The Ministry of Textiles is administering two key schemes for the overall development of the handloom sector and welfare of handloom workers across India, including Tamil Nadu: the National Handloom Development Programme (NHDP) and the Raw Material Supply Scheme (RMSS). These schemes provide financial assistance for raw materials, procurement of upgraded looms and accessories, solar lighting units, workshed construction, skilling, product diversification, design innovation, technical infrastructure, brand development through India Handloom Brand, Handloom Mark and GI tag, e-commerce facilities, domestic and overseas marketing, concessional loans under weavers' MUDRA scheme, and social security coverage.
Under the small cluster development programme component of NHDP, an amount of ₹78.31 lakh was released during 2023-24 and 2024-25, benefiting 343 handloom weavers in Tirunelveli district of Tamil Nadu. The Ministry does not allocate budget state-wise but releases funds to eligible handloom agencies based on viable proposals received as per scheme guidelines.
National budgetary allocations and expenditures for both schemes over the past four years show consistent funding: For NHDP, Budget Estimates (BE) and Expenditure (Exp.) were ₹190.00 crore BE and ₹186.36 crore Exp. in 2023-24; ₹195.84 crore BE and ₹195.51 crore Exp. in 2024-25; ₹234.84 crore BE and ₹234.32 crore Exp. in 2025-26; and ₹205.00 crore BE with ₹88.62 crore Exp. as of 30.06.2026 for 2026-27. For RMSS, figures were ₹160.00 crore BE and ₹159.72 crore Exp. in 2023-24; ₹172.17 crore BE and ₹172.16 crore Exp. in 2024-25; ₹219.00 crore BE and ₹218.96 crore Exp. in 2025-26; and ₹200.00 crore BE with ₹63.20 crore Exp. as of 30.06.2026 for 2026-27.
Specific support provided to Tamil Nadu's handloom sector during the last three years and current year includes: 20 Small Handloom Clusters receiving financial assistance of ₹21.73 crore benefiting 3,356 handloom weavers; 5,466 weavers provided improved looms and accessories under Hathkargha Samvardhan Sahayata; 1,999 handloom workers receiving skill upgradation training; 14 marketing events organized to promote handloom product sales; formation of 12 Handloom Producer companies to enhance productivity and marketing capabilities; 13,790 beneficiaries provided loans under Weavers' MUDRA Scheme; 135,000 beneficiaries enrolled under Pradhan Mantri Jeevan Jyoti BimaYojana and Pradhan Mantri Suraksha BimaYojana; and 334.13 lakh kg of yarn supplied under Transport Subsidy & Price Subsidy.
This information was provided by the Minister of State for Textiles Shri Pabitra Margherita in a written reply to a question in Lok Sabha.