**Executive Summary**
The Ministry of Textiles has launched a country-market diversification strategy to expand Indian textile exports through targeted global outreach and institutional support. The initiative provides financial and structural assistance to artisans and weavers under the National Handicrafts Development Programme (NHDP) and the National Handloom Development Programme. Key timelines include a temporary cotton import duty exemption valid until December 31, 2025, and the ongoing utilization of 16 Free Trade Agreements to boost international market access.
**Key Points / Main Content**
**Export Diversification and Strategic Outreach**
* **Market Identification:** Focuses on high-potential global destinations to reduce market concentration risks and build a resilient export footprint.
* **Institutional Coordination:** Assignment of Nodal Officers from the Ministry and the National Institute of Fashion Technology (NIFT) to provide design, product adaptation, and trade facilitation support.
* **Diplomatic Engagement:** Active collaboration with Indian Embassies, Missions, and Export Promotion Councils (EPCs) to reinforce trade efforts abroad.
**Market Access and Trade Agreements**
* **Financial Support for Events:** The Market Access Support (MAS) component funds participation in international trade fairs, exhibitions, and Buyer-Seller Meets (BSMs).
* **Trade Frameworks:** Utilization of 16 signed Free Trade Agreements (FTAs), including deals with Australia, UAE, Japan, and the UK, alongside recently concluded negotiations with the European Union.
**Support for Handicrafts and Handlooms**
* **NHDP & CHCDS Schemes:** Focus on the overall development of the handicraft sector through the Marketing Support and Services (MSS) component.
* **Artisan Assistance:** Provision of financial aid for space rent, infrastructure, publicity, travel/freight charges, and boarding/lodging for international events.
* **Handloom Development:** Financial aid for upgraded looms, solar lighting units, construction of worksheds, and branding through the India Handloom Brand (IHB) and GI tags.
* **Credit and Social Security:** Provision of concessional loans under the weavers’ MUDRA scheme and enhanced social security measures.
**Raw Material Management**
* **Import Duty Exemptions:** Temporary exemption of import duty on cotton (tariff heading 5201) from August 19, 2025, to December 31, 2025.
* **Subsidies:** Implementation of a 15% price subsidy on Cotton Hank yarn and transport subsidies for delivering yarn to the doorstep of beneficiaries under the Raw Material Supply Scheme.
**Impact Analysis**
**Artisans and Handicraft Exporters**
* **Impact:** They gain direct access to global markets and international buyer linkages, supported by government-funded travel and exhibition costs.
* **Action Required:** Eligible awardee artisans must nominate themselves for international marketing events and utilize MSS component funds for global branding.
**Handloom Weavers and Agencies**
* **Impact:** Stakeholders benefit from modernized equipment, improved infrastructure (worksheds/solar power), and enhanced marketability through e-commerce and official branding.
* **Action Required:** Weavers should apply for financial assistance for loom upgrades and register for the India Handloom Brand (IHB) or GI tags to improve product value.
**Domestic Textile Industry**
* **Impact:** The industry benefits from reduced input costs and stabilized raw material availability due to the temporary removal of cotton import duties and ongoing yarn subsidies.
* **Action Required:** Industry players must manage procurement schedules to benefit from the duty exemption ending on December 31, 2025, and utilize the Raw Material Supply Scheme for subsidized yarn.
Key Entities Referenced
Ministry of Textiles: The primary government body responsible for formulating textile export strategies and administering development schemes for artisans and weavers.
National Handicrafts Development Programme (NHDP): A key scheme providing international marketing support, branding, and financial assistance to promote the Indian handicrafts sector globally.
National Handloom Development Programme: A scheme providing financial assistance for upgraded looms, infrastructure, and marketing to support handloom weavers across the country.
Office of the Development Commissioner (Handicrafts): The specialized implementation agency under the Ministry of Textiles that manages development and promotion schemes for the handicrafts sector.
Raw Material Supply Scheme: A scheme providing transport and price subsidies on yarn to ensure the availability of quality raw materials at reduced costs for weavers.
Ministry of Textiles
ASSISTANCE TO ARTISANS AND WEAVERS
UNDER NHDP
Posted On: 27 MAR 2026 2:55PM by PIB Delhi
The Ministry of Textiles has formulated a comprehensive and focused country-market diversification
strategy aimed at identifying high-potential global destinations for Indian textile exports. The strategy
envisages structured and targeted outreach in these identified markets through coordinated efforts of
Export Promotion Councils (EPCs), industry delegations, and Indian Missions abroad, with the objective
of reducing market concentration risks and establishing a more resilient, diversified, and sustainable
global footprint for the Indian textile industry.
Under this initiative, Nodal Officers from the Ministry have been assigned for the target countries, which
have been grouped into different geographic blocs. In addition, Nodal Officers from the National
Institute of Fashion Technology (NIFT) have also been associated with the initiative to provide design,
product adaptation, and market-oriented support. The Ministry is actively coordinating with Indian
Embassies/Missions in the focus countries to reinforce diplomatic engagement and trade facilitation
efforts in support of textile exports.
As part of this strategy, the Ministry has, during the current year, deputed delegations to several
identified countries for the promotion of Indian textile products in coordination with Export Promotion
Councils (EPCs) and Indian Missions abroad. Further, structured support is provided under the Market
Access Support (MAS) component of the Export Promotion Mission (EPM) for activities abroad,
including in the identified countries, such as Buyer-Seller Meets (BSMs), trade fairs, exhibitions, and
other related market access initiatives, with a view to strengthening India’s access to international
markets.
In addition, India has signed 16 Free Trade Agreements (FTAs), and several of the identified focus
countries are already covered under these agreements. These include Australia, the UAE, Japan, the
Republic of Korea, Sri Lanka, Singapore, Thailand, Malaysia, Switzerland and the United Kingdom.
Further, several countries covered under the focused initiative are members of the European Union, with
which India has recently concluded FTA negotiations.
The Office of the Development Commissioner (Handicrafts) under the aegis of Ministry of Textiles
implements two schemes namely National Handicrafts Development Programme (NHDP) and
Comprehensive Handicrafts Cluster Development Scheme (CHCDS) for overall development and
promotion of handicrafts sector across the country. International Marketing Events are organized in India
and abroad under Marketing Support and Services (MSS) component of the NHDP scheme to promote
export of handicraft and strengthen global branding. Support is provided to eligible organizations for
organizing and participating in international fairs and conducting International Craft Exposure
Programme, Buyer seller Meet & Reverse Buyer Seller Meet, Fairs/Exhibitions/Events on Virtual
Platform, Road Show and Implementing overseas awareness campaigns to promote Indian Handicrafts.In addition, awardee artisans and exporters of handicraft are nominated to participate in these
international marketing events, enabling them to directly access global markets, showcase their
craftsmanship, and build international buyer linkages. The financial support under the MSS component
of the NHDP scheme, provides for space rent, infrastructure facilities, publicity of events, TA/DA and
freight charges for participating artisans in events organized in India. Boarding/lodging charges is also
provided to the artisans nominated for participation in international marketing events.
The Ministry of Textiles is administering National Handloom Development Programme to provide
specific support to handloom weavers across the country. Under the scheme, financial assistance is
provided to eligible handloom agencies/workers for procurement of upgraded looms & accessories, solar
lighting units, construction of workshed, product diversification & design innovation, technical and
common infrastructure, publicity and brand development through India Handloom Brand (IHB),
Handloom Mark (HLM) and GI tag, e-commerce facilities, marketing of handloom products in
domestic/overseas markets, concessional loans under weavers’ MUDRA scheme and social security etc
During the current cotton season 2025-26, to ensure adequate availability of cotton to the domestic
textile industry, the Government of India had exempted the import duty on cotton under tariff heading
5201 from 19.08.2025 to 31.12.2025 vide Notification No. 35/2025-Customs dated 18.08.2025 and
Notification No. 36/2025-Customs dated 28.08.2025 issued by the Department of Revenue, Ministry of
Finance to ensure sufficient availability of quality raw material. The Import duty (including 5% Customs
Duty, 5% AIDC, and 10% Cess) is again applicable after 31.12.2025. Further, to ensure adequate supply
& reduced input costs, the Ministry of Textiles provides transport subsidy for transportation of yarn to
the doorstep of the beneficiaries and 15% Price Subsidy on Cotton Hank yarn etc. under the Raw
Material supply Scheme.
This information was provided by THE MINISTER FOR TEXTILES SHRI GIRIRAJ SINGH in a written
reply to a question in Rajya Sabha on 20th March 2026.
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MAM/VN
(Rajya Sabha USQ 3356)
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