Government Initiatives
India’s handloom sector is witnessing positive growth, supported by rising exports and sustained government initiatives. The Government has set a target of achieving US$ 10 billion in handloom exports by 2031, while promoting Indian handlooms globally and encouraging indigenous production. In FY26, India’s handloom product exports increased to Rs. 1,359.14 crore (US$ 153.8 million), from Rs. 1,175.2 crore (US$ 135.91 million) in FY25, registering growth of around 13.2% in rupee terms. The sector is supported by initiatives covering skill development, design and product development, marketing assistance, cluster development and technology upgradation. The Government is also focusing on country-market diversification and targeted outreach through Export Promotion Councils, industry delegations and Indian Missions abroad to strengthen India's global market presence. Recent initiatives, including the GI & Beyond 2.0 Summit and the launch of the Digital Handloom Atlas, are aimed at improving visibility and market access for India's GI-tagged handloom products.
The Handloom Export Promotion Council (HEPC), under the Ministry of Textiles, supports exporters through government-backed export promotion and market-development initiatives. While the Market Access Initiative (MAI) supported activities such as international marketing, participation in trade fairs, capacity building and export facilitation, the scheme's revised guidelines were applicable up to March 2026. Export support has subsequently been strengthened through the Export Promotion Mission (EPM), which includes Niryat Protsahan and Niryat Disha and provides assistance related to trade finance, export compliance, logistics and overseas market access. The Government is also implementing the National Handloom Development Programme (NHDP) to provide end-to-end support for the handloom sector, including cluster development, infrastructure, marketing, skill development and technology-related interventions.
National Handloom Development Programme (NHDP)
The National Handloom Development Programme (NHDP) provides need-based financial assistance for the integrated development of the handloom sector and welfare of handloom weavers. Its key components include the Cluster Development Programme (CDP), Handloom Marketing Assistance (HMA), concessional credit under the Weaver MUDRA Scheme, infrastructure development, skill development, design and product development, and technology upgradation. From FY16 to FY26, financial assistance was provided to 797 handloom clusters, including 69 clusters in FY22, 110 in FY23, 96 in FY24 and 79 in FY25. Under HMA, around 16.12 lakh weavers were supported during the last five years through exhibitions, handloom expos, Dilli Haat and other marketing platforms. The Government has also developed the India Handmade e-commerce platform to facilitate online marketing of handloom products. NHDP continues to support the sector in FY27 with a budget allocation of Rs. 206.2 crore (US$ 21.72 million).
With the Mega Handloom Cluster Development Programme, need-based financial assistance of up to Rs. 30.2 crore (US$ 3.18 million) in Government of India share is provided per Mega Handloom Cluster for interventions including upgraded looms and accessories, solar lighting units, worksheds, design and product development, marketing support and common infrastructure such as value-addition, garmenting, reeling, processing and printing facilities. As of 2026, six Mega Handloom Clusters have been completed and are functional across six states, while five additional clusters are under implementation. The Government also supports Urban Haats to provide direct marketing platforms for handloom products; 28 Urban Haats are currently operational across the country.
Market Access Initiative (MAI)
The Market Access Initiative (MAI), introduced in 2018 and revised in 2021, was implemented to promote India's exports through targeted market-development and export-promotion activities. The revised MAI Scheme 2021 was applicable from April 1, 2021, to March 31, 2026. It provided financial assistance for activities including international marketing, participation in trade fairs and exhibitions, market research, capacity building, compliance-related activities, buyer-seller meets and other market-access initiatives. As the MAI's approved implementation period ended in March 2026, export-promotion support is now being strengthened through the Government's Export Promotion Mission (EPM), which provides a broader framework for improving access to trade finance, overseas markets, export-related compliance and market diversification.
Raw Material Supply Scheme (RMSS)
The Raw Material Supply Scheme (RMSS) is being implemented across the country to ensure the quality yarn to handloom weavers at reasonable prices. The scheme provides reimbursement of freight charges for transportation of all types of yarn and a 15% price subsidy on specified yarns, including cotton hank yarn, domestic silk, wool, linen and blended yarns made from natural fibres, subject to prescribed quantity limits. The subsidy is provided through Direct Benefit Transfer (DBT) to eligible beneficiaries. The scheme also aims to improve the availability and affordability of yarn, support weavers in accessing quality raw materials and enhance the competitiveness of the handloom sector. RMSS continues to be implemented in FY27, with a budgetary allocation of Rs. 201.2 crore (US$ 21.19 million) for FY27.