AHVY Scheme

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Handicrafts constitute an important segment of the de-centralized/unorganized sector of our  economy. It is mainly rural based, having reach in backward and in-accessible area.


Originally, started as a part time activity in rural areas, it has now transformed into a flourishing economic activity due to significant market demand over the years. Handicrafts have big potential as they hold the key for sustaining not only the existing set of millions of artisans spread over length and breadth of the country, but also for increasingly large number of new entrants in the crafts activity.


Presently, handicraft sector is contributing substantially in employment generation and export but this sector has suffered due to very nature of being unorganized with additional constraints like lack of education, capital, poor exposure to new technologies, absence of market intelligence and poor institutional framework. In order to overcome these constraints, Baba Saheb Ambedkar Hastashilp Vikas Yojana (BAHVY) was launched in 2001-02 wherein the main thrust is on a projectised, need based approach for integrated development of potential handicrafts clusters with participation of the craft persons at all stages of implementation of the scheme with the ultimate objective of their empowerment and hence sustainability.


The scheme envisages a package of support to the cluster of handicraft artisans, which inter-alia includes basic inputs and infrastructure support in addition to capacity enhancement to cater to target markets.


While it is an undisputed fact that the Govt. of India and the State Governments have intervened in meaningful ways that have led to the revival and survival of crafts in the past few decades, in the light of new economic developments of one global unified market, handicrafts sector of India has to be strengthened further to be globally competitive.


There is therefore, compelling urgency to fill in critical gaps, which have been taken care of in the scheme based on CLUSTER APPROACH. The package of support under AHVY can be clubbed under the following five parts which have some components:-



  1. Diagnostic Survey and formulation of Project Plan
  2. Community empowerment for mobilization of artisans into Self Help Groups
  3. Issuance of Identity cards to the artisans (Departmental activity) 


  1. Development and supply of improved modern tools
  2. Design and Technical Development Workshops
  3. Integrated Design and Technical Development project.
  4. Training of artisans
  5. Organizing Seminar & Symposium.
  6. Technological status and need based study and research provision. 


  1. Organizing Exhibitions
  2. Publicity through printing and electronic mode and brand building campaign
  3. Setting up of Handicrafts emporia in own/rented/ outright purchase of building and renovation
  4. Market assessment, product assessment study and Study cum exposure tours for artisans and other stake holders tour
  5. Establishment of warehousing cum Common work shed
  6. Entrepreneurship Development Programme


  1. Margin Money support
  2. Wage compensation to cluster manager
  3. Service charges for Implementing Agencies Babasaheb Ambedkar Hastshilp Vikas Yojna
  4. Engagement of expert/ consultants/institutions,etc., for providing need based assistance including guiding and monitoring.
  5. Credit Guarantee (Departmental activity) 


  1. Establishment of Resource Centre for major crafts
  2. Establishment of E-kiosks
  3. Creation of Raw Material Banks
  4. Setting up of Common Facility Centre.
  5. Technological assistance by setting up of Facility Centres by Exporters/Entrepreneurs, etc. 


  1. Reputed NGOs, Cooperatives, Apex cooperative societies, Trusts.
  2. Reputed Organizations' -COHANDS, EPCH, CEPC, MHSC, IICT, NCDPD, NIFT, NID, University Deptt., DRDA, NISIET, EDIs,
  3. Central/ State Handloom and Handicrafts Development Corporations and other related
  4. Govt. Corporations/ agencies promoted by State Government or Financial Institutions.
  5. Federation of NGOs/ SHGs Consortium, Associations/Federations/Consortium  of
  6. Entrepreneurs, Designers, Exporters. Organizations registered under section 25 of Company act (Non profit), etc.
  7. Organizations registered under proper statute of state / central govt., for sustainable development of identified craft clusters.


Note: For few specific components eligible organizations are mentioned along with the details of the components and only those organizations will be eligible for implementing such components.


Outcome and Deliverables of AHVY Scheme: 

  1. Effective collective participation of all members involved in production and marketing process for optimal growth in human resource, production, business and income.
  2. Creation of centers of excellence (based on philosophy of cooperation) with well integrated forward & backward linkages.
  3. Up gradation of artisan's skill through appropriate design & technology intervention
  4. So as to enable them to use quality raw material, tools and equipments to produce value-added items.
  5. Self Sustained and self managed Artisans clusters
  6. State of Art, CFC to enhance production capacity
  7. Ability of artisans to sustain and grow in the competitive market.

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