Gram Samridhi Yojana (GSY)

Loan subsidy & bank loan interest subsidy scheme for small & medium food processing units in rural areas

Government of India is planning to launch Gram Samridhi Yojana (GSY) to help unorganized food processing sector in India. The Food Processing Ministry to implement the scheme. The cottage industries, farm producer organizations & individual food processors will get benefited from the scheme.

ग्राम समृद्धि योजना (हिंदी में)

Gram Samridhi Yojana (GSY)
Benefits:Financial assistance, subsidy on loans & interests
Beneficiaries:Small/home-based food processing units
Budget:Rs. 3,000 crore


  • To help & encourage small & medium scale food processing units
  • To help them financially
  • To make sure they have easy access to the finances & loans
  • To help them in skills development, technology up-gradation & expansion
  • To encourage entrepreneurship & help youth setup small food processing units
  • To create employment & more jobs in the rural sector
  • To boost India`s economy


  • Home-based small food processing units
  • Farmer producer’s organizations
  • Individual food processors


  • Easy access to loans
  • Subsidy of upto Rs. 10 lakh for the unit
  • Subsidy on loan interest

The scheme will primarily help local farmers. The government`s focus is to double farmers income. The rural food processing units will process the local farm produce, package & market it.

Read More: List of schemes & subsidies by center government

The scheme will be 50% funded by the world bank. Rs. 1,500 crores from the world bank will be invested in the Gram Samridhi Yojana where as remaining Rs. 1,500 crores will be invested by the central & state governments. Rural incubation & business centers also will be setup under the scheme. Incubators will support with infrastructure & services. Business centers will help in launching new products, marketing & selling them.

The scheme is yet to be launched. Once approved the scheme will be launched in phases. In the first phase it will be implemented in Maharashtra, Punjab, Andhra Pradesh & Uttar Pradesh.


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