India’s handloom sector, steeped in cultural legacy and craftsmanship, continues to be a major source of livelihood for millions. To support and uplift this community, the Government of India has introduced several schemes aimed at improving working conditions, boosting incomes, and expanding market access.
As we celebrate National Handloom Day 2025, here’s a closer look at seven flagship schemes that are transforming the lives of handloom weavers across the country.
1. National Handloom Development Programme (NHDP): Strengthening Clusters and Market Linkages
The NHDP is designed to foster the sustainable development of handloom weavers within and beyond cluster regions. With a focus on creating self-reliant, competitive units, the scheme offers comprehensive support—including supply of raw materials, design and technology upgrades, marketing through fairs and exhibitions, and development of permanent infrastructure like Urban Haats and marketing complexes. The goal is to modernize traditional practices while preserving the authenticity of handloom craftsmanship.
2. Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)
HWCWS provides vital social security coverage to handloom weavers through integrated insurance schemes. Under this initiative, life, accidental, and disability insurance is offered via the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and the Mahatma Gandhi Bunkar Bima Yojana (MGBBY). These schemes ensure financial stability and protection for weavers and their families during unforeseen circumstances.
3. Weaver MUDRA Loan Scheme: Accessible Finance for Weavers
The MUDRA Loan Scheme offers concessional loans to handloom weavers at an interest rate of just 6%, enabling them to invest in working capital or tools. Individual weavers are eligible for margin money assistance of up to Rs 25,000, while weaver organisations can avail up to Rs 20 lakh. The Ministry of Textiles also bears the credit guarantee fee to incentivize banks to lend. A dedicated MUDRA Portal facilitates direct transfer of benefits, simplifying the process for weavers.
4. Workshed Scheme: Improved Workspaces, Better Productivity
This scheme provides financial assistance for setting up individual worksheds near weavers’ homes, improving convenience and productivity. Each unit costs Rs 1.2 lakh. Weavers from marginalized backgrounds—such as BPL families, women, SC/ST, transgender, and differently-abled—receive full (100%) assistance, while others are eligible for 75% support. It promotes a family-friendly, safe, and dedicated environment for weaving.
5. Handloom Mark & India Handloom Brand: Authenticity and Recognition
To protect genuine handloom artisans from imitation and promote consumer trust, the government introduced the Handloom Mark (2006) and India Handloom Brand (2015). The Handloom Mark certifies that a product is authentically hand-woven, while the India Handloom Brand highlights premium-quality, environmentally compliant handloom products. Together, they enhance the value and marketability of traditional handloom items.
6. Comprehensive Handloom Cluster Development Scheme (CHCDS)
CHCDS is a major initiative aimed at developing Mega Handloom Clusters, each comprising 15,000 to 25,000 looms. The scheme provides financial assistance of Rs 40 to Rs 70 crore over five years, covering regions like Varanasi, Sivasagar, Virudhunagar, Murshidabad, Bhagalpur, Trichy, Prakasam & Guntur, and Godda. Key interventions include diagnostic studies, design development, raw material supply, worksheds for disadvantaged weavers, and skill training—all fully funded by the government. Other components such as technology upgrades, CAD design studios, and marketing infrastructure receive 80% central support.
7. Raw Material Supply Scheme (RMSS): Affordable Yarn, Better Competitiveness
Active from 2021–22 to 2025–26, RMSS—an upgraded version of the Yarn Supply Scheme—ensures the timely availability of quality yarn to handloom weavers at subsidized rates. The scheme promotes dyed yarn to encourage product diversification and reduce dependency on external dyeing units. Freight costs for all yarn types are reimbursed, and a 15% price subsidy is offered on cotton hank yarn, domestic silk, wool, linen, and blended yarns, subject to quantity limits. By reducing raw material costs, RMSS enhances the price competitiveness of handloom products in both domestic and global markets.
As India celebrates its rich handloom heritage this Handloom Day, these schemes stand as a testament to the government's commitment to preserving tradition while empowering artisans with modern tools, financial security, and market access.
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