The Government of India is strengthening tribal entrepreneurship and promoting tribal-led economic empowerment through TRIFED and NSTFDC.
NSTFDC disbursed ₹373.28 crore in FY 2024–25, while PM-JANMAN VDVKs expanded tribal livelihood support across 18 states.
NEW DELHI: Replying to an unstarred question in the Lok Sabha, the Union Minister of State for Tribal Affairs, Durgadas Uikey, informed the House that the Ministry of Tribal Affairs has been consistently working towards strengthening the economic foundations of Scheduled Tribe (ST) communities across India. Through its two key agencies—the Tribal Cooperative Marketing Development Federation of India (TRIFED) and the National Scheduled Tribes Finance and Development Corporation (NSTFDC)—the Ministry has contributed significantly to promoting tribal entrepreneurship and sustainable livelihood activities. These efforts are not merely welfare-driven but aim at long-term economic self-reliance by enabling tribal communities to participate meaningfully in value chains linked to agriculture, forest produce, handicrafts, and small enterprises.
The Minister underlined that these interventions have resulted in measurable economic impact by improving income levels, encouraging self-employment, and integrating tribal producers with national and global markets. The government’s approach, he said, combines institutional support, financial assistance, and market access to transform traditional skills into viable entrepreneurial ventures.
Government’s Parliamentary Reply Highlights Role of TRIFED and NSTFDC
Table: Institutional Framework for Tribal Entrepreneurship
| Institution | Role |
|---|---|
| Ministry of Tribal Affairs | Policy formulation and implementation |
| TRIFED | Marketing, value addition, MSP for MFP |
| NSTFDC | Credit linkage and concessional finance |
| State Governments | Implementation and beneficiary mobilization |
PM Janjatiya Vikas Mission
Strengthening Grassroots Tribal Enterprises
The Pradhan Mantri Janjatiya Vikas Mission (PMJVM), implemented through TRIFED, forms the backbone of the government’s strategy to promote tribal entrepreneurship. The scheme envisions strengthening tribal livelihood systems by encouraging efficient, equitable, and self-managed use of natural resources, including agricultural produce, Minor Forest Produce (MFP), and non-farm products. A key component of PMJVM is the establishment of Van Dhan Vikas Kendras (VDVKs), which act as localized hubs for value addition, processing, packaging, and marketing.
Each VDVK receives financial support of ₹15 lakh, enabling tribal groups to move beyond raw material sales to higher-value products. Since its inception in 2019–20, the program has sanctioned 4,105 VDVKs, benefiting over 12.27 lakh tribal members across the country. In addition, under the PM-JANMAN initiative, 539 more VDVKs have been approved, extending the scheme’s reach to particularly vulnerable tribal groups.
Table: PMJVM – Key Achievements
| Indicator | Details |
|---|---|
| Year of Launch | 2019–20 |
| Financial Support per VDVK | ₹15 lakh |
| Total VDVKs Sanctioned | 4,105 |
| Members Associated | 12,27,231 |
| PM-JANMAN VDVKs | 539 |
| PM-JANMAN Beneficiaries | 45,924 |
Market Access and MSP Support
TRIFED’s Dual Strategy
Beyond production and value addition, TRIFED plays a crucial role in ensuring that tribal products reach remunerative markets. The federation provides backward and forward linkages by connecting tribal artisans, gatherers, and producer groups with buyers through structured supply chains. Tribal products spanning metal crafts, textiles, jewelry, paintings, bamboo and cane items, terracotta, pottery, and organic food products are marketed through TRIFED’s physical outlets and e-commerce platforms.
Importantly, the PMJVM also provides for the procurement of Minor Forest Produce at Minimum Support Price (MSP), protecting tribal collectors from market volatility and distress sales. This MSP mechanism acts as a safety net while encouraging sustainable harvesting practices. Additionally, TRIFED regularly organizes and participates in national and international exhibitions, festivals, and trade fairs, giving tribal entrepreneurs visibility, branding opportunities, and direct market exposure—an essential step in transforming subsistence activities into scalable enterprises.
Table: TRIFED Support Mechanisms
| Area | Support Provided |
|---|---|
| Product Categories | Handicrafts, textiles, food, forest produce |
| Marketing Platforms | Physical outlets, e-commerce |
| MSP for MFP | Yes |
| Trade Promotion | Fairs, exhibitions, festivals |
| Value Chain Support | Backward and forward linkages |
NSTFDC Credit Schemes
Fueling Tribal Entrepreneurship Through Finance
The National Scheduled Tribes Finance and Development Corporation (NSTFDC), a Central Public Sector Enterprise under the Ministry of Tribal Affairs, complements TRIFED’s market-driven approach by providing much-needed financial support. NSTFDC facilitates concessional credit to eligible Scheduled Tribe individuals and Self-Help Groups (SHGs) for income-generating activities and self-employment ventures.
Its Term Loan Scheme supports viable projects costing up to ₹50 lakh, with funding of up to 90% of the project cost. Special emphasis is placed on women through the Adivasi Mahila Sashaktikaran Yojana (AMSY), which offers loans at just 4% interest. The Micro Credit Scheme addresses small-scale needs of SHGs, while the Adivasi Shiksha Rrinn Yojana (ASRY) supports higher education, including Ph.D. programs. Together, these schemes create a comprehensive financial ecosystem supporting enterprise creation, skill development, and education.
Table: Key NSTFDC Schemes
| Scheme | Purpose | Financial Support |
|---|---|---|
| Term Loan Scheme | Business & enterprise | Up to ₹50 lakh |
| AMSY | Women empowerment | Up to ₹2 lakh @ 4% |
| Micro Credit (MCF) | SHG financing | ₹50,000 per member |
| ASRY | Education loans | Up to ₹10 lakh |
Venture Capital Fund for STs: Supporting Scalable Tribal Enterprises
To further promote entrepreneurship among Scheduled Tribes, the Ministry of Tribal Affairs has launched the Venture Capital Fund for Scheduled Tribes (VCF-ST). This initiative is designed to support growth-oriented tribal enterprises by providing concessional venture capital finance, particularly to businesses with high employment and scaling potential. Unlike traditional loans, the VCF-ST focuses on equity and quasi-equity support, enabling tribal entrepreneurs to expand operations without excessive debt burden. Since its inception, the scheme has supported enterprises in states such as Chhattisgarh and Telangana, reflecting a growing confidence in tribal-led private sector ventures. The government believes that such interventions will help create tribal business leaders who can integrate with mainstream industry while retaining community-centric values.
Table: VCF-ST Beneficiaries
| State | Beneficiary | Assistance Sanctioned (₹ crore) |
|---|---|---|
| Chhattisgarh | Hemal Food Product Pvt Ltd. | 3.41 |
| Telangana | Harleys India Pvt. Ltd. | 5.00 |
NSTFDC Disburses ₹373.28 Crore in FY 2024–25; PM-JANMAN VDVKs Expand Tribal Livelihood Footprint Across 18 States
Sharp Rise in Credit Flow and Livelihood Support Signals Stronger Outreach
The Union Government’s targeted interventions for economic empowerment of marginalized communities recorded a significant expansion in FY 2024–25, with the National Scheduled Tribes Finance and Development Corporation (NSTFDC) disbursing ₹373.28 crore in loans to 88,758 beneficiaries across States and Union Territories. The data was presented in Annexure-II while replying to Lok Sabha Unstarred Question No. 3117 on December 18, 2025. This marks the highest annual disbursement by NSTFDC in the last three financial years, reflecting enhanced implementation of concessional credit schemes aimed at promoting self-employment, entrepreneurship, and income generation. The increase also coincides with broader policy emphasis on inclusive finance and livelihood-based welfare rather than direct subsidies. Alongside this financial push, the government has also expanded the PM-JANMAN Van Dhan Vikas Kendra (VDVK) initiative, strengthening tribal livelihoods through community-owned value addition enterprises. Together, these interventions indicate a deliberate shift toward long-term economic empowerment models, though regional disparities in uptake remain a policy concern.
Table 1: Overall Snapshot – NSTFDC Loan Disbursement (FY 2024–25)
| Indicator | Data |
|---|---|
| Total Loan Disbursed | ₹373.28 crore |
| Total Beneficiaries | 88,758 |
| Financial Year | 2024–25 |
| Parliamentary Source | Lok Sabha Unstarred Q. No. 3117 |
| Date | December 18, 2025 |
Three-Year Trend Shows Recovery and Expansion in FY 2024–25
A review of NSTFDC’s loan disbursement over the last three financial years reveals notable fluctuations, culminating in a sharp rebound in FY 2024–25. In FY 2022–23, the corporation disbursed ₹299.29 crore to 72,992 beneficiaries, followed by a decline in FY 2023–24, when ₹242.21 crore reached 52,432 beneficiaries. The substantial jump in FY 2024–25 not only surpasses the previous two years in absolute loan value but also reflects a significant widening of beneficiary coverage.
Officials attribute this surge to improved coordination with State Channelizing Agencies, faster loan processing, and increased awareness among eligible beneficiaries regarding NSTFDC schemes. The data also suggests that states with better administrative readiness and targeted outreach mechanisms were able to absorb higher credit volumes. However, the uneven year-on-year performance underscores the importance of consistent implementation capacity at the state level to ensure stable and predictable access to institutional finance for marginalized communities.
Table 2: NSTFDC Loan Disbursement – Three-Year Snapshot
| Financial Year | Loan Amount (₹ crore) | Beneficiaries |
|---|---|---|
| 2022–23 | 299.29 | 72,992 |
| 2023–24 | 242.21 | 52,432 |
| 2024–25 | 373.28 | 88,758 |
Mizoram, Andhra Pradesh, Telangana and Gujarat Lead FY 2024–25 Performance
State-wise data for FY 2024–25 highlights significant concentration of loan disbursement in select states. Mizoram emerged as the top recipient in value terms, with ₹69.48 crore disbursed to 3,529 beneficiaries, reflecting high per-capita loan support. Andhra Pradesh and Telangana followed with strong performance both in loan volume and beneficiary coverage. Andhra Pradesh received ₹60.39 crore benefiting 12,899 individuals, while Telangana recorded ₹51.74 crore disbursed to 10,777 beneficiaries. Gujarat stood out for its exceptionally large beneficiary base, with ₹49.31 crore reaching 18,461 beneficiaries—one of the highest counts nationally. This pattern suggests differing state-level strategies, with some states prioritizing larger ticket loans and others focusing on wider coverage. The data also indicates that proactive state machinery and effective grassroots mobilization play a decisive role in maximizing scheme impact.
Table 3: Top Performing States – NSTFDC FY 2024–25
| State | Loan Disbursed (₹ crore) | Beneficiaries |
|---|---|---|
| Mizoram | 69.48 | 3,529 |
| Andhra Pradesh | 60.39 | 12,899 |
| Telangana | 51.74 | 10,777 |
| Gujarat | 49.31 | 18,461 |
| West Bengal | 22.34 | 8,828 |
Mixed Regional Performance Highlights Uneven Financial Inclusion
While several states reported strong performance, the data also reveals stark disparities. Large states such as Uttar Pradesh saw negligible disbursement—₹0.02 crore to just two beneficiaries—while Bihar recorded no loan disbursement in FY 2024–25. States and UTs including Goa, Haryana, Andaman & Nicobar Islands, and Dadra & Nagar Haveli also reported nil or marginal activity. In contrast, Ladakh recorded its first-ever NSTFDC disbursement of ₹0.74 crore to 13 beneficiaries, marking a symbolic entry into the scheme’s coverage. Chhattisgarh demonstrated a sharp improvement, with disbursement rising to ₹4.99 crore benefiting 4,837 individuals, compared to ₹2.27 crore to just 503 beneficiaries in the previous year. These contrasts underline structural and administrative gaps that continue to affect equitable access to concessional finance.
Table 4: Selected States – Low or Emerging Performance
| State/UT | Loan Disbursed (₹ crore) | Beneficiaries |
|---|---|---|
| Uttar Pradesh | 0.02 | 2 |
| Bihar | 0.00 | 0 |
| Ladakh | 0.74 | 13 |
| Chhattisgarh | 4.99 | 4,837 |
| Odisha | 8.84 | 15,045 |
Annexure-I
State-wise Loans Disbursed and Beneficiaries under NSTFDC Schemes (Last Three Years)
(As referred to in reply to Part (a) to (c) of Lok Sabha Unstarred Question No. 3117, dated 18.12.2025)
| S. No. | State / UT | 2022-23 Amount (₹ Cr) | Beneficiaries | 2023-24 Amount (₹ Cr) | Beneficiaries | 2024-25 Amount (₹ Cr) | Beneficiaries |
|---|---|---|---|---|---|---|---|
| 1 | Andhra Pradesh | 41.20 | 13,669 | 55.51 | 27,221 | 60.39 | 12,899 |
| 2 | Andaman & Nicobar | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 |
| 3 | Arunachal Pradesh | 7.00 | 1,835 | 0.26 | 13 | 0.18 | 17 |
| 4 | Assam | 0.00 | 0 | 0.40 | 43 | 0.24 | 21 |
| 5 | Bihar | 0.00 | 0 | 0.03 | 3 | 0.00 | 0 |
| 6 | Chhattisgarh | 2.96 | 1,216 | 2.27 | 503 | 4.99 | 4,837 |
| 7 | Dadra & Nagar Haveli | 0.00 | 0 | 0.05 | 6 | 0.00 | 0 |
| 8 | Goa | 0.00 | 0 | 0.00 | 1 | 0.00 | 0 |
| 9 | Gujarat | 10.20 | 5,224 | 28.10 | 11,848 | 49.31 | 18,461 |
| 10 | Haryana | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 |
| 11 | Himachal Pradesh | 0.57 | 120 | 0.02 | 2 | 0.31 | 33 |
| 12 | Jammu & Kashmir | 12.73 | 535 | 2.95 | 106 | 11.02 | 409 |
| 13 | Jharkhand | 0.03 | 756 | 6.84 | 1,703 | 2.47 | 135 |
| 14 | Karnataka | 15.82 | 1,927 | 8.53 | 1,003 | 18.54 | 1,368 |
| 15 | Kerala | 7.21 | 666 | 4.47 | 258 | 6.85 | 567 |
| – | Ladakh | – | – | – | – | 0.74 | 13 |
| 16 | Madhya Pradesh | 53.92 | 10,857 | 17.60 | 828 | 16.61 | 1,582 |
| 17 | Maharashtra | 6.58 | 1,204 | 25.24 | 1,528 | 5.68 | 1,005 |
| 18 | Manipur | 0.25 | 57 | 2.35 | 174 | 1.03 | 65 |
| 19 | Meghalaya | 4.71 | 1,227 | 4.76 | 1,193 | 2.98 | 112 |
| 20 | Mizoram | 52.96 | 3,584 | 68.57 | 4,573 | 69.48 | 3,529 |
| 21 | Nagaland | 0.20 | 1 | 12.00 | 771 | 6.27 | 282 |
| 22 | Odisha | 0.63 | 4,337 | 3.62 | 17,025 | 8.84 | 15,045 |
| 23 | Rajasthan | 7.89 | 1,856 | 7.12 | 885 | 1.30 | 1,091 |
| 24 | Sikkim | 0.00 | 0 | 0.34 | 27 | 2.02 | 46 |
| 25 | Tamil Nadu | 10.87 | 3,403 | 32.66 | 7,327 | 12.10 | 6,437 |
| 26 | Telangana | 45.84 | 11,861 | 32.19 | 11,369 | 51.74 | 10,777 |
| 27 | Tripura | 0.48 | 20 | 20.15 | 2,234 | 16.96 | 569 |
| 28 | Uttar Pradesh | 0.00 | 0 | 0.03 | 4 | 0.02 | 2 |
| 29 | Uttarakhand | 0.81 | 244 | 0.33 | 8 | 0.86 | 628 |
| 30 | West Bengal | 16.43 | 8,393 | 15.27 | 4,486 | 22.34 | 8,828 |
| Total | All States/UTs | 299.29 | 72,992 | 242.21 | 52,432 | 373.28 | 88,758 |
PM-JANMAN VDVK: ₹22.98 Crore Sanctioned Across 18 States
Parallel to the NSTFDC credit expansion, the government has strengthened tribal livelihood infrastructure under the PM-JANMAN Van Dhan Vikas Kendra (VDVK) initiative. According to Annexure-I tabled in the same Lok Sabha reply, ₹22.98 crore has been sanctioned for establishing 539 VDVKs across 18 States and Union Territories, covering 45,924 tribal beneficiaries.
The VDVK model focuses on community-owned enterprises for processing, branding, and marketing minor forest produce, enabling tribal communities to move up the value chain. This initiative forms a crucial pillar of the broader Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN), which aims to bridge long-standing development gaps in tribal areas through entrepreneurship-driven solutions rather than purely welfare-based interventions.
Table 5: PM-JANMAN VDVK – National Overview
| Indicator | Data |
|---|---|
| Total Funds Sanctioned | ₹22.98 crore |
| Total VDVKs | 539 |
| States/UTs Covered | 18 |
| Beneficiaries | 45,924 |
Rajasthan, Madhya Pradesh, Andhra Pradesh and Odisha Dominate VDVK Outreach
Among the states, Rajasthan emerged as the top beneficiary in financial terms, receiving ₹4.42 crore for 51 VDVKs and covering 8,842 beneficiaries—the highest beneficiary count under the PM-JANMAN VDVK scheme. Madhya Pradesh led in the number of VDVKs sanctioned, with 83 Kendras supported by ₹2.55 crore, benefiting 5,091 individuals. Andhra Pradesh followed with 73 VDVKs, ₹3.08 crore in sanctioned funds, and 6,162 beneficiaries, while Odisha recorded 66 VDVKs with ₹2.63 crore covering 5,244 beneficiaries. Together, these states account for a substantial share of the scheme’s financial allocation and grassroots reach, reflecting focused implementation in tribal-dominated regions.
Table 6: Leading States – PM-JANMAN VDVK
| State | Funds (₹ crore) | VDVKs | Beneficiaries |
|---|---|---|---|
| Rajasthan | 4.42 | 51 | 8,842 |
| Madhya Pradesh | 2.55 | 83 | 5,091 |
| Andhra Pradesh | 3.08 | 73 | 6,162 |
| Odisha | 2.63 | 66 | 5,244 |
Annexure-II
PM-JANMAN VDVK: State-wise VDVKs Sanctioned, Beneficiaries and Funds Sanctioned
(As referred to in reply to Part (a) to (c) of Lok Sabha Unstarred Question No. 3117, dated 18.12.2025)
| Sl. No. | State / UT | VDVKs Sanctioned | Beneficiaries | Funds Sanctioned (₹ Cr) |
|---|---|---|---|---|
| 1 | Andaman & Nicobar | 1 | 56 | 0.03 |
| 2 | Andhra Pradesh | 73 | 6,162 | 3.08 |
| 3 | Chhattisgarh | 16 | 2,395 | 1.20 |
| 4 | Gujarat | 21 | 1,050 | 0.53 |
| 5 | Jharkhand | 35 | 2,876 | 1.44 |
| 6 | Karnataka | 33 | 1,836 | 0.92 |
| 7 | Kerala | 7 | 537 | 0.27 |
| 8 | Madhya Pradesh | 83 | 5,091 | 2.55 |
| 9 | Maharashtra | 40 | 3,624 | 1.81 |
| 10 | Manipur | 2 | 600 | 0.30 |
| 11 | Odisha | 66 | 5,244 | 2.63 |
| 12 | Rajasthan | 51 | 8,842 | 4.42 |
| 13 | Tamil Nadu | 37 | 2,403 | 1.20 |
| 14 | Telangana | 25 | 1,427 | 0.73 |
| 15 | Tripura | 30 | 2,550 | 1.28 |
| 16 | Uttarakhand | 9 | 634 | 0.32 |
| 17 | Uttar Pradesh | 5 | 319 | 0.16 |
| 18 | West Bengal | 5 | 278 | 0.14 |
| Total | All States / UTs | 539 | 45,924 | 22.98 |
Rajasthan Leads in Funding and Beneficiaries
- Rajasthan emerged as the top-performing state with ₹4.42 crore sanctioned.
- The state accounts for the highest number of beneficiaries (8,842) and 51 VDVKs, highlighting strong grassroots implementation.
Major Contributors
- Odisha: ₹2.63 crore | 66 VDVKs | 5,244 beneficiaries
- Madhya Pradesh: ₹2.55 crore | 83 VDVKs (highest) | 5,091 beneficiaries
- Andhra Pradesh: ₹3.08 crore | 73 VDVKs | 6,162 beneficiaries
These states together account for a significant share of both financial allocation and beneficiary outreach.
Northeastern and Tribal-Dominated States
- Tripura: ₹1.28 crore | 30 VDVKs
- Jharkhand: ₹1.44 crore | 35 VDVKs
- Manipur: ₹0.30 crore | 2 VDVKs
The data reflects focused intervention in tribal-dominated regions under the PM-JANMAN framework.
Smaller Allocations
States like Andaman & Nicobar, West Bengal, Uttar Pradesh, and Kerala recorded relatively lower fund allocations and beneficiary numbers, indicating either pilot-level implementation or early-stage rollout.
Policy Context
The PM-JANMAN (Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan) initiative aims to strengthen tribal livelihoods, promote value addition of minor forest produce, and enhance income security through the Van Dhan Vikas Kendra (VDVK) model.
***
Key Takeaway: Progress with Persistent Regional Gaps
The combined data on NSTFDC loan disbursement and PM-JANMAN VDVK implementation points to a strong policy push toward economic empowerment through credit access and community-based enterprises. FY 2024–25 represents a three-year high for NSTFDC lending, while the steady expansion of VDVKs reflects growing emphasis on sustainable tribal livelihoods.
However, stark inter-state disparities—particularly in large states like Uttar Pradesh and Bihar—highlight the need for stronger institutional outreach, awareness campaigns, and administrative preparedness. For inclusive growth to be truly national in character, targeted corrective measures will be essential to ensure that financial and livelihood schemes reach all eligible communities, irrespective of geography.
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