The Hindu Editorial Vocabulary– August 18, 2023; Day 453

Noble intentions: On the PM Vishwakarma scheme for traditional workers

Artisans need a ready market for their products, not just affordable credit

The PM Vishwakarma scheme approved by the Cabinet on Wednesday to help traditional craftspeople and artisans can provide an economic boost to these professionals. Announced by Prime Minister Narendra Modi during his Independence Day speech, the scheme, with an outlay of ₹13,000 crore, provides loans of up to a total of ₹3 lakh (in two tranches) at a concessional interest rate of 5%. It covers individuals from 18 trades such as cobblers, toy makers, laundrymen, barbers, masons (A craftsman who works with stone or brick) and coir weavers (A craftsman who weaves cloth). 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. But the scheme can help craftspeople and artisans only to the extent of freeing them from the difficulties they now face in accessing affordable credit from the formal banking system. However, the support extended to these struggling artisanal communities could come with its own risks in the way of unintended consequences. The challenges they face are far deeper than just the availability of cheap credit. By far the biggest of these that traditional art and craft professionals face is either the lack of patronage (The act of providing approval and support) for their goods and services in the wider marketplace, or in the case of other trades, a undervaluation of their economic output.

Crucially, the lack of access to formal credit may simply be a symptom rather than the cause of the underlying problem these communities face. No government scheme can help these communities in the long run unless it helps them overcome the fundamental problem of a lack of economic viability (Capable of being done in a practical and useful way) for their output. More seriously, if the scheme fails to open up new markets and simply extends loans to these communities in the name of promoting their welfare, it runs the risk of leaving not only the intended beneficiaries but also their families deeper in debt. Also, by laying stress on the intergenerational (Involving or across different generations) nature of knowledge dissemination (The opening of a subject to widespread discussion and debate) in these communities, the scheme could end up leaving the next generation willy-nilly (Without having a choice) stuck for perpetuity (for all time in the future) in these traditional low-paying trades, many of which are practised in a caste straitjacket (Anything immaterial that severely hinders or confines). The Vishwakarma scheme includes skilling programmes that offer a nominal stipend as well as financial help to purchase modern tools. Ultimately, the success of this well-intentioned scheme will hinge (to depend) on its implementation, an area where the government would do well to rope in (lure) professionals with the know-how and entrepreneurial flair (A natural talent) to help the craftspeople and artisans upgrade their offerings to cater to new markets and tap fresh opportunities.

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