incubation of new ideas and technologies through the MSME Innovative Scheme
- MSE Green Investment for Financing Transformation Scheme to promote investment in green technologies
TEAM Scheme to Support MSMEs on ONDC
To strengthen market access for MSMEs, the Ministry has also launched the Trade Enablement and Marketing (TEAM) scheme, which facilitates onboarding of Micro and Small Enterprises onto the Open Network for Digital Commerce (ONDC).
The TEAM scheme provides financial assistance to Seller Network Participants (SNPs) to support MSME onboarding on ONDC. The assistance covers activities such as:
- Seller onboarding
- Product cataloguing
- Account management
- Logistics support
- Packaging materials
- Design services
The government has also stated that half of the MSME beneficiaries under this initiative will be women-owned enterprises, promoting greater participation of women entrepreneurs in digital commerce.
This information was provided by Minister of State for MSME, Shobha Karandlaje, in a written reply in the Lok Sabha on March 12, 2026.
