Handloom Weavers receive support under the National Handloom Development Programme, where proposals for financial assistance are submitted by State Governments and other organisations. These proposals are evaluated as per scheme guidelines, and funds are allocated based on available budgets. The programme has enabled state-wise financial assistance for handloom clusters and marketing events over the last five years and the current year. Additionally, the Raw Material Supply Scheme ensures the availability of yarn to handloom weavers across the country at reasonable prices, strengthening productivity and market access.
The following types of benefits are available for Handloom Organisations/Weavers under the schemes:-
i. Under Concessional Credit /Weaver MUDRA Scheme, margin money assistance @20% of the loan amount, maximum upto Rs.25,000/- for individual weaver/weaver entrepreneur & maximum upto Rs.20.00 lakh for handloom organizations, interest subvention upto 7% & credit guarantee fee for handloom organizations for a period of three years are provided.
ii. Under Hathkargha Samvardhan Sahayata (HSS), financial assistance is provided for upgradation of looms/accessories of the handloom weavers/workers so as to improve quality of the fabric & productivity and reduce drudgery. Cost sharing of HSS items is in the ratio of 90% by the GoI and 10% by the beneficiary.
iii. For construction of individual workshed, sharing pattern for BPL/SC/ST/Women/Differently- abled beneficiaries – 100% by the GoI and for other beneficiaries – 75% by the GoI and 25% by the beneficiary.
iv. For purchase of Lighting Unit (including solar lighting system), financial assistance is provided to handloom weavers/workers. Cost sharing of lighting unit is in the ratio of 90% by the GoI and 10% by the beneficiary.
v. Under Raw Material Supply Scheme (RMSS), reimbursement of freight charges for all types of yarn; and component of 15% price subsidy is given for cotton hank yarn, domestic silk, wool and linen yarn and blended yarn of natural fibres, with quantity caps.
State-wise no. of handloom clusters and marketing events assisted financially during the last five years from 2020-21 to 2024-25 and current year 2025-26 (upto 28.02.2026)
| S. No. | States/UTs | Handloom Clusters financially assisted | Handloom Marketing Events financially assisted |
| East Zone | |||
| 1 | Arunachal Pradesh | 22 | 33 |
| 2 | Assam | 29 | 103 |
| 3 | Bihar | 19 | 17 |
| 4 | Jharkhand | 2 | 6 |
| 5 | Manipur | 34 | 52 |
| 6 | Meghalaya | 3 | – |
| 7 | Mizoram | 18 | 37 |
| 8 | Nagaland | 4 | 56 |
| 9 | Odisha | 5 | 22 |
| 10 | Sikkim | 1 | 22 |
| 11 | Tripura | 12 | 31 |
| 12 | West Bengal | 13 | 15 |
| Total East Zone | 162 | 394 | |
| West Zone | |||
| 13 | Chhattisgarh | 5 | 6 |
| 14 | Gujarat | 5 | – |
| 15 | Goa | – | 2 |
| 16 | Madhya Pradesh | 8 | 26 |
| 17 | Maharashtra | 7 | 6 |
| Total West Zone | 25 | 40 | |
| North Zone | |||
| 18 | Haryana | – | 2 |
| 19 | Himachal Pradesh | 9 | 11 |
| 20 | Jammu & Kashmir | 2 | 13 |
| 21 | Laddakh | – | 3 |
| 21 | Punjab | – | 2 |
| 22 | Rajasthan | 2 | 7 |
| 23 | Uttrakhand | – | 8 |
| 24 | Uttar Pradesh | 38 | 54 |
| Total North Zone | 51 | 100 | |
| South Zone | |||
| 25 | Andhra Pradesh | 44 | 40 |
| 26 | Karnataka | 2 | 25 |
| 27 | Kerala | 15 | 7 |
| 28 | Puducherry | – | 2 |
| 29 | Tamil Nadu | 34 | 29 |
| 30 | Telangana | 26 | 22 |
| Total South Zone | 121 | 125 | |
| Grand Total | 359 | 659 | |
This information was provided by THE MINISTER FOR TEXTILES GIRIRAJ SINGH in a written reply to a question in Lok Sabha.
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