Pashupalan (GBCDC) 2026
This scheme aims to boost the marketing of handloom products, making them more visible and ensuring weavers Read More... get fair pay. It offers a 'Marketing Incentive' to eligible handloom agencies to create better sales environments. Read less
Details
The Government of India, through the Ministry of Textiles, is committed to supporting India's rich handloom sector. The 'Marketing Incentive' scheme, a part of the National Handloom Development Programme, is designed to help our weavers reach wider markets and earn more for their craft.
What Is This Scheme?
The Marketing Incentive scheme works under the Handloom Marketing Assistance component. Its main goal is to create stronger marketing avenues, both within India and for exports. This helps handloom products get the attention they deserve and ensures weavers receive fair compensation for their hard work. It provides financial incentives calculated on past sales to help agencies improve their marketing efforts.
Who Can Benefit From This Scheme?
This scheme is for various handloom agencies. This includes state-level organizations like Handloom Corporations and Apex Cooperative Societies, as well as national-level bodies. Primary Handloom Weavers Cooperative Societies, Producer Companies, Self-Help Groups, Joint Liability Groups, Federations, and other eligible handloom entities can also apply. The key is that these organizations must have a history of selling handloom products directly to consumers.
Why This Scheme Is Important
The handloom sector is a vital part of India's economy and cultural heritage. This scheme plays a crucial role by providing financial support that can be used for activities aimed at attracting customers and increasing overall sales. It empowers handloom agencies to improve price competitiveness, develop better designs, and invest in necessary infrastructure, ultimately benefiting the weavers at the grassroots level.
Objective
Benefits
Sources and references
Eligibility Criteria
To be eligible for this scheme, you must meet the following criteria:
- You should be a recognized handloom agency. This includes State Level Organizations like Handloom Corporations, Apex Cooperative Societies, National Level Handloom Organizations, Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations, and other approved handloom entities.
- Your sales transactions must represent the final sale of products to the end consumer.
- Your handloom products must be marked with the official 'Handloom Mark' or 'India Handloom Brand'.
- You need to have an average sales turnover of handloom products for the last 3 years, which will be used to calculate your incentive amount.
How To Apply
The application process generally involves the following steps:
- Prepare Your Documents: Gather all the necessary documents, including GST-compliant sales bills/invoices for handloom products and yarn purchase bills, and details of your average sales turnover for the last 3 years.
- Submit to State Government: Handloom agencies typically need to submit their claims, along with supporting documents and recommendations from the State Level Project Committee, to their respective State Government. This includes specific certificates as per prescribed proformas (like Annexure - B9 and Annexure - B10).
- State Government Recommendation: The State Government will process your claim and, if eligible, provide its recommendation and sanction order for releasing the state's share. A nodal agency might be identified for fund aggregation and release.
- National Level Applications: National Level Handloom Organizations/Societies can submit their applications directly to the Office of Development Commissioner (Handlooms), Ministry of Textiles, Government of India, without requiring state government recommendations.
- Verification and Disbursement: Once approved, the funds will be disbursed through the Direct Benefit Transfer (DBT) mechanism.
Official Contact: For detailed guidelines and application proformas, please refer to the official documents available on the Ministry of Textiles website. Applications are accepted through prescribed proformas and require State Government recommendations (except for National Level Organizations).
Documents Required
To apply for the Marketing Incentive scheme, you will need to provide various documents:
For Application Stage:
- Sales Bills/Invoices for Handloom Products (must be Goods and Services Tax compliant).
- Yarn Purchase Bills (must be Goods and Services Tax compliant).
- Details of Average Sales Turnover of Handloom Products for the Last 3 Years.
- Proof of Usage of Handloom Mark or India Handloom Brand.
- Evidence showing final transaction of product sale to the consumer.
For State Government Processing:
- Certificate as per Prescribed Proforma (Annexure - B9) for each claim.
- A Consolidated Statement of all submitted claims.
- Recommendations from the State Level Project Committee.
- Sanction Order for the release of the State Government's share.
- Documentary proof that the amount has been transferred to the beneficiaries.
- Certificate as per Prescribed Proforma (Annexure - B10).
- Identification of a suitable Nodal Agency for managing fund aggregation and release.
At Verification Stage:
- Utilization Certificate issued by the Nodal Agency.
- Certificate confirming Direct Benefit Transfer release within 7 days.
- Details of beneficiaries, including State and Government of India shares, uploaded in the public domain.
Important Note: All sales and yarn purchase bills must be Goods and Services Tax (GST) compliant to qualify for the Marketing Incentive.
Official Sources
For the complete list of guidelines and proformas, please refer to:
FAQ’s
How is the marketing incentive amount calculated for eligible handloom organizations?
The incentive is calculated as 10% of the average sales of handloom products that the organization has achieved over the past three years.
What proof of sales do I need to provide to claim the marketing incentive?
You need to submit Goods and Services Tax (GST) compliant sales bills/invoices for your handloom products, along with details of your average sales turnover for the last three years.
Are there different maximum limits for the incentive based on the type of organization?
Yes, State Level Organizations can receive a maximum of ₹1,00,00,000/- from the Central Government share, while Primary Level Organizations have a maximum cap of ₹15,00,000/- from the Central Government share.
What is the timeline for releasing the incentive funds to the weavers and agencies?
The designated Nodal Agency must release the incentive amount to eligible handloom agencies and their member weavers within 7 days of receiving the funds.
Can I receive this marketing incentive if I am already getting a similar rebate from another Central Government scheme?
No, you cannot receive this marketing incentive if you are already receiving a similar incentive or rebate under any other Central Government scheme. The State Government will prioritize claims from agencies that have not received duplicate benefits.
What is the maximum period for which an organization can receive marketing incentive assistance?
Marketing incentive assistance can be provided for a maximum of 3 years during the overall scheme period of 5 years.
What should be the primary use of the marketing incentive funds received by the handloom agencies?
The funds should be used for activities that attract consumers and enhance the overall sales of handloom goods. This can include improving price competitiveness, investing in design development, and upgrading infrastructure.
Who is responsible for sharing the financial assistance for most handloom organizations?
In most general cases, the financial assistance is shared equally between the Government of India and the respective State Government (50:50).
How are the marketing incentive benefits shared between the organization and the weavers?
The 10% benefits of the marketing incentive are shared equally between the organizations and their member weavers. This distribution happens through the Direct Benefit Transfer (DBT) mechanism.
Do my products need to have any specific marking to be eligible?
Yes, your handloom products must use either the 'Handloom Mark' or the 'India Handloom Brand' to be considered eligible for this incentive.
Which types of handloom entities are eligible to apply for this scheme?
Eligibility includes State level organizations like Handloom Corporations and Apex Cooperative Societies, National Level Handloom Organizations, Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations, and other approved handloom entities.
Can National Level Handloom Organizations apply directly for this assistance?
Yes, National Level Handloom Organizations and Societies can submit their applications directly to the Office of Development Commissioner (Handlooms) without requiring recommendations from the State Government.
What if my sales are between different handloom agencies? Are they included in the incentive calculation?
No, sales between handloom agencies, sales to government departments, barter system sales, and sales from primary societies to apex societies or corporations are excluded from the calculation of your eligible marketing incentive.
What is the GST compliance requirement for all related bills?
All sales bills and invoices for handloom products, as well as yarn purchase bills, must be Goods and Services Tax (GST) compliant to be accepted for the Marketing Incentive claim.
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