Promotion of Non-Farm Sector was enshrined in the mission statement of NABARD at the time of its inception. The sector assumes significance in the context of the pressing need for reducing rural India’s dependence on agriculture income by encouraging alternate livelihood options. Development of this sector also helps in mitigating the migration of small and marginal farmers and agricultural labour to urban areas in search of livelihood opportunities in the other sectors.

Rural MSME Department (RMSMED) has always aligned itself with the emerging areas and designed several promotional schemes for the development of the non-farm and MSME sector. RMSMED has been making constant efforts to broad base, refine and rationalise its schemes in response to the needs at the field level. The focus has been on the programmes that enable development of skills, promote avenues for marketing, foster collectives of producers, GI promotion and encouraging development of the service sector to create sustainable livelihoods in the rural areas. In this direction, the Department has been committed to foster enhanced income of people dependant on the small, cottage and village industries, handloom, handicrafts and other rural crafts.

Objectives

The modernisation of IT systems, networks, and platforms is imperative for the organisation to remain relevant and develop effective and efficient solutions. The key objective of the Department is to provide such robust, secure and agile IT systems and services to the Bank in consonance with the latest available technology, with a view to improve operational efficiency and business productivity and also dissemination of real time data for decision making.

Core Functions of RMSMED:

• i. To promote sustainable employment and livelihood activities by development and implementation of grant-based products.
• ii. Skilling and capacity building of rural youth to empower them for employment (Self/ wage) to improve their family income.
• iii. To support promotion, development and nurturing of Off-Farm Producers' Organizations (OFPOs) to facilitate capacity building, easier access to credit, aggregation of produce and marketing for better remuneration, and bulk purchase of raw material.
• iv. To provide marketing opportunities to SHGs, Producer Organisations, artisans and weavers through Rural Haats, Rural Marts, exhibitions, fairs etc. and provide a platform for engagement with buyers, understanding market preferences and carrying out bulk sale of product through modern day marketing infrastructure, including onboarding to digital platforms.
• v. To promote innovation and entrepreneurship in agriculture and rural sectors by setting up Rural Business Incubation Centres which provide handholding support to startups.
• vi. To recognize the uniqueness of rural products and protect the dying arts and crafts by facilitating their registration as Geographical Indications.
• vii. Capacity building of channel partners, dissemination of information and propagation of sector specific activities through seminars, workshops, etc. in MSME Sector.

Initiatives of RMSMED:

i) Skill Development and Entrepreneurship among Rural Youth (SDERY)

In tune with Govt. of India’s goal, NABARD supports skill development programmes through a structured approach for addressing the skill gaps in rural India through demand and outcome-based programmes through multiple stakeholders in skill development ecosystem leading to wage/self-employment. NABARD has developed a digital platform “NABSKILL” (www.nabskillnabard.org) enabling complete digitalisation of skill interventions.

Concerted efforts are made to reach difficult and underdeveloped areas like Northeastern region, J & K, Ladakh, Hill states, island UTs, etc. Skill interventions of NABARD focus not only on traditional trades like tailoring, welding, and carpentry, but also on new-age skills such as computer skills, electronics, Drone operators, General Duty Assistant etc.

During FY2024-25, NABARD has sanctioned grant assistance of Rs 5.77 crore for 46 skill development programmes to train more than 3620 rural youth.

ii)Micro Enterprise Development Programme (MEDP)

Since its launch in 2006-07, MEDPs have been leveraged to impart/ upgrade skills of SHGs to serve as a foundation for setting-up of microenterprises in farm and non- farm activities. MEDPs are organized for 15 days with grant support upto Rs 1.50 lakh for 30 participants/ 20 participants in NER, Island UTs, hilly States, LWE & Aspirational districts with pro-rata grant support from NABARD. To enable enhanced participation, the Operational Guidelines were modified during 2023-24 and new entities such as Start-ups, Corporates, Companies, SHG Federations, POs, PACS, Marketing Federations and Subsidiaries of NABARD were made eligible as Project Implementing Agencies (PIAs). To assess the impact of the programme, trainees are now required to be monitored for a period of six months after completion of training.

iii)Livelihood and Enterprise Development Programme (LEDP)

NABARD mainstreamed LEDP in 2015-16 with a view to create sustainable livelihoods among SHG members and to realize maximum impact of skill up-gradation inputs. LEDP targets SHG clusters in contiguous villages involved in similar farm and non-farm activities and supports intensive skill building, refresher training, backward-forward linkages, handholding and escort services over two credit cycles to achieve the programme objectives at the grassroots level.

ii) Off Farm Producer Organisation (OFPO)

NABARD supports Off-farm Producer Organisations (OFPOs) which are formed by artisans, weavers, craftspeople etc., to promote rural enterprises, mechanisation, adoption of technology for design development, develop strong forward and backward linkages, ensure better income realisation, and profit distribution, which ultimately bring in sustainable and inclusive development through collectivisation.

Cumulatively (as on 31st March 2025), NABARD has sanctioned grant assistance of Rs 43.6 crore for promotion and development of 83 OFPOs covering 26,922 beneficiaries.

iii) Promotion Of GI Products

NABARD provides end-to-end support in facilitating pre-registration as well as post-registration activities for GI products. So far, NABARD has provided support for 470 products out of which, 138 have been granted registration by Department for Promotion of Industry and Internal Trade (DPIIT). The prominent products supported by NABARD for GI registration are Pochampally Ikat (Andhra Pradesh), Nizamabad Black Pottery (Uttar Pradesh), Gulabi Meenakari (Uttar Pradesh), Ladakh Wood Carvings (Jammu & Kashmir), Monpa Handloom Textile Products (Arunachal Pradesh), Bihu Dhol (Assam), Risa Textiles (Tripura), Bandhej Craft (Rajasthan), Ajrakh Print (Gujarat), Ringal Craft (Uttarakhand) etc.

iv) Marketing Initiatives

NABARD supports rural artisans and producers to widen and deepen their access to markets, to access new markets, increase their share in the final price paid by the consumer and to market their products effectively. NABARD also provides financial assistance for establishing rural haats, rural marts, stall in malls and also sponsors/ co-sponsors exhibitions.

A) Rural Haat

Rural Haats serves as primary markets in rural areas and play an essential role in the rural economy by providing business opportunities and promoting rural-to-rural trade.

NABARD supports Rural Haats by creating modern day infrastructure by collaborating with local agencies for facilitating producers to sell surplus agricultural and related items at these marketplaces and help local consumers to purchase consumer goods in their vicinity.

During FY 2024-25, NABARD has sanctioned grant assistance of Rs 1.35 crore as support towards establishment of 9 Rural Haats.

B) Rural Mart

NABARD supports setting up of Rural Marts which are retail marketing outlets for producers/ artisans/ SHGs to sell their local products. The objective of the scheme is to facilitate marketing linkages for artisans and farmers to increase the remuneration for the products through price discovery and provide a definite location for the interested buyers.

In lieu of the above support for setting up a physical (brick and mortar) ‘Rural Mart’, support shall also be available for PACS, NABARD promoted FPOs and OFPOs for purchase of mobile van to support them in marketing of their produce.

A new sub-product under ‘Rural Mart’ scheme is introduced which encourages SHG women exclusively to operate a Food Cafe/ Dhaba. Also, the Mart/ outlet can be used to help a group of rural youth/ SDP beneficiaries to earn a livelihood viz. Repair shop, and such an initiative may also be supported under the Scheme.

Rural Marts not only provide market access but also help in promoting entrepreneurship amongst producers.

During FY 2024-25, NABARD has sanctioned grant assistance of Rs 2.98 crore as support towards 28 Rural Marts and 20 Mobile Vans.

C) Exhibitions/ Melas

Exhibitions/ Melas provide a unique platform for artisans, members of OFPOs and SHGs to develop direct linkages with customers, link up with bulk buyers, understand their needs and requirements, eliminate the role of middlemen in marketing of rural products and earn additional income through sale of products.

Exhibitions/ Melas also create awareness amongst urban consumers about rural products. Participation in these Exhibitions empower the artisans to face the challenges, cross learning and design development for fetching better prices for their products.

Exhibitions/ Melas provide artisans, OFPO members, and SHGs with a valuable platform to establish direct connections with customers and bulk buyers. This interaction helps them understand market needs, cut out middlemen, and boost their income through direct sales.

These events also educate urban consumers about rural products. By participating, artisans gain the confidence to overcome challenges, engage in mutual learning, and innovate their designs, leading to better pricing for their products.

During FY 2024-25, 74 melas were conducted with grant assistance of Rs 9.03 crore.

D) Stall In Mall

An innovative scheme named ‘Stall in Mall’ was introduced to provide support for hiring and/ or setting up of temporary stalls in reputed malls, stores, market complexes, hotels, and prominent premises with good foot fall. This initiative helps the rural producer to learn about price discovery, customer preferences, need for changing designs, e-marketing etc. The initiative also helps in B2B meetings and helps artisans and weavers to get direct orders.

During FY 2024-25, two ‘Stall in Malls’ were supported with grant assistance of Rs 0.28 crore.

v) Rural Business Incubation Centres (RBICs)

NABARD supports eligible institutions for setting up Rural Business Incubation Centres (RBICs) to nurture early-stage innovative enterprises that have high growth potential in agribusiness by adding value and linking to producers and buyers. These centres incubate the start-ups working in identified areas of agriculture, allied activities, and non farm activities.

During FY 2024-25, NABARD has supported establishment of 03 Rural Business Incubation Centres in Arunachal Pradesh, Jammu & Kashmir and Kerala with total grant assistance of Rs 30.91 crore to incubate and support startups primarily in the focus areas of Agri-tech. Cumulatively, NABARD has supported 10 RBICs till 31 March 2025 and these have supported incubating over 1500 incubates and graduating 471 Startups.

vi) Catalytic Capital Assistance

NABARD has introduced the Catalytic Capital scheme to provide financial assistance to startups through Incubation Centres/ Subsidiaries of NABARD in order to encourage the formation and development of innovative, technology-based business enterprises in agriculture and identified sectors that will lead to venture creations, increased employment and leveraging of public and private investment. The catalytic capital support is positioned to act as a bridge between two stages viz. development and commercialization of innovative technologies/ products/ services in agriculture and rural sector.

During FY 2024-25, Rs  2.52 crore was disbursed under CCF to support 15 start-ups.

vii) Non-Farm Sector Projects in DPR Mode

Keeping in view the diversity of the nature of non-farm sector as well as requirement of disadvantaged regions of the country, during 2021-22, NABARD decided to support location specific interventions on pilot basis in DPR mode. The scheme was mainstreamed in 2022.

Support is extended for promotion and upscaling of innovative projects, promotion of non farm value chains, upgradation of innovations to business level, etc. NABARD extends support for development projects in the non-farm sector, which are not covered under the existing schemes.

During FY 2024-25, NABARD has sanctioned grant assistance of Rs 2.69 crore as support towards 12 projects.

viii) Gram Vihar

To give a fillip to the rural tourism sector in the country, NABARD has introduced a new scheme by the name of “Gram Vihar” to promote “homestay” wherein tourists stay with the local families and experience rural lifestyle as well as “away-day” i.e. one day trip without night stay. Special focus will be given on projects in North-Eastern and hilly regions, aspirational districts, and the areas supported under Tribal Development Fund.

During FY 2024-25, 4 projects were identified and considered for DPR preparation.

ix) Capacity Building Fund for Social Stock Exchange (CBF-SSE)

The Social Stock Exchange (SSE) has been created for listing social enterprises and voluntary organizations working for social welfare to raise capital as equity, debt or as units like a mutual fund. It is a separate segment on existing Stock Exchanges to leverage the securities market instruments to enable fund raising by eligible voluntary organizations.

As a part of this initiative, a Capacity Building Fund has been set up as an administrative fund under NABARD which will be used for awareness creation and capacity building of the different stakeholders of SSE, namely, Non-Profit Organizations (NPOs), For-Profit Enterprises (FPE), investors, funders, capacity builders, etc. about the aims and objectives of the SSE, its functioning and the opportunities for funding that it offers. With the support of stakeholders, because of the coordinated efforts of NABARD, NSE, BSE, and other experts, 10 NPOs were listed on SSE. One time incentive of Rs  5 lakh each provided to 9 NPOs. SGBS Unnati NPO, the first NPO listed on the Social Stock Exchange (SSE), prepared a project to train 10,000 rural youth from government colleges in soft skills. RMSMED subscribed to 5 lakhs worth of the ZCZP instruments on 5th March 2025 for a new project from this NPO.

xi) Special Credit Linked Capital Subsidy Scheme (SCLCSS)

Ministry of MSME, Govt. of India has introduced Special Credit Linked Capital Subsidy Scheme (SCLCSS) under National SC-ST Hub (NSSH) with the objectives to promote setting up of new enterprises and support existing enterprises in their expansion for enhanced participation in the public procurement. The scheme is applicable to the eligible SC/ST Micro and Small Enterprises of Sole proprietorships, Partnerships, Co-operative Societies, Private and Public Limited Companies engaged in Manufacturing and Service activities. NABARD is one of the nodal agencies for channelizing subsidy under the scheme.

For information regarding the scheme, one may visit the Government of India portal: https://www.scsthub.in/content/special-credit-linked-capital-subsidy-scheme

Click Here: List of completed/Ongoing projects. -
Click Here: List of NABARD supported GI products -

Contact Information:

Shri B R Premi

Information under RTI, Section 4(1)(b)