Handloom Marketing Incentive Scheme 2026: Up to ₹1 Crore Subsidy & Application Guide

At a glance

About the scheme

Implemented by the Office of the Development Commissioner (Handlooms) under the Ministry of Textiles, the Marketing Incentive component of the Handloom Marketing Assistance initiative aims to expand domestic and export markets for authentic handloom goods. By providing financial aid based on past sales performance, the scheme assists handloom agencies and individual weavers in adjusting retail prices, upgrading product designs, improving competitiveness, and enhancing overall market visibility.

Benefits

• Financial incentive calculated at 10% of average sales of handloom products over the preceding 3 years.
• Central Government assistance capped at a maximum of ₹1,00,00,000 for state-level organisations (Apex societies, corporations, and national bodies).
• Central Government assistance capped at a maximum of ₹15,00,000 for primary handloom weavers cooperative societies and other eligible grassroots bodies.
• Assistance shared on a 50:50 basis between the Central Government and State Governments for general cases.
• Entire assistance (100%) funded by the Government of India for National Level Handloom Organisations.
• Incentive benefits shared equally (50:50) between the beneficiary organisations and their member weavers via Direct Benefit Transfer.
• Assistance available for a maximum period of 3 years within the 5-year scheme duration.
• Mandatory fund disbursement by the Nodal Agency to handloom agencies and weavers within 7 days of receipt.

Who can apply (eligibility)

• Must be a registered handloom entity such as a State Handloom Corporation, Apex Cooperative Society, National Level Handloom Organisation, Primary Weavers Cooperative Society, Producer Company, Self Help Group (SHG), Joint Liability Group (JLG), or Federation.
• The applicant agency must have executed the final sale transaction directly to the consumer.
• Products sold must carry the Handloom Mark or India Handloom Brand certification.
• The applicant must possess verified handloom sales turnover records for the last 3 financial years.

Who cannot apply

• Sales conducted between two handloom agencies are not eligible.
• Sales of handloom items by primary cooperative societies or agencies to apex societies, federations, producer companies, or corporations are excluded.
• Sales made directly to Government departments or government agencies are excluded.
• Transactions completed under any barter system are not admissible.
• Agencies that have already received similar rebates or incentives under any other Central Government scheme are not eligible.

Documents required

• GST-compliant sales bills and invoices of handloom products.
• GST-compliant yarn purchase bills.
• Audited or verified records of average handloom product sales turnover for the last 3 years.
• Proof of Handloom Mark or India Handloom Brand usage.
• Documentary evidence confirming final retail sales transactions to end consumers.
• Duly filled claim proforma (Annexure - B8).
• State Level Project Committee recommendation and State Government sanction order (for state/primary bodies).
• Prescribed certificates as per Annexure - B9 and Annexure - B10 (for State Government processing).

How to apply

1. 1Compile all GST-compliant sales invoices, yarn purchase receipts, and turnover figures for the preceding 3 years.
2. 2Fill out the official application proforma in Annexure - B8 with complete agency and beneficiary details.
3. 3State and primary level entities must submit their completed application and supporting records to the concerned State Government department.
4. 4The State Government verifies the documentation, secures State Level Project Committee recommendation, and issues the sanction order for the matching state share.
5. 5The State Government forwards the consolidated claim to the Office of Development Commissioner (Handlooms).
6. 6National Level Handloom Organisations bypass the state route and submit claims directly to the Office of Development Commissioner (Handlooms).
7. 7Upon Central Government approval and fund release, the designated Nodal Agency transfers the incentive to the agency and member weavers via DBT within 7 days.

Frequently asked questions