The Handloom, Handicrafts and Powerloom Sector pre-dominantly come under the unorganized /small scale sectors. In order to support, develop and modernize these sectors in the country, Government has launched several schemes for strengthening these sectors.
In the Handloom Sector, National Handloom Development Programme is being implemented for development of the sector and welfare of handlooms weavers is being promoted through Handloom Weavers Comprehensive Scheme, Health Insurance Scheme, Mahatma Gandhi Bunkar Bima Yojana and Yarn Supply Scheme etc. These schemes ensure regular supply of basic raw materials to the handloom sector and help utilize the employment potential of the sector.
Under the National Handicrafts Development programme (NHDP), raw material depots are setup to make easy availability of quality and graded raw material to artisans/ entrepreneurs/ units at a reasonable rates. Other schemes such as Ambedkar Hastshilp Vikas Yojna, Design & Technology Upgradation, Marketing and Support Services, Research and Development, Human Resource Development, Welfare Schemes and assistance for creation of Capital Infrastructure are implemented for overall development of Handicraft Sector and welfare of Handicrafts Artisans.
In order to overcome the problems faced by the powerloom weavers and for the development of decentralised Powerloom Sector, Government is implementing a number of schemes such as Technology Upgradation Fund Scheme for upgradation of technology & In-situ upgradation scheme for upgradation of plain powerlooms, Group workshed scheme for giving assistance for constructing workshed for powerloom sector, Group Insurance Scheme, Integrated Scheme for Powerloom Sector Development (ISPSD) for extending assistance for marketing support in the form of Buyer Seller Meet, Yarn Bank, setting up of facility for Common Facility Centre organizing Seminar/ Workshop regarding Government support for Schemes. A corpus fund for yarn Bank is provided under the Integrated Scheme for Powerloom Sector Development, to provide interest free corpus to set up Yarn Banks.