Reasons to Invest

The Indian handloom industry is one of the oldest and largest cottage industries in India with 23.77 lakh looms. The level of artistry and intricacy achieved in handloom fabrics is unparalleled and certain weaves/ designs are still beyond the scope of modern machines.
The sector employs 43.31 lakh weavers directly and indirectly throughout the country with 77% of them being women.
Almost every state of India has a unique handloom product to offer such as Jacquard from Uttar Pradesh, Chanderi from Madhya Pradesh, Phulkar from Punjab, Brocare from Benares and Daccai from West Bengal.

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FDI Norms

100% FDI (automatic route) in the textile and apparel sector in India
100%

FDI Allowed

Did You Know?
Textiles & Apparels Sector has attracted over $3.74 bn of foreign direct investments during Apr 2000 - Mar 2021.

Government Support

Comprehensive Handloom Cluster Development Scheme

The objective is to develop Mega Handloom Clusters that are located in clearly identifiable geographical locations that specialize in specific products, with close linkages and inter dependents amongst the key players in the cluster by improving the infrastructure facilities, with better storage facilities, technology up-gradation in pre-loom/on-loom/post-loom operations, weaving shed, skill up-gradation, design inputs, health facilities etc

National Handloom Development Programme (NHDP)

The programme includes various schemes and components such as the following 

  • Block-level cluster - Introduced in 2015-16 providing financial assistance up to INR. 2.00 crore per BLC for various interventions such as skill up-gradation. Besides financial assistance up to Rs. 50.00 lakh also available for setting up of one dye house at the district level.
  • Handloom Marketing Assistance - To provide a marketing platform to the handloom agencies/ weavers to sell their products directly to the consumers. 
  • Weavers' MUDRA Scheme - Credit at a concessional interest rate of 6% is provided to the handloom weavers. Margin money assistance to a maximum of Rs. 10,000 per weaver and credit guarantee for a period of 3 years is also provided.
  • Education of handloom weavers and their childers - MoU signed with Indira Gandhi National Open University (IGNOU) and National Institute of Open Schooling (NIOS) to secure educational facilities for the weavers and their families.
  • India Handloom Brand - It was launched by the Hon'ble Prime Minister for the branding of high-quality handloom products.  Since its launch, 1232 registrations have been issued under 122 product categories and sale of Rs. 689.72 crore as reported on 31-03-2019
  • E-commerce - In order to promote e-marketing of handloom products, a policy framework was designed and under which any willing e-commerce platform with a good track record can participate in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for online marketing of handloom products. A total sale of Rs. 34.72 crore has been reported through the online portal as on 31-03-2019.
Yarn Supply Scheme

Yarn Supply Scheme is being implemented throughout the country to make available all types of yarn at Mill Gate Price. The scheme is being implemented through National Handloom Development Corporation.  Under the Scheme freight is reimbursed and depot operating charges at 2% is given to depot operating agencies.  A component of 10% price subsidy also exists on hank yarn, which is applicable on cotton, domestic silk and woollen yarn with quantity caps.

Financing

A special fund of INR. 2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD) to provide credit at affordable rates to boost the Food Processing sector. Loans are extended up to 95% of the eligible project cost for entities promoted by the State Governments while other categories of promoters are extended loans up to 75% of the project cost.

Trade Scenario

During 2018-19, India exported handicrafts worth US$ 3.80 billion and handlooms worth US$ 344 billion.

Indian handicrafts are exported across geographies, with the top destinations being the US, the UK, the UAE, Germany, France, Latin American Countries (LAC), Italy, Netherlands and Canada

Major Investors

Product Profiles

Art Metalware - Brass Metalware, Bidri work, Dhokra, Bell Metal, Bells & Chimes, Candle Holders, Candle Sconces, Fireplace, Flower Vases, Jewellery Boxes, Utensils etc.
Wooden Artware - Almirah Beds, Cabinets, Chairs, Home Temples, Mirror Frames, Side Boards, Sofa Sets, Stools, Tables etc.
Hand-Printed Textiles - Kalamkari, Tie & Dye, Block Printing, Bed Covers, Carpets, Coverlets, Curtains, Cushion Covers, Duvets, Kitchen Towels, Quilts, Rugs & Mats, Sofa Covers etc.
Embroidered & Crocheted Goods - Zardozi, Parsiwork, Kashmiri Crewel Embroidery Work, Phulkari Work, Kasuti, Chikankari, Crocheted Work, Kantha Embroidery, Mirror Work Embroidery etc.
Imitation Jewellery - Anklets, Armlets, Bangles, Bracelets, Brooches, Chokers, Cufflinks, Earrings, Necklaces, Pearls, Pendants, Rings, Toe Rings etc.
Others - Shawls as artwares, Zari goods, Terracotta goods, Leather Goods, Paintings, Toys & Dolls, Papier-Mache craft, Tables & Garden accessories, Antique Armoury etc.

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FAQ

FAQs

What are the government sponsored schemes in textile industry?

The Ministry of Textiles through the Textile Committee provides information on the various schemes available for the textile sector. The schemes are aimed at providing wholistic benefits and growth opportunities to this sector.

These schemes are:

  1. Power-loom sector.
  2. Technology upgradation.
  3. Cluster development programme/ integrated textile parks.
  4. Integrated Skill Development Scheme.
  5. Technical Textiles

For more information, click here

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What is Export Promotion & Quality Assurance under Ministry of Textile?

The Export Promotion & Quality Assurance Division carries out functions under various Sections of The Textiles Committee Act, such as conducting technical studies in the textile industry, Promotion of textile exports, Establishing, adopting and recognizing standard specifications for textiles and packing materials, Specifying the type of quality control or inspection needs to be applied to textiles, providing training on the techniques of quality control to be applied to textiles etc.

For more information, click here.

 

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Is there a list of importers and exporters of technical textiles available?

There are 369 technical textiles importers and 680 technical textiles exporters in India as per the latest available figures. The list of exporters and importers along with contact details, export segment & product exported is available in the website link. 

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What are the main objectives of the Market Intelligence in Textiles?

The main objectives of MIT are:

1)  Provide Real-time Database for the Policy, Industry and Trade (Country level, product level).
2)  Suggest remedial measures/ information on change in business environment in domestic segment.
3) Augmenting Market Information for export competitiveness and policy.  

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How can one apply for India Handloom Brand?

One can apply for the registration by submitting:

  1. a duly filled application form in duplicate in the prescribed format;
  2. applicable registration fees; and
  3. sample of your product(s) of 0.25 meter length in full width of the fabric.

For more information, click here

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