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Skills & Employment; Business & Entrepreneurship

Cluster Development Scheme

The scheme aims to enhance the productivity and competitiveness as well as capacity building of Micro and Small Enterprises through cluster development approach. It provides various assistance including training, subsidies, and marketing facilities to clusters of 25 or more artisans.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Types of Assistance Provided | - Diagnostic Survey: Assessment and analysis of cluster needs and potential.- Design Development: Support for product design and innovation.- Training: Skill development and capacity building programs for artisans.- Common Facility Centre: Establishment of shared infrastructure and facilities.- Margin Money: Financial assistance for working capital requirements.- Managerial Subsidy: Support for management and administrative costs.- Publicity: Marketing and promotional support for cluster products.- Export Assistance: Support for international market access.- Marketing Facility: Domestic and international marketing support. | Conditions for Availment/Continuation | - Cluster must maintain minimum 25 artisans working and producing goods at one place. | - Beneficiaries must continue to be engaged in handloom and handicraft activities. | - Compliance with scheme guidelines and periodic reporting requirements. | - Participation in training programs and skill development initiatives as mandated.

Who can apply

The applicant must be part of a cluster with minimum 25 artisans or more who work and produce goods at one place.; The applicant must be engaged in handloom and handicraft sector activities.; The applicant must be working and producing goods at a common or designated location within Gujarat.; The applicant must be involved in artisan-based activities in handloom and handicraft sector.; The applicant must be classified as Micro or Small Enterprise.; The applicant must be willing to participate in collective cluster activities.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the minimum number of artisans required to form a cluster that qualifies for assistance under this development program?

The cluster must have a minimum of 25 artisans or more who work and produce goods at one place to be eligible for assistance.

Can individual handloom workers apply for this assistance or do we need to be part of a group to qualify for benefits?

You must be part of a cluster with minimum 25 artisans working together at a common location; individual applications are not accepted under this scheme.

What types of financial and non-financial assistance are available to eligible clusters under this development program for artisan communities?

The scheme provides Diagnostic Survey, Design Development, Training, Common Facility Centre, margin money, managerial subsidy, publicity, export assistance, and marketing facility support.

Where can I obtain the application form and which organizations are authorized to provide assistance under this cluster development initiative?

You can approach Boards and Corporations under Cottage Commissionerate, National Institute of Design, National Institute of Fashion Technology, SHRUJAN, SAHAJ, ICCED, Freelance Designers, or Gujarat Mahila Khadi Rashtriya Gramin Trust.

What business classification requirements must my enterprise meet to be eligible for participation in this handloom and handicraft cluster program?

Your enterprise must be classified as Micro or Small Enterprise and be engaged in artisan-based activities in handloom and handicraft sector.

What evidence do I need to provide to demonstrate that our cluster has the required number of artisans working together?

You need to submit a Cluster Formation Certificate and a List of Participating Artisans with minimum 25 members as part of the documentation requirements.

How long has this cluster development program been available to support artisans in the handloom and handicraft sector in Gujarat?

The scheme was launched in 2003-04 by the Industries & Mines Department, Government of Gujarat to enhance productivity and competitiveness of artisan clusters.

What specific documentation do I need to provide regarding our production activities and workshop facilities during the verification process?

During verification, you must provide production evidence through product samples/photographs and facility details including workshop/production area documentation to demonstrate your cluster's activities.

Can artisans working in different locations within Gujarat form a cluster together, or must we all work at the same place?

All cluster members must work and produce goods at one place or common location; geographically dispersed artisans cannot form a qualifying cluster.

What type of project proposal documentation is required when applying for specific types of assistance like Common Facility Centre or training programs?

You need to submit a Project Proposal for specific assistance requested, detailing your requirements and plans for utilizing the cluster development support.

Must all cluster members be involved in the same type of handloom or handicraft activity, or can we have different specializations within our group?

The scheme covers both handloom and handicraft activities, so cluster members can have different specializations within these sectors while maintaining the minimum 25 artisan requirement.

What ongoing obligations and compliance requirements must our cluster fulfill to continue receiving benefits throughout the program duration?

You must maintain minimum 25 artisans, continue handloom and handicraft activities, comply with scheme guidelines, participate in mandated training programs, and submit periodic reports.

How are applications processed after submission and what is the typical timeline for receiving approval or rejection notifications?

Applications undergo verification by the concerned implementing agency, though specific processing timelines are determined by the individual boards and institutions handling the applications.

What banking documentation do I need to provide for receiving financial assistance like margin money or managerial subsidy through this program?

You must provide bank account details including passbook copy or cancelled cheque to facilitate disbursement of financial assistance through the cluster development scheme.