The SFURTI Scheme (Scheme of Fund for Regeneration of Traditional Industries) is an initiative by the Ministry of MSME, Government of India, launched to boost traditional industries and artisanal clusters across the country. It aims to organise artisans into collectives to enhance their competitiveness and sustainability. The scheme provides financial support for skill development, infrastructure creation, technology upgradation, and market linkages. Check your business loan eligibility if you're planning to supplement SFURTI benefits with additional funding for operational needs.
Implemented through nodal agencies, SFURTI helps rejuvenate industries such as khadi, coir, handloom, handicrafts, and agro-based products by promoting cluster-based development.
Objectives of SFURTI scheme
- To organise traditional industries and artisans into clusters.
- To develop sustainable employment opportunities in rural areas.
- To enhance marketability of products through brand building and design support.
- To improve the skills of artisans through training and capacity building.
- To provide common facilities and improved tools for production.
- To promote traditional crafts in both domestic and international markets.
Revised guidelines of SFURTI Scheme (2025 updates)
With the 2025 revision, the SFURTI Scheme has undergone enhancements to improve impact and accessibility:
- Increased budget support for each cluster based on their size and potential.
- Inclusion of more sectors, including eco-friendly and sustainable crafts.
- Faster project approval timelines and decentralised decision-making.
- Emphasis on e-commerce integration and digital marketing for artisan products.
- Strengthened linkages with skilling programs and industry partners.
- Better convergence with financial schemes, including access to MSME loan facilities.
Who can apply for the SFURTI scheme?
- Non-Government Organisations (NGOs)
- Private sector institutions, cooperatives, or producer companies
- Panchayati Raj institutions and government departments involved in rural development
- SPVs (Special Purpose Vehicles) formed by clusters
- Any organisation with at least 3 years of experience in cluster development or rural enterprise promotion
Applicants must have a clear action plan, community engagement model, and capacity for fund management. If you already meet these criteria, check your pre-approved business loan offer to see how you can accelerate your project implementation.
How to apply for the SFURTI scheme - Step-by-step process
- Visit the Official MSME portal: Go to the Ministry of MSME’s website to access scheme details and application formats.
- Identify a cluster: Select a traditional industry cluster suitable for development.
- Prepare a Detailed Project Report (DPR): Include objectives, budget, stakeholders, proposed facilities, and implementation strategy.
- Form an SPV (Special Purpose Vehicle): If required, register a cooperative, society, or company.
- Submit the proposal: Send the DPR to the designated Nodal Agency.
- Approval process: Upon evaluation, the Technical Agency and Scheme Steering Committee (SSC) will review and approve the project.
- Implementation: Once sanctioned, funds are released in phases, and the cluster activities commence.
SFURTI vs. other MSME schemes
| Feature/Criteria | SFURTI scheme | Other MSME schemes |
|---|---|---|
| Target beneficiaries | Traditional industry clusters and artisans | MSMEs across various sectors |
| Financial support | Up to Rs. 5 crore per cluster | Varies (credit-linked or subsidy-based) |
| Implementation structure | Cluster-based via Nodal Agencies | Direct or through banks and financial partners |
| Skill development | Yes | Yes |
| Market linkage support | Included | May or may not be included |
| Credit access | Indirect (through convergence) | Direct (e.g., MSME loan) |
Conclusion
The SFURTI Scheme is a significant initiative to support and revitalise India’s traditional industries through structured cluster development. It not only creates sustainable employment in rural areas but also helps preserve the rich cultural heritage of Indian crafts. By integrating financial aid, infrastructure, and marketing support, SFURTI offers artisans a path toward economic empowerment.
For businesses and artisans seeking to scale operations or invest in better facilities, exploring a business loan alongside SFURTI support can be a strategic move for growth.
