Union Budget 2025: Empowering India’s Handloom Industry with New Schemes & Funding

The Union Budget 2025, presented on February 1, 2025, has introduced several initiatives aimed at revitalizing India’s handloom industry. These measures are designed to support weavers, artisans, NGOs, and handloom sellers, ensuring sustainable growth and preserving traditional crafts.

Key Initiatives and Allocations in the 2025 Budget:

  1. Cotton Mission: A five-year mission with an allocation of ₹600 crore has been launched to enhance cotton productivity, especially focusing on extra-long staple (ELS) varieties. This initiative aims to provide scientific and technological support to farmers, ensuring a steady supply of high-quality raw materials for the handloom sector.
  2. Amended Technology Upgradation Fund Scheme (ATUFS): The budget has increased the allocation for ATUFS to ₹635 crore, up from ₹390 crore in the previous fiscal year. This scheme facilitates the modernization of the textile industry, enabling weavers and artisans to adopt advanced technologies, thereby improving productivity and product quality.
  3. National Handloom Development Programme (NHDP): With an allocation of ₹200 crore, the NHDP focuses on the integrated development of the handloom sector. It provides assistance in areas such as raw material supply, design inputs, technology upgrades, and marketing support.
  4. National Handicraft Development Programme: Allocated ₹260 crore, this program aims to promote the handicrafts sector by providing infrastructure support, design and technology interventions, and marketing assistance to artisans.
  5. Research and Capacity Building: A substantial allocation of ₹1,948 crore has been made for research initiatives and capacity building in the textile sector. This includes setting up centers of excellence and providing training programs to enhance the skills of weavers and artisans.

Existing Schemes Benefiting Weavers and Artisans:

  • Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS): This scheme offers life, accidental, and disability insurance coverage to handloom weavers/workers under components like Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
  • Weaver MUDRA Scheme: Provides credit at a concessional interest rate of 6% to handloom weavers. It also offers margin money assistance up to ₹10,000 and a credit guarantee for three years.
  • Yarn Supply Scheme (YSS): Implemented to make all types of yarn available at Mill Gate Price, this scheme reimburses freight costs and offers a 10% price subsidy on hank yarn for cotton, domestic silk, wool, and linen yarn.

How to Avail These Benefits:

  • Individual Weavers and Artisans: Can approach their respective State Handloom Departments or Weavers’ Service Centers to enroll in schemes like HWCWS and the Weaver MUDRA Scheme. They should provide necessary documentation, including proof of identity, weaver ID cards, and bank details.
  • NGOs and Handloom Sellers: Organizations aiming to support weavers can collaborate with the Ministry of Textiles to implement development programs. They can apply for grants under schemes like NHDP by submitting detailed project reports outlining their plans for cluster development, skill training, and marketing initiatives.

Contact Points for Assistance:

  • Ministry of Textiles: The primary government body overseeing the implementation of these schemes. NGOs and organizations can reach out for collaborations and funding opportunities.
  • National Handloom Development Corporation (NHDC): Responsible for the Yarn Supply Scheme, NHDC facilitates the availability of yarn to weavers at subsidized rates.
  • Weavers’ Service Centers (WSCs): Located across various states, WSCs provide technical assistance, design support, and training to weavers. They also serve as nodal points for disseminating information about government schemes.

Conclusion:

The Union Budget 2025 underscores the government’s commitment to strengthening the handloom and handicrafts sectors. By allocating substantial funds and introducing targeted schemes, the budget aims to empower weavers, artisans, and associated stakeholders, ensuring the preservation and growth of India’s rich textile heritage.

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