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Business & Entrepreneurship

"Marketing Incentive" under the "Handloom Marketing Assistance" Component of the National Handloom Development Programme

The scheme aims to develop and promote marketing channels for handloom products to bring greater visibility to the sector and ensure commensurate remuneration to weavers. It provides Marketing Incentive to eligible handloom agencies for creating conducive conditions for marketing handloom products.

Authority

Central

Region

None

Status

Verified 2026

Updated

March 2026

What you get

Financial Assistance Structure | - Marketing Incentive Rate: 10% on average sales of handloom products of the last 3 years. | - State Level Organizations: Maximum ₹100.00 lakh (Central Government share). | - Primary Level Organizations: Maximum ₹15.00 lakh (Central Government share). | Category-wise Maximum Caps | - State Level Organizations (Handloom Corporations, Apex Cooperative Societies, National Level Handloom Organizations): ₹1,00,00,000/- Central Government share. | - Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations and Other Eligible Handloom Entities: ₹15,00,000/- Central Government share. | Financial Assistance Sharing | - General Cases: 50:50 sharing between Government of India and State Government. | - National Level Handloom Organizations/Societies: Entire assistance borne by Government of India. | - Benefit Distribution: 10% benefits shared equally between Organizations and Member Weavers through Direct Benefit Transfer. | Mode and Frequency of Disbursement | - Marketing Incentive will be given maximum for 3 years during the scheme period of 5 years. | - Release through Direct Benefit Transfer mechanism. | - Nodal Agency must release amount to eligible handloom agencies and their member weavers within 7 days of receipt. | Conditions for Availment/Continuation | - Amount to be used towards activities that attract consumers to gear up overall sales of handloom goods. | - Enable handloom agencies to adjust prices towards increasing cost competitiveness, improve designs, and invest in infrastructure. | - State Government recommendation subject to matching contribution by concerned State Government. | - Claims must be Goods and Services Tax compliant. | - No similar incentive/rebate received under any other Central Government scheme.

Who can apply

Handloom agencies including State level organizations such as Handloom Corporations, Apex Cooperative Societies and National Level Handloom Organizations, Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations and Other eligible Handloom entities.; The applicant must have made the final transaction of product sale to the consumer.; The applicant must use Handloom Mark or India Handloom Brand for their handloom products.; The applicant must have average sales turnover of handloom products for the last 3 years for incentive calculation.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What specific types of handloom organizations are eligible to apply for marketing incentive assistance under this national development programme?

You can apply if you are a state level organization like Handloom Corporations, Apex Cooperative Societies, or National Level Handloom Organizations, or primary level entities such as Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations, and other eligible handloom entities.

What is the calculation method and rate for determining the marketing incentive amount I can receive under this assistance scheme?

The marketing incentive is calculated at 10% of your average sales of handloom products over the last 3 years. This percentage forms the basis for determining your eligible incentive amount.

What are the maximum financial caps for marketing incentive assistance based on different categories of handloom organizations under this programme?

State level organizations can receive a maximum of ₹1,00,00,000/- as Central Government share, while primary level organizations are capped at ₹15,00,000/- as Central Government share.

How is the financial assistance shared between Central Government and State Government for different categories of handloom organizations?

For general cases, there is 50:50 sharing between Government of India and State Government, while for National Level Handloom Organizations, the entire assistance is borne by Government of India without state contribution.

What is the maximum duration for which I can receive marketing incentive assistance and how many times can I apply?

Marketing Incentive will be provided for a maximum of 3 years during the overall scheme period of 5 years, allowing limited-time support for eligible organizations.

What essential product marking requirement must I fulfill to be eligible for marketing incentive assistance under this handloom development programme?

You must use either the Handloom Mark or India Handloom Brand for your handloom products to demonstrate authenticity and compliance with national handloom standards.

What type of sales transactions are specifically excluded from consideration when calculating my eligible marketing incentive under this scheme?

Sales between handloom agencies, sales to government departments, sales under barter system, and sales by primary societies to apex societies or corporations are excluded from incentive calculation.

What documentation must I provide regarding my sales turnover to support my marketing incentive claim application?

You must provide average sales turnover details of handloom products for the last 3 years along with Goods and Services Tax compliant sales bills and invoices.

How is the marketing incentive amount distributed between the handloom organization and individual member weavers under this assistance programme?

The 10% marketing incentive benefits are shared equally between the handloom organizations and their member weavers through Direct Benefit Transfer mechanism for equitable distribution.

What is the mandatory timeline for fund release that nodal agencies must follow after receiving marketing incentive assistance from the government?

The Nodal Agency must release the marketing incentive amount to eligible handloom agencies and their member weavers within 7 days of receiving funds from the government.

What specific compliance requirement regarding taxation must all my sales documentation meet to qualify for marketing incentive assistance?

All your sales bills, invoices, and yarn purchase bills must be Goods and Services Tax compliant to ensure your marketing incentive claim meets the scheme requirements.

What restriction applies regarding receiving similar financial benefits from other government schemes while applying for this marketing incentive assistance?

You cannot receive similar incentive or rebate under any other Central Government scheme, and State Government will prefer claims from agencies who have not received such duplicate benefits.

How should National Level Handloom Organizations approach the application process differently compared to state and primary level handloom organizations?

National Level Handloom Organizations can submit their marketing incentive claims directly to the Office of Development Commissioner (Handlooms) without requiring State Government recommendations or matching contributions.

What evidence must I provide to demonstrate that my sales represent final transactions with actual consumers rather than intermediary handloom agencies?

You must provide final transaction proof of product sale to consumers, ensuring that your sales represent genuine end-consumer purchases rather than inter-agency transactions that are excluded from incentive eligibility.RetryClaude can make mistakes. Please double-check responses.