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Question

Difficulty: MediumEconomic Developments, Union & State Budgets, and Economic Surveys

In the context of Union Budget initiatives and central economic welfare developments in India, which of the following statements is correct regarding the 'PM Vishwakarma Scheme'?

  1. It is a fully funded Central Sector Scheme that provides collateral-free enterprise development loans at concessional interest rates alongside skill training for traditional artisans.Answer
  2. B
    It is structured as a Centrally Sponsored Scheme requiring a 50% matching financial contribution from State Governments for loan disbursement.
  3. C
    It strictly targets urban software developers and startup founders involved in advanced information technology manufacturing.
  4. D
    It delivers credit exclusively through direct window lending by the Reserve Bank of India without involving commercial or regional rural banks.

Answer

The correct statement is that the PM Vishwakarma Scheme is a fully funded Central Sector Scheme providing collateral-free credit at concessional interest rates, skill training, and toolkit incentives to traditional artisans.
The PM Vishwakarma Scheme was launched as a 100% Union Government-funded Central Sector Scheme. It provides end-to-end support to artisans and craftspeople, including collateral-free enterprise development credit up to ₹3 lakh at a concessional interest rate of 5%, skill upgrading, toolkit incentives, and marketing support.

Step-by-Step Solution

1
Analyze the funding pattern and operational structure of the PM Vishwakarma Scheme announced in the Union Budget.
Identified that PM Vishwakarma is a 100% Central Sector Scheme fully funded by the Central Government with a financial outlay of ₹13,000 crore.
Understanding the financing mechanism differentiates Central Sector Schemes from Centrally Sponsored Schemes.
2
Evaluate the target beneficiary profile and key intervention components.
The scheme covers traditional artisans and craftspeople across 18 family-based traditional trades, offering recognition (ID card), skill verification/training, toolkit incentive, and collateral-free credit at a concessional interest rate of 5%.
Verifying target eligibility rules out distractor options alleging urban tech or non-traditional coverage.
3
Verify institutional banking implementation mechanisms.
Credit support is facilitated through scheduled commercial banks, RRBs, and cooperative banks, backed by interest subvention from the Union Government.
Demonstrates that central monetary institutions like the RBI do not provide direct retail loans.

Key Concept

PM Vishwakarma Scheme and Central Sector Budgetary Allocations
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Topics

Economic Developments, Union & State Budgets, and Economic Surveys

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