Context: 

Recently, the PM Vishwakarma Scheme got its approval by the Cabinet.

Background: 

• Announced by the Indian Prime Minister during his Independence Day speech.

Aim: 

• To help traditional craftspeople and artisans. 
• It can provide an economic boost to these professionals. 

Image Credits: PIB

Provisions: 

• Loan with Reachable Interest: With an outlay of ₹13,000 crore, the scheme will provide loans of up to a total of ₹3 lakh (in two parts) at an interest rate of 5%.
• Creating Skills: The scheme includes skilling programmes that offer a nominal stipend as well as financial help to purchase modern tools. 
• Coverage: It covers individuals from 18 trades such as cobblers, toy makers, laundrymen, barbers, masons and coir weavers. 
• Expectations: The government expects about five lakh families to be covered in the first year and 30 lakh families to benefit from the scheme over five years. 

Image Credits: Times of India

Challenges that need to be Consider:

• Missing the Real Problem: The scheme can help craftspeople and artisans only in accessing affordable credit from the formal banking system. 
  • The lack of access to formal credit may simply be a symptom rather than the cause of the underlying problem these communities face. 
• Lacking Patronage: These traditional art and craft professionals face the lack of patronage for their goods and services in the wider marketplace.
• Low Economic Output: In the case of other trades, less economic value is received by them.
• Debt Trap: If the scheme fails to open up new markets and simply extends loans to these communities, it would lead to a risk of concern of debt trap.
• Straitjacket: Laying stress on the intergenerational nature of knowledge dissemination in these communities, the scheme could end up leaving the next generation stuck in these traditional low-paying trades. 

The Path Ahead:

• Work Upon the Fundamental Problem: Government needs to take steps to overcome the fundamental problem of a lack of economic viability for their output. 
• Proper Implementation: The success of this well-intentioned scheme will depend on its implementation.
• Adequate Knowledge and Opportunities: Government needs to introduce professionals with the know-how and entrepreneurial spirit to help the craftspeople and artisans to upgrade them to cater to new markets and tap fresh opportunities.

News Source: The Hindu