Investment Promotion Scheme (IPS) For Handicraft Artisans: Assistance For Capital Investment For The Handloom And Handicrafts Artisans Of The U.T. Requiring Financial Assistance For Purchase Of Machinery Or Raw Materials
Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu · Central government
Capital subsidy scheme for handloom and handicraft artisans in Dadra & Nagar Haveli and Daman & Diu, funding machinery purchases and working capital.
Open for applications. Applications close on 19 May 2027 — 290 days left.
Key facts
- Subsidy amount
- Up to ₹4,00,000
- Instrument
- Subsidy
- Deadline
- 19 May 2027
- Disbursement
- Reimbursed after spend
About this scheme
The sub-scheme "Assistance For Capital Investment For The Handloom And Handicrafts Artisans Of The U.T. Requiring Financial Assistance For Purchase Of Machinery Or Raw Materials" functions under the broader Investment Promotion Scheme (IPS) for Handicraft Artisans. It was first introduced on July 3, 2015, for a five-year period, and has since been renewed from May 20, 2022, with operations continuing until May 19, 2027. The Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu manages its implementation.
The parent Investment Promotion Scheme (IPS) seeks to deliver incentives and support to the MSME sector, helping it withstand market volatility and remain viable. Its goals include positioning the Union Territory as a dedicated MSME hub, raising women's business participation, cutting local unemployment, and encouraging industries to hire resident workers. This particular sub-scheme targets Handloom and Handicrafts artisans in the U.T., offering capital subsidies for machinery purchases and working capital assistance for raw materials. Such backing aids business growth, preserves traditional crafts, and allows artisans to modernise and expand their operations.
Who can apply
- Eligible business forms
- Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Dadra and Nagar Haveli and Daman and Diu
- Applicant must be a Handloom and Handicrafts artisan. - Applicant must be a resident of Dadra and Nagar Haveli & Daman and Diu. - Applicant should be above 18 years of age. - Applicant must be interested in purchasing machinery or raw materials for business development. - Applicant must possess Handloom or Handicraft art skills and be able to demonstrate their products to an official committee.
How to apply
The application process is conducted entirely online and is split into two phases: registration and submission of the application.
**Registration Phase:** 1. Go to the registration page of the official website (swp.dddgov.in/registration). 2. Fill in the required details in the fields shown and select 'Register'. 3. Confirm your email address by opening the verification link sent to your registered email (check the spam folder if it does not appear). 4. Use the link from the email, or paste the URL into your browser, to finish verifying your account. 5. Enter '111111' as the OTP to verify your mobile number. Your mobile number and PIN will be dispatched to your registered email address. 6. Once registration is complete, your login credentials will be emailed to you.
**Application Phase:** 1. Access the user login page of the official website (swp.dddgov.in/login). 2. Enter your registered mobile number and the PIN from your email, then select 'Log In'. 3. After a successful login, choose the 'Departments & Services' tab from the menu on the left. 4. Scroll to 'District Industries Centre DD & DNH' and press the 'Click Here' button to apply under 'Investment Promotion Scheme: 2022 to 2027 (20 May 2022 to 19 May 2027)'. 5. A 'Common Application Form' will appear. Complete all the fields and upload every required document as indicated. 6. Once all information is entered, review every detail carefully and press 'Submit' to finish.
How applications are assessed
The evaluation process requires applicants to present their craft skills and exhibit finished products. Candidates must hold authentic expertise in Handloom or Handicraft art and provide a live demonstration of their work. This demonstration is reviewed by a designated committee, usually including the General Manager (GM) of the District Industries Centre (DIC), the Director (Tourism), and the CEO (District Panchayat). The committee examines the artisan's craftsmanship and the soundness of their business development proposal to decide whether they qualify for the capital subsidy.
Frequently asked questions
Who is eligible to apply for this scheme?
The scheme is open to Handloom and Handicraft artisans residing in Dadra and Nagar Haveli & Daman and Diu who are above 18 years of age and wish to grow their business by purchasing machinery or raw materials. Applicants must also present their craft skills and products to a designated committee.
What kind of financial assistance is provided?
The scheme provides two capital subsidies: a Machinery Investment Subsidy covering 50% of investment (capped at ₹2,00,000) and a Working Capital Loan Subsidy covering 50% of the loan (capped at ₹2,00,000). The combined maximum subsidy per artisan is ₹4,00,000.
Are there any additional benefits for specific groups?
Artisans from Scheduled Castes, Scheduled Tribes, women, and persons with disabilities (30% or more disability) receive an extra 10% subsidy.
What is the application process?
Register on the official website (swp.dddgov.in/registration) and verify your email and mobile number. After logging in, go to 'Departments & Services', select 'Investment Promotion Scheme: 2022 to 2027', and submit the Common Application Form with the required documents.
Is co-financing required for this scheme?
Yes, you must fund the remaining 50% of the cost yourself, either through your own capital or a loan, as the scheme subsidises only half of the investment or borrowing.
What is the deadline for applications?
The scheme is currently open for applications, with a deadline of May 19, 2027. Applicants are advised to submit well before this date.
Sectors
- Manufacturing Industrial
- Social Impact
- Handicraft
- Handloom
- Artisan
- Microenterprise
- Capitalsubsidy
- Machinery
- Rawmaterials
- Damandiu
Details last verified on 3 August 2026. Source: the issuer's published information.