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Schemes of Handicraft
The Handicrafts Sector is able to provide substantial direct employment to the artisans and others engaged in the trade and also employment to many input industries in recognition of the above facts , the Government of India set-up an autonomous All India Handicrafts Board in 1952.The promotion of handicrafts industries is the primary responsibilities of State Governments. However , the Office of the Development Commissioner [Handicrafts] has been implementing various departmental schemes at the central level to supplement state’s activities in the handicrafts sector besides the new thrust areas.The Office of the Development Commissioner [Handicrafts] functions under Ministry of Textiles for promotion and exports of handicrafts. The office is headed by Development Commissioner [Handicrafts]. It advices the Government of India on matters relating to the Development and Exports of Handicrafts and assists the State Government in Planning and Executing Development Schemes for handicrafts.

The Office of Development Commissioner (Handicrafts) is responsible for formulation and implementation of several schemes for the development of handicrafts at the Central level. This office also provides necessary guidance to the State Government for formulation and implementation of their promotional programmes. A necessity, therefore, arises to have a regular system of feedback of economic, social, aesthetic and promotional aspects of various crafts and artisans in this sector.

Schemes of the Office of Development Commissioner (Handicrafts),Ministry Of Textiles, Government Of India

Babasahib Ambedkar Hastshilp Vikas Yojana
This scheme aims at promiting Indian handicrafts by developing artisans clusters into professionally managed and self-reliant community enterprises on the principles of effective member participation and mutual cooperation. This thurst of the scheme is on a projectised need based integrated approach for sustainable handicrafts development through participation of craftspersons leading to their empowerment.

  • Social interventions (Diagnostic survey and formulation of project plan, Mobilzation of artisans)
  • Technological interventions (Training of trainers, skill upgradation, Development and supply/dissemination of modern improved tools, equipments etc., Design and technological upgradation, Revival of languishing crafts, CFC etc.)
  • Marketing enterventions (Marketing events, Marketing infrastructure, Publicity and services, International marketing).
  • Financial interventions (Margin money)
Financial assistance under this scheme can be given to/through the Reputed NGOs/Cooperatives/Apex cooperative societies/Trusts/COHANDS/EPCH/CEPC/MHSC/IICT/
NCDPD/NIFT/NID/University Deptt., DRDA/NISSIET, EDIs, Central/State Handloom and Handicrafts Development Corporations and other related Govt. Corporations/Agencies, Federation of NGOS/SHGs Consortium etc. registered under proper statute, for sustainable development of identified craft clusters.

Bima Yojana for Handicrafts Artisans
“Bima Yojana” for Handicraft Artisans is in operation since 2003-04 with the objective of providing life insurance Protection to Handicraft Artisans which has two components namely “Janshree Bima Yojana” & “Add-on Group Insurance Scheme” for  male as well as female age group of 18 -60 years.The scheme is being implemented through Life Insurance Corporation of India.

Under the Janshree Bima Yojana the total premium is Rs. 200/- per beneficiary per annum. This premium is shared by the Ministry (Rs. 60/-), by the LIC (Rs. 100/-) and the remaining Rs. 40/- contributed by the handicraft artisans . In addition to covering risk for Death(Rs.20,000/- Natural death, Rs. 50,000/-Accidental death) & Disability(Rs. 25,000/-), the coverage includes Educational Assistance @ Rs. 300/- per quarter per child for two children of the handicraft artisans for school education of standard IX to XII.

Under The “Add- on Group Insurance Scheme”, the beneficiary artisans and the Government of India equally share the total premium of Rs. 180/- per annum. This component enhanced coverage for Death (Rs. 50,000/- for accidental death) & Disability( Partial- Rs. 25,000/- Permanent Rs. 50,000/-).

Under the scheme up to 31 st March, 2006, 1,96,507 artisans have been covered against the target of 2 lakhs artisans, 324 claims have been settled involving an amount of Rs. 64,80,000/-. Besides an amount of Rs. 18,31,200 has been disbursed by the LIC under the Shiksha Sehyog Yojana.

All crafts persons, whether male or female, between the age group of 18-60 years will be eligible to be covered under the BIMA YOJANA FOR HANDICRAFTS ARTISANS.

Credit Guarantee Scheme
The objective of the scheme is to alleviate the problems of collateral security or third party guarantee and remove implements to flow of credit in the handicraft sector.

Under this scheme credit guarantee cover of upto 75% of the credit facility is provided subject to maximum of Rs. 18.75 lakhs for the loan upto Rs. 25 lakhs.

An amount of Rs. 5.10 Crore has been placed with 7 Regional Coordinator Banks towards guarantee fee. This is expected to facilitate a credit of Rs. 222.50 crore to cover target of 94,000 artisans during 2006-07.


The handicrafts artisans/ manufacturers/ producers who are engaged in manufacturing activities in Handicrafts Sector are covered under Credit Guarantee Scheme.

Training & Extension
The main objective of this scheme is to enhance the capacity building artisans, NGO etc. and to meet the administrative expenditure of Carpet Weaving Training Centre in J&K and 23 cane & Bamboo departmentally run training centres.


Incurring expenditure for conducting field visits/study tours in India and abroad to give exposure to designers and master craftspersons working in handicrafts sector with a view to enable them to learn and adopt best practices prevailing for promotion and development of handicrafts sector in India.Financial Assistance for capacity building and to conduct awareness-cum-training workshops/seminars for artisans, NGO's etc. in various spheres related to handicraft sector.

Eligible Organizations
The scheme shall be implemented departmentally as well as through reputed research institutions, registered organisations/public sector units, experts etc. specialising in concerned areas.

Research & Development
The main objective of the scheme is to have a regular system of feedback of economic, social, aesthetic and promotional aspects of various crafts and artisans in this sector and to address the issues arising out of WTO stipulation case.

The components include:
  • Surveys/Studies of specific crafts for which adequate information is not available,
  • Problems relating to availability of raw material, technology, design, common facilities, etc.,
  • Living and working conditions of artisans in specific areas or crafts,
  • Market evaluation studies of specific crafts for either domestic or overseas markets,
  • Techno-economic feasibility studies and post evaluation of the various promotional projects or programmes undertaken in the handicrafts sector,
  • Areas requiring special study for uplift of the weaker sections viz. Scheduled castes and Scheduled Tribes,
  • Financial assistance for preparation of leagal, para legal, standards, audits and other documentation leading to labelling/certification.
  • Financial assistance to organizations for evelving, developing a mechanism for protecting crafts, design, heritage, historical knowledge base, research and implementation of the same enabling the sector/segment to face challenges for utilizing the opportunities of post WTO regime,
  • Financial assistance for taking up problems/issues relating to brand building and promotion of Indian Handicrafts and
  • Any other problems/issues of specific nature relating to handicrafts sector.
Assistance under the scheme will be extendable to an organization registered under any of the statutory Acts (Companies Act 1956, Societies Registration Act 1860, Cooperative Act etc.) or registered with any bodies like DCSSI, Office of the Development Commissioner (Handicrafts), etc. or universities and recognized research institutions. Generaly, such assistance would not be etendable to any particular individual unless he is an eminint scholar or a person associated with promtion of handicrafts for a long time.

Export Promotion

The objective of the scheme is to promote export of handicrafts including hand knotted carpets and floor covering from Indian. Initiatives such as identification of handicrafts concentration area for development of exportable products, undertaking research and studies in order to identify markets abroad, taste and fashion, prevailing designs etc., participation in exhibitions etc. and addressing the issues emerging out of the liberalized and post WTO era would be undertaken under this scheme.

  • Product Development
  • Publicity and Marketing
  • Social and other welfare measures
The financial assistance under the scheme is extended to the Central/State Handicrafts Corporations, Council of Handicrafts Development Corporation (COHANDS), Apex Coop. Societies, NGOs registered under Society's Act Trusts, and such other organizations engaged in the development and promotion of handicrafts sector registered under any other Statutory Acts, EPCH, CEPC, NCDPD, IICT, India Exposition Mart, Registered Handicrafts exporters, reputed designers/technologists approved by CEPC/EPCH/Office of the DC (H).

Design & Technology Upgradation
Design & Technology Upgradation scheme aims at upgradation of artisans skills, improvement and diversification of products, development of new design of prototypes, supply of improved/modern equipments to the craftpersons, revival of rate crafts to preserve the traditional heritage, preservation of traditional art & crafts of high aesthetic value, etc.

  • Financial assistance to Institutes like IICT, MHSC, NCDPD etc.
  • Activities of RDTDCs. - DTC in CArpets in J & K and Cane & Bamboo in the country.
  • Financial Assistance to Shilp Guru (Heritage Masters).
  • Financial Assistance for training under Guru Shishya Parampara.
  • Financial assistance for training the trainer.
  • Financial assistance for Development supply/Dissemination of Modern Improved Tools, Equipments, Products and Process Technologies.
  • Assistance for Design & Technology Development Project.
  • Assistance for Integrated Design & Technology Development Project.
  • Documentation Preservation and Revival of old and rare and Languishing crafts.
  • National Award for outstanding contribution in Designs in Handicrafts sector.
  • Financial Assistance for Institutions to be set-up under the State Initiatives.
  • Financial Assistance for setting up of museum or for already existing museum.
Financial assistance under the Design and Technology Upgradation Scheme is extended to the Central/state Handicrafts Corporation, Apex Cooperative Societies, NGOs registered under Societies Act, Trust, Handicrafts Societies, EPCH, CEPC, COHANDS, NCDPD, MHSC, IICT, Crafts Council of various States, NID, NIIFT, IIT and other reputed institute dealing in handicrafts, renowned designers, technologist, Shilp Gurus National Awardees, Master craftpersons, experts having experience in handicrafts.

Marketing Support & Services
The main objective of this scheme is to create awareness of Indian Handicrafts among the masses by organising a number of marketing events in big and small cities, to provide financial assistance to state Handicrafts Development Corporations, Apex Cooperatives and prominent NGOs for opening new Emporia at suitable places to enable the craftpersons to have permanent sales outlets for their products, to popularise and publicise handicrafts sector, to provide services in the form of enterpreneurship development programme etc.

Components and Sub-Components
  • Marketing Events (Holding of National  Handicrafts Expo, Holding of Crafts Bazars and Holding of Exhibitions)
  • Marketing Infrastructure (Setting up of Urban Haat/crafts specific Haat/Local Haats, Opening of new exporia/renovation expansion of existing emporia, Setting up of Craft Development Centres)
  • Marketing Services (Holding of Marketing Workshops at National/State/Local Levels programme and Enterpreneurship Development)
  • Publicity (Internal Publicity)
Eligibility: Grant-in-Aid
The financial assistance under the scheme shall be extended to the Central/State Handicrafts Development Corporations, COHANDS, Apex Societies, NGO's registered under Society Act, Trusts and such other organization engaged in the development and promotion of handicrafts sector registered under or any other statutory Acts.

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