"Marketing Incentive" under the "Handloom Marketing Assistance" Component of the National Handloom Development Programme
10% marketing incentive on 3-year average sales · handloom organizations · up to ₹100 lakh
Handloom agencies — cooperatives, producer companies, self-help groups, and state-level corporations — can claim a 10% marketing incentive based on their average three-year sales to improve marketing and pricing. State-level bodies can receive up to ₹1 crore and primary societies up to ₹15 lakh in central government support. Apply through your State Government, which forwards claims to the Office of Development Commissioner (Handlooms), Ministry of Textiles.
About This Scheme
Handloom agencies — cooperatives, producer companies, self-help groups, and state-level corporations — can claim a 10% marketing incentive based on their average three-year sales to improve marketing and pricing. State-level bodies can receive up to ₹1 crore and primary societies up to ₹15 lakh in central government support. Apply through your State Government, which forwards claims to the Office of Development Commissioner (Handlooms), Ministry of Textiles.
Full official description
The scheme "Marketing Incentive" under the "Handloom Marketing Assistance" Component of the National Handloom Development Programme by the Ministry of Textiles, Government of India, aims to develop and promote marketing channels in domestic and export markets in a holistic and integrated manner to bring greater visibility to the sector and ensure commensurate remuneration to weavers. The scheme provides Marketing Incentive calculated at 10% on average sales of handloom products of the last 3 years with maximum caps of ₹1,00,00,000/- for state level organizations and ₹15,00,000/- lakh for primary societies, equally shared between State Government and Central Government except for National Level Handloom Organizations where entire assistance is borne by Government of India. The scheme is implemented by the Office of Development Commissioner (Handlooms) under Ministry of Textiles with applications accepted through prescribed proformas and State Government recommendations.
Benefits
- Marketing incentive: 10% of average handloom product sales over the last 3 years
- State-level organizations: maximum ₹1 crore (Central Government share)
- Primary societies, SHGs, producer companies: maximum ₹15 lakh (Central Government share)
- Cost shared 50:50 between Central and State Government (national-level orgs get 100% central funding)
- 10% of benefits distributed directly to member weavers via Direct Benefit Transfer (DBT)
- Incentive available for maximum 3 years within the 5-year scheme period
💡 Why Startups Should Care
This incentive rewards organizations that already have a proven sales track record — meaning the more successful your handloom marketing has been, the more you get back, up to ₹100 lakh for large state-level bodies.
Who Can Apply (Eligibility)
- Must be a handloom agency: state corporation, apex cooperative, primary weaver society, SHG, producer company, JLG, federation, or similar eligible entity
- Must have made final sales directly to consumers (inter-agency sales are not eligible)
- Products must carry Handloom Mark or India Handloom Brand
- Must have 3-year average sales turnover of handloom products
- Must not have claimed similar incentive from any other central government scheme
- Claims must be GST-compliant
Exclusions
- Sales by one handloom agency to another handloom agency are not eligible
- Sales by Primary Handloom organizations to non-eligible buyers may be excluded
How to Apply
- Compile sales bills/invoices and yarn purchase bills (GST-compliant) for the past 3 years.
- Calculate your average sales turnover for handloom products.
- Submit the claim documentation to the concerned handloom department office.
- The department verifies sales records and calculates the eligible incentive.
- The marketing incentive is disbursed based on the category cap (state or primary level organization).
Frequently Asked 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.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Sales bills/invoices for handloom products (GST-compliant)
- Yarn purchase bills (GST-compliant)
- Average sales turnover details of handloom products