Analysis of the Museum Grant Scheme

Policy Update
Shreeya Dixit

Background: 

इतिहासपुराणाभ्यां वेदं समुपबृंहयेत् ।
Itihāsa-purāṇābhyāṁ vedaṁ samupabṛṁhayet.
“The Vedas are enriched through history and stories (Itihasa and Purana).”

Museums are considered to be knowledge repositories and also a medium to transmit historical knowledge, shape collective memory, support research and education, and help societies interpret and narrate their cultural past. They also function as instruments of cultural diplomacy, showcasing a country’s heritage internationally and contributing to its soft power.

Unlike commercial enterprises, however, museums often generate benefits that extend beyond the individuals who visit them. Their educational, cultural, and social value is dispersed across society and across generations, while financial returns are limited and uneven. In public economics, such institutions are often treated as merit goods with public good characteristics, meaning they are likely to be underprovided if left entirely to market forces. This creates a strong rationale for public investment in museum infrastructure, preservation, and accessibility.

In India, many museums have historically struggled with inadequate funding, outdated infrastructure, limited digitization, staffing shortages, and low public engagement. Recognizing these challenges, the Government of India introduced the Museum Grant Scheme (MGS) in 2013 to support the establishment, modernization, digitization, and capacity building of museums across the country.

Functioning:

The scheme operates with three main goals for providing financial assistance which can be summarized in a table as: 

Source: Ministry of Culture & GOI, 2021

Eligibility and Financing

The museums covered under the scheme include: (a) museums having collections of Antiquities, Numismatics, Paintings, Ethnological collections, Folk art and others including Art & Crafts, Textiles, Stamps etc. (b) Online Virtual Museums displaying objects in any or all of the above disciplines and (c) Theme based Museums (d) Virtual Experiential Museums (VEM) (e) Projects of National Importance 

To be eligible for the scheme, the ministry has devised three categories: 

Source: Ministry of Culture & GOI, 2021

Some other additional requirements and their details can be further found on the official portal of the Ministry. 

Financial assistance varies across categories and project types. For Function I, the following financing structure is followed: 

Source: Ministry of Culture & GOI, 2021

While receiving financing, category II and III museums are eligible to receive 80% of the total project cost, whereas museums from the North-Eastern region are eligible to receive 90% of the total project cost. The release of the grants happens in three installments in the ratio of 2:1:1. The project should be completed in 3 years duration from the release of the first installment, and any delay should be properly justified to the Ministry. 

For Function II, the following grant system is used: 

Source: Ministry of Culture & GOI, 2021

The first installment consists of 75%, and the second installment of 25% is released once the previous installment has been utilized 100%. The grant for this purpose is given only once every 10 years. The objects are digitized using the JATAN Software, operated by the Centre of Development of Advanced Computing (C-DAC). The project should be completed in 2 years duration from the release of the first installment. 

For Function III, a similar financing structure and disbursement plan is followed as for Function II. 

Application Process

Applications under the scheme are submitted along with a Detailed Project Report (DPR), which includes project estimates, visitor profiles, modernization plans, sustainability measures, and details of museum collections. The proposals are scrutinized by an Expert Committee constituted by the Ministry of Culture, based on whose recommendations grants are approved and released. 

Monitoring

To ensure accountability, the scheme incorporates monitoring and evaluation mechanisms. Beneficiary institutions are required to submit periodic progress reports and a yearly report of the footfall for 5 years, maintain asset registers, and comply with prescribed safety and financial norms. Physical inspections are conducted before the release of the final instalment, and institutions found misusing funds may be required to return the grant and may be barred from future assistance. The received grant cannot be used for recurring expenses, while up to 60% of the sanctioned grant can be used for civil work. 

Performance: 

Under the Museum Grant Scheme, the Ministry of Culture has contributed to the promotion of cultural exchange by setting up 33 new museums, development of 23 existing museums, digitization of two museum’s collection and one virtual experiential museum (VEM) during the last five years (DALAL et al., 2025). The budget allocation under the scheme for the last five years is displayed in the following table as of March 2026: 

Source: PIB, 2026b 

The top ten states receiving maximum amount of grants under the MGS during the last five years as of March 2024 are: Mizoram, Madhya Pradesh, Andhra Pradesh, Nagaland, Uttar Pradesh, Manipur, Tamil Nadu, Rajasthan, West Bengal, Gujarat. The state-wise data of some of some of the top states with fund sanctioned, released, utilized under the scheme for the last five years as of March 2026 is as follows:

Source: PIB, 2026

Digital documentation of antiquities has been completed at five site museums of the Archaeological Survey of India in Madhya Pradesh in accordance with the format prescribed under the National Mission for Monuments and Antiquities.

A consolidated amount of INR 30 lakhs has been allotted to the National Mission on Monuments and Antiquities (NMMA) and it has so far documented 11,406 unprotected monuments (Built Heritage and Sites) and 12,48,775 antiquities.

In addition, the Ministry of Culture has been undertaking the digitization of collections from ten museums under its jurisdiction through the Jatan programme since April 2014. As of 31 January 2023, the Minister of Culture shared that a total of 3,06,582 artefacts from government museums and galleries had been digitized and made accessible online through the Museums of India portal (PIB, 2023a). In terms of digitization, for the last 3 years (2023-2025), the data for some of the states is as of March 2026: 

Source: PIB, 2026

Details for the Digitization of the Museum Collection under the Scheme for the last financial year are as follows as of March 2026: 

Source: PIB, 2026

The scheme guidelines require beneficiary museums to report annual footfall for five years after project completion. However, the lack of a publicly available consolidated database linking grants received with visitor outcomes remains a challenge for evaluating the scheme’s effectiveness. While project-level footfall data for museums funded under the Museum Grant Scheme is not publicly available, visitor statistics from major museums indicate continued public engagement with museum institutions.

The National Museum recorded an increase in visitor numbers from 245,463 in 2022-23 to 420,212 in 2024-25, while the Indian Museum attracted over 630,000 visitors in 2024-25. Similarly, the Victoria Memorial recorded more than 3.1 million visitors during the year. These figures suggest sustained public interest in museums, although the absence of project-level footfall data limits the ability to directly assess the impact of MGS funding on visitor engagement. (PIB, 2026d) 

Impact:

The impact of the Museum Grant Scheme is most visible in the diverse institutions it has supported, ranging from heritage havelis and folk museums to virtual museums and large-scale modernization projects. Rather than following a single model, the scheme has been used to restore historic structures, expand museum infrastructure, and introduce digital technologies across different regions of the country.

One of the examples includes the establishment and restoration-linked project at the 96-year-old Lahori Gate Haveli in Khaori Baoli near New Delhi. Approved by the Indira Gandhi National Centre for the Arts (IGNCA) as the Shahajanabad Interpretation Centre and Shahajanabad Museum, the project received INR 338.4 lakh, representing 80% of the total project cost of INR 422.86 lakh. Out of that fund, INR 41 lakh was spent on external works, while INR 260 lakh was allocated towards internal civil maintenance, including electrical installations, air-conditioning, fire safety systems, and façade lighting (TOI, 2025b). 

Similarly, the MGS assisted in the establishment of the Purvasha Folk and Tribal Art Museum, also known as the ODI Art Centre, located near Chilika lake in Odisha, which showcases folk and tribal art from various geographies, including unique Odia wooden doors, Dhokra figurines, and international exhibits (Frontline, 2026). 

The scheme’s impact has extended beyond physical spaces. In 2023, the Ministry was successful in setting up a web-based virtual museum at the Salar Jung Museum of Hyderabad, to document the story of the liberation movement of Hyderabad Samsthan and other immersive experiences in National Museum (PIB, 2023). These initiatives reflect a growing emphasis on digital access and new modes of visitor engagement.

The scheme has continued upgradation and modernisation efforts. Two of Chandigarh’s leading cultural institutions, the Government Museum and Art Gallery and the Natural History Museum in Sector 10, have submitted their proposals of nearly INR 30 crore for improving visitor experience through structural conservation, expanded CCTV surveillance and security measures, passenger lifts, improved storage facilities for collections, integration of digital and multimedia features such as virtual and augmented reality (AR/VR) experiences and audio guides (Hindustan Times, 2025; Hindustan Times, 2026). 

Similar developments are underway elsewhere. The Maharaja Birendra Kishore Manikya Museum in Tripura highlights the role of the scheme in promoting regional heritage, while the renovation of Chennai’s Victoria Public Hall incorporated plans for a rolling museum documenting the building’s history (NET, 2026; TOI, 2021a; TOI, 2025c). The Goa State Museum, situated in the old secretariat building in Panaji, has submitted a DPR under the MGS for shifting the museum to Ela in Old Goa due to space constraints, with a project cost of INR 35.3 crore as of March 2026, with INR 8 crore expected from the ministry under the scheme (TOI, 2024; TOI, 2026b). 

Emerging Issues:

A review of official reports, blog posts, and media articles highlighted some of the recurring issues that Indian museums have been facing. 

Lack of funding and resources

Despite the availability of financial assistance under the Museum Grant Scheme, resource constraints continue to affect the functioning of several museums. According to Dronah (2021), many museums lack adequate resources to improve visitor experiences, modernize infrastructure, and undertake preservation and digitization efforts. Established in 1902 and regarded as India’s oldest and largest forest museum, the institution has experienced declining visitor numbers while simultaneously requiring upgradation, digitization, and preservation of its collections. The museum has reportedly sought assistance under the Museum Grant Scheme and additional CSR support to address these concerns (TOI, 2026a). 

A similar situation is observed in the Purvasha Folk and Tribal Art Museum, also known as the ODI Art Centre. Reduced footfall, absence of steady funding, limited space for new acquisitions, and lack of insufficient funds is causing hindrance to. preservation of artifacts and documentation and digitization of artefacts, despite contributing significantly to rich folk culture and engaging community participation (Frontline, 2026).  

Lack of skilled workforce

Alongside financial constraints, Indian museums continue to face significant human resource challenges. The MGS addresses capital expenditure, but museums also require investments in institutional capacity. Dronah (2021) identifies the shortage of trained professionals involved in curation, conservation, and museum management as a key constraint affecting the sector. Most Western Museums have been observed to have directors who carry out a vision for the museum, unlike in our country, where IAS officers are transferred as a punishing posting, with no experience and training in leading curated museums (Rethinking the Future, n.d.). 

As per the Annual Report 2024-25 by the Ministry of Culture, the Indira Gandhi Rashtriya Manav Sangrahalaya (IGRMS) had a 30.5% vacancy with 100% vacancy in Group A cadre. Similarly, the Ministry’s failure to fill key positions at the National Gallery of Modern Art for over a decade prevented the relocation of 16,582 artworks to a new storage facility, leaving an investment of ₹3.81 crore idle since March 2014 (Ministry of Culture, 2024).

The shortage is even more pronounced at the Indian Museum, Kolkata. As of March 31, 2025, the Indian Museum had only 62 staff members against a sanctioned strength of 276. This significant understaffing affects daily operations, maintenance, visitor services, and the ability to run educational and outreach programs effectively. 

Source: Ministry of Culture & GOI, 2025

These examples suggest that while schemes such as the MGS can support physical infrastructure and modernization, the effectiveness of such investments ultimately depends on the availability of qualified professionals to manage collections, undertake conservation work, and engage with visitors. Museum modernization is not solely an infrastructural challenge but also a capacity challenge requiring trained curators, conservators, educators, archivists, and digital specialists. 

Lower engagement 

A recurring challenge faced by Indian museums is the ability to transform collections into meaningful visitor experiences. While museums have traditionally focused on preservation and outreach, several observers argue that public engagement remains limited. According to Rethinking the Future (n.d.), museums often conflate outreach with engagement and struggle to involve diverse sections of society in meaningful ways. The article further notes that museums should not be viewed solely as spaces of preservation but as environments for exploration, education, recreation, and community participation.

This challenge is closely linked to broader concerns regarding museum culture in India. As noted by Medium (2023), Indian museums continue to face difficulties in transitioning from static repositories of artefacts to dynamic institutions capable of attracting local and global audiences. Limited interactivity, difficulty in attracting younger visitors, insufficient digital infrastructure, and resource constraints continue to hinder this transition. Dronah (2021) similarly highlights the lack of engaging content and educational programmes as important contributors to low visitor footfall.

The issue is reflected in the experience of museums in Chennai. In 2021, museums had utilized only 2.5% of the ₹13.7 crore released under the scheme, citing delays arising from the COVID-19 pandemic. Media reports also observed limited efforts to attract visitors across eight museums. Stakeholders suggested greater digitization of collections, improved promotion of rare artefacts through digital platforms, and stronger engagement with schools to foster awareness of cultural heritage among younger generations (TOI, 2021b).

Experts have also argued that museums must increasingly adopt storytelling, technology-enabled experiences, exhibitions, events, and community participation initiatives to remain relevant to contemporary audiences. Such measures are particularly important in attracting younger visitors and transforming museums into vibrant cultural spaces rather than passive repositories of artefacts (TOI, 2026c).

Furthermore, while the National Museum’s educational tours reached more than 25,000 students, this represents only a small proportion of the potential audience that museums can engage through sustained educational outreach (Ministry of Culture, 2024).

Additionally, measuring engagement via publicly available data such as average footfall pre- and post-scheme, and educational outreach is missing, that lead to challenges.

Taken together, these observations suggest that the challenge facing Indian museums is not merely one of attracting visitors, but of creating meaningful and inclusive experiences that encourage repeated engagement with cultural heritage.

Documentation and Preservation

The preservation of artefacts and collections remains one of the most significant challenges facing Indian museums. The consequences of inadequate conservation practices were highlighted when the Archaeological Survey of India informed the Ministry of Culture about the damage caused to two invaluable artefacts housed at the Indian Museum in Kolkata, namely a 2nd century BC Yakshi figure and a 3rd century BC Mauryan lion sculpture. According to the ASI, the artefacts suffered irreparable damage due to negligent handling practices, prompting concerns regarding the long-term preservation of museum collections (Rethinking the Future, n.d.).

Beyond physical conservation, museums also face challenges relating to documentation and collection management. A NITI Aayog report highlighted that many museums lack proper documentation systems for recording and tracking artefacts and recommended the creation of a national portal for this purpose. The report further observed that several museums continue to operate from ageing infrastructure with inadequate security arrangements, poor climate-control systems, and poorly maintained buildings, all of which pose risks to collections and adversely affect visitor experience (Dronah, 2021).

Digitization efforts have expanded in recent years, yet significant gaps remain. Large portions of museum collections are still undocumented or inaccessible in digital form. For instance, only 92,689 artefacts out of more than 2 lakh artefacts at the National Museum have been digitized through the JATAN system. At the same time, inadequate infrastructure, poor maintenance, limited accessibility for persons with disabilities, and concerns regarding collection safety continue to affect museum operations (Ministry of Culture, 2024).

These challenges are also reflected in the display and utilization of collections. At the Indira Gandhi Rashtriya Manav Sangrahalaya (IGRMS), only 26% of the museum’s objects are currently on display, while the remainder remain in storage owing to space and maintenance constraints. Such limitations not only restrict public access to cultural heritage but also highlight the broader challenges associated with conservation, storage, and collection management (Ministry of Culture, 2024).

Taken together, these issues suggest that while the Museum Grant Scheme has supported modernization and digitization efforts, significant gaps remain in documentation, conservation, storage infrastructure, and collection management. Addressing these challenges is essential to ensure the long-term preservation and accessibility of India’s cultural heritage.

Governance and Administrative Challenges

Beyond funding, staffing, and preservation concerns, museums in India also face significant governance and administrative challenges. The NITI Aayog reports that museums function under multiple ministries and departments, resulting in fragmented administration and overlapping responsibilities. This has contributed to uneven policy implementation, particularly among state-run museums that operate under different departmental structures. Moreover, it is observed that more focus is given on famous structures while smaller and lesser-known museums receive comparatively limited support (Dronah, 2021).

Institutional governance challenges are also evident at the level of individual museums. Audit observations relating to the Indian Museum highlighted financial and administrative shortcomings, including the overstatement of capital works in progress by INR 8.45 crore due to incorrect accounting of unutilized advances, non-disclosure of significant capital commitments amounting to INR 41.52 crore, and incomplete accounting of land assets. The report also observed the absence of an internal audit wing, lack of a formal audit manual, and inadequate follow-up on outstanding deposits and payments (Ministry of Culture & GOI, 2025). 

Furthermore, funds earmarked for the renovation and modernization of the Earth Meteorite Gallery (INR 48.19 lakh) have remained idle for over five years due to project delays. Such administrative bottlenecks not only affect the utilization of public funds but also slow modernization efforts, reduce visitor experience, and limit museums’ ability to effectively showcase their collections (Ministry of Culture & GOI, 2025).

Taken together, these issues suggest that museum development is not solely constrained by financial or infrastructural limitations. Effective governance, institutional accountability, and coordinated policy implementation are equally important for ensuring that investments made under schemes such as the Museum Grant Scheme translate into sustainable outcomes. 

Way Forward: 

The MGS has played a significant role in establishment, development and digitization of museums in India. However, the findings suggest that funding alone is insufficient for effective museum development. Persistent challenges relating to funding sustainability, workforce shortages, public engagement, documentation, and governance indicate the need for a broader approach to museum development. 

Future support should focus on strengthening institutional capacity and closing the gap between existing and required staff. Various training programs, certifications and diplomas can be introduced to address the shortage of skilled professionals in museum management, conservation, and curation. In addition, greater emphasis should be placed on professional leadership positions and continuous capacity-building initiatives.

Strong leadership and management can act as catalysts for improving museum operations, enhancing visitor engagement, and expanding outreach efforts. Museums must also evolve from being viewed solely as repositories of artefacts to becoming dynamic centres of learning, exploration, and public engagement. Various initiatives like school and college partnerships, storytelling programs, exhibitions, AR/VR immersive experiences, and museum festivals can change the perception of museums to dynamic engaging knowledge repositories. Such efforts can encourage museums to become more accessible and relevant to diverse sections of society. 

As discussed in the earlier section, preservation and documentation should remain central to future interventions. Conservation laboratories should be strengthened, with greater focus on climate-sensitive storage, preventive conservation, and long-term collection management. Attention should be devoted not only to preserving artefacts but also to improving museum infrastructure and visitor amenities, both of which shape audience experiences. Digitization efforts should be amplified and a central, state and regional collections database can act as an important tracking instrument for the management and the audience as well. 

While the scheme already provides financial assistance in partnership with state and regional institutions, future efforts should encourage diversified sources of funding through public-private partnerships, CSR support and philanthropic fundings which can resolve the problem of sustainable funding and shortage of resources for repair and infrastructural developmental works as well. Lastly, governance reforms are essential for ensuring the long-term effectiveness of museum development initiatives. A centrally defined institutional process, better coordination across departments, stronger monitoring systems and outcome-based evaluation can significantly improve accountability and implementation challenges. Additionally, attention towards smaller museums should be increased which often play an important role in preserving local histories and fostering community engagement. 

Ultimately, public institutions require support not only in terms of finance but also through capacity building, value creation, and long-term preservation. Museums are no exception. Ensuring their sustainability is essential not only for safeguarding cultural heritage but also for strengthening their role as public goods that generate educational, cultural, and social value for future generations. 

References: 

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TOI. (2025a, January 16). Govt launches scheme for financial aid to museums. The Times of India. https://timesofindia.indiatimes.com/city/goa/govt-launches-scheme-for-financial-aid-to-museums/articleshow/117310811.cms 

TOI. (2025b, September 24). MCD to open Shahjahanabad centre and museum at restored Lahori Gate Haveli. The Times of India. https://timesofindia.indiatimes.com/city/delhi/mcd-to-open-shahjahanabad-centre-and-museum-at-restored-lahori-gate-haveli/articleshow/124075986.cms 

TOI. (2025c, December 24). CM unveils renovated Victoria Public Hall. The Times of India. https://timesofindia.indiatimes.com/city/chennai/cm-unveils-renovated-victoria-public-hall/articleshow/126147079.cms 

TOI. (2026a, January 10). British-era Gass Forest Museum crying for attention. The Times of India. https://timesofindia.indiatimes.com/city/coimbatore/british-era-museum-crying-for-attention/articleshow/126442593.cms 

TOI. (2026b, March 30). State’s museum project awaits Centre’s nod as cost rises by Rs 10cr. The Times of India. https://timesofindia.indiatimes.com/city/goa/states-museum-project-awaits-centres-nod-as-cost-rises-by-rs-10cr/articleshow/129910447.cms 

TOI. (2026c, June 2). Can Indian museums learn from the West? An expert’s take on engagement and preservation. The Times of India. https://timesofindia.indiatimes.com/city/chennai/can-indian-museums-learn-from-the-west-an-experts-take-on-engagement-and-preservation/articleshow/131469246.cms?utm_source=chatgpt.com 

About the Contributor: 

Shreeya Dixit is a Research and Editorial Intern at IMPRI. She holds a Master’s degree in Economics, and her research domain mainly includes development and public policy. 

Acknowledgement: 

The author would like to thank the entire IMPRI Team, Aananya Atri, and Vaishnavi Nandedkar for their valuable feedback and support for the article. 

Disclaimer

All views expressed in the article belong solely to the author and not necessarily to the organisation.