The objectives of the Scheme are as follows:

i. To organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability and economy of scale.
ii. To provide sustained employment for traditional industry artisans and rural entrepreneurs.
iii. To enhance marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing infrastructure.
iv. To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;

v. To make provision for common facilities and improved tools and equipment for artisans to promote optimum utilization of infrastructure facilities.
vi. To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner.
vii. To build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries.
viii. To look for setting up of multi-product cluster with integrated value chain and a strong market driven approach for viability and long term sustainability of the cluster.
ix. To ensure convergence from the design stage with each activity of the cluster formation and operations thereof.
x. To identify and understand cluster‟s target customers, understand their needs and aspirations and develop and present product lines to meet the requirement. Substantial focus should be on the buyer segment that places a premium on natural, eco-friendly, ethically sourced and the uniqueness of the Khadi and VI products.

xi. To develop specific product lines out of the currently offered diversified basket of heterogeneous products based on the understanding of the target consumer segment. A brand unification exercise also needs to be done to maximize the value.
xii. To make a paradigm shift from a supply driven selling model to a market driven model with the right branding, focus product mix and correct positioning and right pricing to make the offering holistic and optimal for each of the focus categories.
xiii. To tap the E-Commerce as a major marketing channel given the outreach and the growing market penetration of E-Commerce, there is a need to devise a quick strategy to make its presence felt in the E-Retail space.
xiv. To make substantial investment in the area of product design and quality improvement. There is a need to standardise the quality of inputs and processes so that the products meet the quality benchmarks. Research need to be done to develop new textures and finishes to cater to the prevailing market trends.

The Cluster Development Program under SFURTI is considered with the following objectives:

  1. To establish requisite common value addition cum processing center, raw material depot, which will improve the production, value-addition and expand the existing market base?
  2. Top -grade the technical skill of artisans, to minimize the time in production as well as increase the quality of the products.
  3. To improve the entrepreneurial skills of artisan, so as to make them potential and vibrant producers.