MINISTRY OF AGRO AND RURAL INDUSTRIES (MoARI)

Most people living in the rural areas of the country draw their livelihood from agriculture and allied sectors. Accordingly, the strategy of the Government has been to improve the economic and social conditions of the underprivileged sections of the rural population with emphasis on agricultural production and also the non-farm sector to promote productive employment opportunities, by integrating traditional production infrastructure, skills and locally available raw material.

The rural non-farm sector in India has been growing in aggregate size and increasingly contributing to rural income generation. The growing pace of international trade and globalisation presents both opportunities and challenges for the Indian economy, including the small enterprises sector, which consists of small scale, agro & rural industries and service/business entities.

Recognising that long-term development of Indian economy depends critically on the effective exploitation of the productive potential of the rural non-farm sector and development of village industries, the Ministry of Agro and Rural Industries (MoARI) was set up in September, 2001. This was done with the objectives of facilitating coordinated and focused policy formulation and effective implementation of programmes, projects, schemes, etc., for improving supply chain management, enhancing skills, upgrading technology, expanding markets and capacity building of the entrepreneurs/artisans and their groups/collectives.

ORGANISATION OF THE MINISTRY

The Ministry deals with the khadi and village and coir industries through the Khadi and Village Industries Commission (KVIC) and the Coir Board and coordinates implementation of two countrywide employment generation programmes, namely, the Rural Employment Generation Programme (REGP) and the Prime Minister’s Rozgar Yojana (PMRY) with the cooperation of State Governments, Reserve Bank of India (RBI) and other banks.

Khadi and Village Industries Commission

The Khadi & Village Industries Commission (KVIC), established by an Act of Parliament, is a statutory organization engaged in promotion and development of khadi and village industries for providing employment opportunities in the rural areas, thereby strengthening the rural economy. The KVIC has been identified as one of the major organisations in the decentralised sector for generating sustainable rural non-farm employment opportunities at low per capita investment. It undertakes activities like skill improvement, transfer of technology, research & development, marketing, etc., in the process of generating employment/self-employment opportunities in the rural areas.

Coir Board

The coir industry is a labour-intensive and export-oriented industry. It uses a by-product of coconut, namely, coir husk. The Coir Board, a statutory body established under the Coir Industry Act 1953, looks after the promotion, growth and development of the coir industry, including export promotion and expansion of the domestic market. The Coir Board implements a number of schemes, which include assistance for participation in exhibitions, training for skill development and assistance under Mahila Coir Yojana, training, financial assistance for modernisation of existing units, undertaking R&D activities, etc.

Employment Generation Schemes

The Ministry of Agro and Rural Industries (MoARI) implements two nation-wise employment generation programmes, namely, Rural Employment Generation Programme (REGP) and Prime Minister’s Rozgar Yojana (PMRY). Both these programmes are credit-linked subsidy schemes, which are implemented through commercial banks. While the REGP is implemented by the KVIC, the PMRY is implemented by the State Governments through the District Industries Centres (DICs).