Executive Summary:
The Ministry of Textiles addressed challenges faced by the handloom industry in Kannur, Kerala, on July 22, 2025. Central sector schemes like the National Handloom Development Programme (NHDP) and Raw Material Supply Scheme (RMSS) are being implemented to support handloom weavers nationwide, including those in Kannur. The ministry also facilitates digital marketing through Indiahandmade.com and skill development through the SAMARTH scheme.
Key Points / Main Content:
* **Support Schemes and Financial Assistance:**
* The NHDP and RMSS provide financial assistance to eligible handloom agencies and weavers.
* Assistance covers raw materials, loom upgrades, solar lighting, workshed construction, skilling, product design, technical infrastructure, marketing, concessional loans (MUDRA), social security, and payments to awardees.
* **GST and Income Tax:**
* GST rates on handmade textile products are generally 5%, as per the GST Council's recommendations.
* No demands for income tax reduction on handloom cooperative societies have been received.
* **Raw Material Supply Scheme (RMSS):**
* Yarn is supplied to handloom weavers under price and transport subsidy components.
* The National Handloom Development Corporation Ltd. (NHDC) acts as the Implementing Agency (IA).
* **Skill Development:**
* The SAMARTH scheme provides skilling programs across India, including Kerala, without specific state fund allocations.
* As of July 17, 2025, 1,724 beneficiaries in Kerala, including Kannur district, have been trained and passed under the SAMARTH scheme.
* **Digital Marketing:**
* Indiahandmade.com was launched on April 22, 2023, to facilitate direct sales for weavers and artisans.
Impact Analysis:
* Handloom Weavers (including those in Kannur, Kerala):
* Impact: Benefit from financial assistance, subsidized raw materials, skill development, and digital marketing opportunities.
* Action Required: Utilize available schemes (NHDP, RMSS, SAMARTH) and platforms (Indiahandmade.com) to improve production, skills, and sales.
* Handloom Cooperative Societies:
* Impact: Potential to enhance financial stability and competitiveness through government schemes, although no specific income tax relief is currently planned.
* Action Required: Explore and apply for relevant financial assistance and support under NHDP and RMSS.
* National Handloom Development Corporation Ltd. (NHDC):
* Impact: Responsible for implementing the RMSS, specifically managing yarn supply with price and transport subsidies.
* Action Required: Continue to effectively manage and distribute yarn subsidies to eligible weavers.
* State Government of Kerala:
* Impact: Oversees the Indian Institute of Handloom Technology (IIHT), Kannur, while benefiting from the SAMARTH scheme for skill development.
* Action Required: Support and coordinate with the Ministry of Textiles on skill development initiatives under the SAMARTH scheme.
Key Entities Referenced
Kannur, Kerala: A district in the state of Kerala, India, known for its handloom industry facing several challenges.
GST: Goods and Services Tax, a consumption tax levied on most goods and services sold for domestic consumption.
Raw Material Supply Scheme (RMSS): A central sector scheme implemented by the Ministry of Textiles to address yarn cost increases and supply chain issues for handloom weavers.
National Handloom Development Programme (NHDP): A central sector scheme implemented by the Ministry of Textiles to promote handlooms and for the welfare of handloom weavers.
Indian Institute of Handloom Technology (IIHT) Kannur: An institute located in Kannur, Kerala, providing skill development in the handloom sector.
Ministry of Textiles: The Indian government ministry responsible for the formulation of policy, planning, development, and regulation of the textiles industry.
SAMARTH Scheme: A capacity building scheme implemented by the Ministry of Textiles to provide skilling programs in the textile sector across India.
National Handloom Development Corporation Ltd. (NHDC): The Implementing Agency (IA) for the Ministry of Textiles, supplying yarn to handloom weavers under price and transport subsidy components.
LOK SABHA
UNSTARRED QUESTION NO. 330
TO BE ANSWERED ON 22.07.2025
CHALLENGES FACED BY HANDLOOM INDUSTRY
330. SHRI K SUDHAKARAN:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the Government is aware of the severe challenges faced by the handloom industry in Kannur,
Kerala, including GST and income tax burdens, rising yarn costs, competition from powerlooms,
declining weaver participation, inadequate marketing and financial crises in cooperative societies;
(b) the steps taken to review and reduce GST rates (5–35%) and income tax (30%) on handloom
cooperative societies to enhance their financial stability and competitiveness;
(c) the measures implemented under the Raw Material Supply Scheme (RMSS) and National Handloom
Development Programme (NHDP) to address yarn cost increases and supply chain issues for Kannur’s
weavers; and
(d) the details of central funding allocated for skill development at the Indian Institute of Handloom
Technology (IIHT) Kannur, digital marketing initiatives and revival of cooperative societies to sustain
Kannur’s handloom industry and its export potential?
उत्तर
ANSWER
वस्त्र मंत्री (श्री गिररराज स हं )
MINISTER OF TEXTILES
(SHRI GIRIRAJ SINGH)
(a) to (c): Ministry of Textiles is implementing central sector schemes such as (i) National
Handloom Development Programme (NHDP) and (ii) Raw Material Supply Scheme (RMSS) to promote
handlooms and for welfare of handloom weavers across the country including Kannur, Kerala. Under
these schemes, financial assistance is provided to eligible handloom agencies/weavers for raw materials,
procurement of upgraded looms & accessories, solar lighting units, construction of workshed, skilling,
product & design development, technical and common infrastructure, marketing, concessional loans
under weavers’ MUDRA scheme, social security, payment to awardee weavers in indigent circumstances
etc.
GST rates are prescribed on the recommendations of GST Council, which is a constitutional body
comprising of representatives from States/UTs & Centre. Handmade textile products mostly attract GST
rate of 5%. Regarding income tax burden/reduction in income tax on handloom cooperative societies is
concerned, no such demand has been received in this Ministry.
Further, to address the issues of yarn cost increase and supply chain under RMSS, Ministry of Textiles is
supplying yarn to handlooms weavers under price subsidy and transport subsidy components through
National Handloom Development Corporation Ltd., (NHDC) as Implementing Agency (IA).(d): IIHT, Kannur is an institution under the administrative control of State Government of Kerala.
However, Ministry of Textiles is implementing SAMARTH (Scheme for capacity building in textile
sector) with the objective to provide skilling programme on PAN India basis, including Kerala, without
any State-wise fund allocation. Under the SAMARTH scheme, as on 17.07.2025, a total of
1,724 beneficiaries have been trained (passed) in Kerala state including Kannur district.
For digital marketing of handloom products, an e-commerce portal (Indiahandmade.com) was launched
on 22nd April 2023 to facilitate weavers and artisans across India to sell their products, without involving
any intermediaries.
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