Government of India has launched various subsidy schemes for powerloom sector such as (i) Technology Up-gradation Fund Scheme (TUFS) and In-situ Up-gradation Scheme for Plain Powerlooms for up-gradation of technology; (ii) Group Workshed Scheme for giving assistance for constructing workshed for powerloom sector; (iii) Integrated Scheme for Powerloom Sector Development (ISPSD) extending assistance for marketing support in the form of Buyer Seller Meets, Yarn Bank, Common Facility Centres, organizing Seminars/ Workshop to create awareness / educate powerloom workers, etc. As regards Handloom Sector, Government of India is providing subsidy under Yarn Supply scheme throughout the country to make available all types of yarn at Mill Gate Price to the eligible handloom weavers. Under the scheme the freight is reimbursed and depot operating charges @2% is given to depot operating agencies. Further, 10% price subsidy is provided on hank yarn to handloom weavers.
The details of the contribution of the Powerloom sector and Handloom sector out of total cloth production of textile sector in the country during the last three years & current period is given below:-
(Million Square meters)
| YEAR | POWERLOOM | HANDLOOM | TOTAL |
| 2013-14 | 36,790 (57.93%) |
7,104
(11.19%) |
63,500 |
| 2014-15 | 37,749
(59.44%) |
7,203 (11.34%) |
63,500 |
| 2015-16 | 36,984
(56.46%) |
7,638
(11.66%) |
65,505 |
| 2016-17
(Up to Oct., 2016) |
21,335
(56.53%) |
4,724
(12.51%) |
37,736 |