Finance Minister announces Venture Capital Fund for Scheduled Tribes

The Union Budget for 2022-23 outlined provisions for encouraging tribal entrepreneurs and giving a fillip to value addition and marketing of tribal products, with the measures proposed ahead of assembly elections in key tribal-dominated Schedule V and VI area states over the next 18 months.

The allocation to the tribal affairs ministry has increased 12.3% to ₹8,451.92 crore over the budget estimate of ₹7,524.85 crore for the previous fiscal. The jump is 36.7% compared to the revised estimate of ₹6,181.3 crore. Finance minister Nirmala Sitharaman announced a new scheme - Venture Capital Fund for Scheduled Tribes (STs) - to promote entrepreneurship among tribals who are oriented towards innovation and growth technologies.

"The scheme aims to provide hand-holding support to new incubation ideas and startup ideas by ST entrepreneurs. The scheme provides for concessional finance to the Scheduled Tribes entrepreneurs, who will create wealth and value for society and at the same time will promote profitable businesses," said the description of the scheme.


So far, the scheme had been restricted to entrepreneurs among Scheduled Castes.

The government has also decided to initiate a new mission - PM Jan Jatiya Vikas Mission - to bring about transformational changes in tribal livelihood. The prime objective of the mission will be ensuring round-the-year income generating opportunities for tribals by undertaking non minor forest produce activities as well.