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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.

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Source: myScheme.gov.in ↗Last verified: 5 Oct 2026·YojnaGuru is not affiliated with or endorsed by any government body

About This Scheme

Launched in 2003-04, the scheme Cluster Development Scheme by the Industries & Mines Department, Government of Gujarat, aims to enhance the productivity and competitiveness of artisans in the handloom and handicraft sector through cluster-based development approach, addressing common issues faced by Micro and Small Enterprises such as improvement of technology, skills, quality, market access, and access to capital. The scheme provides various types of assistance like Diagnostic Survey, design Development, Training, Common Facility Centre, margin money, managerial subsidy, publicity, export, and Marketing Facility to clusters of minimum 25 artisans or more who work and produce goods at one place. The applicant must be part of a cluster with minimum 25 artisans and must be engaged in handloom and handicraft activities in Gujarat state. The scheme is implemented by Boards and Corporations working under Cottage Commissionerate and reputed institutions such as National Institute of Design, National Institute of Fashion Technology, etc.

Benefits

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.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.
  • •

    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 Documents

  • ✦
    Cluster Formation Certificate
  • ✦
    List Of Participating Artisans (Minimum 25)
  • ✦
    Identity Proof (Aadhaar Card/Voter ID/Passport)
  • ✦
    Address Proof
  • ✦
    Business Registration Certificate (If Applicable)
  • ✦
    Bank Account Details (Passbook Copy/Cancelled Cheque)
  • ✦
    Project Proposal (For Specific Assistance)
  • ✦
    Micro Small Medium Enterprise Registration Certificate
  • ✦
    Production Evidence (Product Samples/Photographs)
  • ✦
    Facility Details (Workshop/Production Area Documentation)
  • ✦
    Skill Certificates (If Available)

✦ Required ◦ Optional

How to Apply

IIn-person

Step 1: The representative of the cluster should approach one of the following implementing agency and request the hard copy of the prescribed format of the application form from the designated staff.

  • Boards and Corporations working under Cottage Commissionerate
  • National Institute of Design
  • National Institute of Fashion Technology
  • SHRUJAN, SAHAJ, ICCED & Freelance Designers
  • Gujarat Mahila Khadi Rashtriya Gramin Trust (the Nodal Agency)

Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).

Step 3: Submit the application for specific assistance required (Diagnostic Survey, Training, Common Facility Centre, etc.).

Step 4: Request a receipt or acknowledgement from the concerned authority to whom the application has been submitted. Ensure that the receipt contains essential details such as the date and time of submission, and a unique identification number (if applicable).

Post-Application Processes

Step 1: The implementing agency will conduct assessment of the cluster's needs, potential, and eligibility for the requested assistance through diagnostic surveys and field visits.

Step 2: Upon approval, the implementing agency will provide the sanctioned assistance and support services as per the approved project plan and scheme guidelines.

*Regular monitoring and evaluation will be conducted to ensure proper utilization of assistance and achievement of desired outcomes for cluster development.

Quick Info

Level
Central Government

Available In

Gujarat

Categories

Skills & EmploymentBusiness & Entrepreneurship

Data Sources