EDII plays a key role in revitalizing traditional industries through the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). SFURTI is an initiative by Ministry of MSME, Government of India to promote Cluster development. The scheme functions through a mechanism comprising Nodal Agencies (NA), Implementing Agencies (IA), Technical Agencies (TA), Cluster Development Executives (CDE) and other resource persons.

The Institute functions as a Technical Agency (TA) under the scheme and works in close collaboration with three Nodal Agencies—Khadi and Village Industries Commission (KVIC), Council of Handicrafts Development Corporations (COHANDS), and the Institute of Entrepreneurship Development, Odisha (IEDO).

Under SFURTI, each cluster is designed to benefit approximately 300 artisans through creation of Common Facility Centres (CFCs), distribution of modern tools and equipment, and extensive capacity building initiatives. These three-year projects serve to both preserve traditional knowledge systems and enable artisans to thrive in the evolving market landscape.