Export Assistance Schemes for Handloom Exporters

Financial Support for exporters of Handloom


The following information about schemes for exporters of Handloom products in India has been extracted from the web portal of Handloom Export Promotion Council of India.  The exporters may visit the said web portal and collect more information.


a) Market Access Initiative Scheme (MAI):

This scheme is operated by the Department of Commerce, Ministry of Commerce & Industry, Government of India. Under MAI scheme, financial assistance is provided on focus country and focus product basis to enhance export.


Entities eligible for assistance are:


Export Promotion Organizations.

Trade Promotion Organizations.

National Level Institutions.

Research Institutions/ Universities/ Laboratories.


Activities eligible for assistance are:


Marketing projects abroad.

Capacity Building.

Support for statutory compliances.


Project Development.




b) Market Development Assistance Scheme (MDA):

This scheme is operated by Department of Commerce, Ministry of Commerce & Industry, Government of India. Under MDA scheme, financial assistance is provided for:


Exporters for export promotion activities abroad.

Export Promotion Councils (EPCs) to undertake export promotion activities fortheir product(s) and commodities.

Approved organizations/trade bodies in undertaking exclusive nonrecurring

innovative activities connected with export promotion efforts for their members.

Focus export promotion programmes in specific regions abroad like Focus

(LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.

Residual essential activities connected with marketing promotion efforts abroad.

Assistance to individual exporters:

Exporting companies with an f.o.b. value of exports of upto Rs.30 crore in the preceding year will be eligible for MDA assistance for participation in BSMs/fairs/exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. This will be subject to the condition that the exporter has completed 12 months membership with concerned EPC and filing of returns with concerned EPC/organisation regularly. However, this condition would not apply in case of a new EPC for a period of 5 years from the date of its creation. No such ceiling is applicable for participation in Focus LAC region.


Assistance would be permissible on travel expenses by air, in economy excursion class fair and/or charges of the built up furnished stall. This would, however, be subject to anupper ceiling mentioned below in the table per tour.


For EPC led Trade Delegations/BSMs, the participating companies are eligible to avail a space grant of Rs.80,000/- and travel grant of to and fro air travel in economy excursion class upto a maximum of Rs.70,000/- for their participation in Focus Africa, Focus CIS and Focus ASEAN+2 programmes. At the same time, they are eligible for the travel grant upto a maximum of Rs.1,00,000/- towards their participation in Focus LAC programme. No travel grant is permissible for visit to General Areas.


However, for priority sectors such as Handicrafts, Handlooms, Carpets, Leather , Minor Forest produce and Agriculture including food items, 2 participations in General Areas would be admissible with the assistance of Rs. 2,00,000/- for each participation. The exporters availing of assistance under this provision would, however, be in addition to these participations, eligible for only any 2 Focus Area participations.  



To strengthen/consolidate existing handloom clusters for their sustainability: Interventions-focus on loom up-gradation, design inputs, credit, marketing plus other need based interventions.

To focus on formation of handloom weavers? groups as a visible production group in a selected handloom clusters.

To reduce drudgery of handloom weavers, improve productivity & quality of handloom products by providing technologically upgraded accessories.

To develop & strengthen the Handloom Institutions, including WSCs/IIHTs.

Market orientation by associating entrepreneurs, designers and professionals for marketing, designing and managing the production and providing marketing infrastructure support.

An inclusive approach to cover weavers both within and outside the co-operative fold.

Holistic and flexible interventions to provide need based inputs specific to each cluster/group etc

To provide a platform for marketing of handloom products, both in domestic and international markets and brand promotion.

Cultural Exchange by deputing weavers abroad.


Handloom Marketing Assistance:


The objective of the Handloom Marketing Assistance is to develop and promote the marketing channels in domestic as well as export market and bring about linkage between the two in a holistic and integrated manner. The handloom marketing assistance components has the following sub-components:


Domestic marketing promotion

Marketing infrastructure development

Market access initiative

Handloom export promotion

Council under the Handloom Export Promotion sub-component organizes various major activities like international exhibitions, reverse BSMs, export projects, publicity measures, etc. to promote export of Handloom products across the world.




3. Duty free import entitlement of specified trimmings and embellishments:


Under this scheme, a manufacturer of textile garment or a merchant exporter tied-up with supporting manufacturer of textile garments registered with HEPC can avail benefit of Duty free import of specified trimmings, embellishments etc @ 5% of FOB value of Handloom garments exported and realized during the preceding financial year to fulfillment of condition No.24 specified in the Customs Notification no. No.12/2012 dated March 17, 2012.


A manufacturer of handloom made ups registered with the Handloom Export Promotion Council can avail benefit of Duty free import of specified trimmings, embellishments etc @ 5% of FOB value of handloom madeups, exported and realized during the preceding financial year subject to fulfillment of condition No.28 specified in the Customs Notification no. No.12/2012 dated March 17, 2012.

4. Supply of yarn at mill gate price:


The objective of this component is to make available all types of yarn at Mill Gate Price and provide 10% Price Subsidy on cotton hank yarn, domestic silk and wool so as to facilitate regular supply of basic raw materials to the handloom sector and help utilize the full employment potential of the sector.


The benefit is available to eligible handloom weavers, Handloom producers/manufacturers exporting directly and registered with HEPC.


5. Drawback:


Drawback assistance is provided to exporters as a reimbursement of the incidence of central levies -excise, customs duty and service tax on the raw materials used for the production of the products that are exported.


6. Merchandise Exports from India Scheme (MEIS):


A new scheme merging 5 different schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) MEIS has been notified. Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable.


Exports of Handloom products bearing notified ITC HS codes are eligible for 5% of duty credit scrip to traditional markets (30 nos.), emerging & focus markets (139 nos.) and other markets (30 nos.). Exports of Handloom products through courier or foreign post office using e-commerce platform are eligible for benefit under MEIS.



Useful Information Links:

 Why separate Registration of GST in each state in India, for each business.
 Latest date to file GST registration in India
Procedures to obtain GST registration for non-resident taxable person
Is digital signature option available under registration of GST in India?
 Advantages of GST registration in India
Who has to obtain GST registration in India?     
Does GST registration number of my firm change time to time in India?
 Is GST registration required for a public sector undertaking?
 Is amendment of GST registration allowed in India?
 Cancellation of GST registration in India
Centralized GST registration of services permitted in India?
 Retired from business ownership. Fresh GST registration in India?
 GST Registration for Job workers in India
GST registration mechanism in India
Pre-registration of credit card necessary for GST payment in India
Is GST Registration required for a Job worker in India?
 We have applied for GST registration, but not obtained registration certificate. Can we claim ITC in India?
 Date of GST registration and date of eligibility to claim ITC

How does a Running bond work?
How does Bill of Lading work in DP payment terms?
How does Bill of Lading work in Sight LC
Transferability of Bill of Lading
Transhipment - A redefinition        
Triangular shipment
Types of Insurance Documents
How does CENVAT Credit work? 
Import General Manifest (IGM)
Importance of Bill of Lading 
Is Airway bill a documents of title?
Is Customs House Agents (CHA ) required to be appointed mandatory?
Is DP terms of payment safe in export business?
Is Letter of Credit LC safe for an Importer?
Is ON BOARD CERTIFICATE required for LC negotiation
What is VACIS exam in US import customs clearance
When can an exporter release bill of lading from shipping company?
When does exporter get EP copy of shipping bill after customs clearance
How does CFR term of delivery work in Export Import business
How does comprehensive policy of ECGC work for exporters?
The role of CBEC - Central Board of Excise and Customs in India.
The role of Export Inspection Agency in Pre-shipment Inspection & Quality Control

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers