Handicraft Policy of Assam, 2022
30%
State Capital Investment Subsidy (Up to ₹15L)
5% p.a.
Working-Capital Interest Subsidy (Max ₹2L/yr)
50%
Marketing / Advertisement Assistance (Max ₹30k/yr)
15
Recognized Handicraft Crafts (Annexure-I)
Why the policy exists, and what it sets out to achieve
Notified vide No. MI.52/2020/118, Industries, Commerce & PE Department, dated 16 March 2022; effective 1 February 2022. Policy period is stated as 5 years in the notification and 10 years in the policy text (§6.0.0) — see Key Dates & Administration for details.
Assam has a deep handicraft heritage — the Zapi (headgear), bell and brass metal work, traditional jewellery and masks (mukha) among them. Handicraft production is a largely rural, decentralized/unorganized activity that has grown into a flourishing economic segment with strong potential for livelihood and employment generation. The policy recognizes that stronger market linkage and scale can also help reduce rural-to-urban migration.
Constraints the Policy Targets
- •Old production techniques leading to higher cost and compromised quality.
- •Production schedules not synchronized with orders.
- •Product design and development not aligned to market requirements.
- •Non-availability of raw material of proper quality, standard and specification.
- •Non-standardization in product pricing.
- •Lack of convergence with other Government Departments / Schemes.
- •Lack of capital — especially access to credit for working capital.
- •Absence of adequate handicraft marketing outlets for direct marketing.
- •Inadequate access to urban markets.
Preamble & Vision
The State recognizes the role of handicraft industries/enterprises in providing self-employment to rural artisans, particularly women and weaker sections. The Vision is to create, support and sustain an enabling environment for the sector's development, generate sustainable livelihood, and preserve and evolve traditional craft and artisanal skills as an integral part of Assam's cultural fabric.
Objectives
- •Improve the socio-economic condition of artisans by ensuring minimum wages.
- •Facilitate growth of crafts-based businesses and make them economically viable through financial support.
- •Develop capacity of artisans and entrepreneurs through training and technology support.
- •Conserve traditional knowledge, skills and heritage — including use of GI (Geographical Indication).
- •Empower artisans with social security (Life Insurance, Health Insurance, ESI, Family Pension, education & food security) via existing State/Central schemes.
- •Provide market linkage / online marketplace using IT.
- •Provide scope for Research & Development.
- •Develop a mechanism to ensure Quality Control.
- •Assist the sector in making raw material available.
- •Assist entrepreneurs in export of products.
- •Harness benefits of Government of India, Export Promotion Councils and various institutions.
- •Construct Craft Villages.
- •Set up an Export Village centrally at Guwahati to improve product and market development.
- •Sign an MoU with the Tourism Department to allow sale of handicrafts at all its wayside amenity centres and tourism properties.
What qualifies as a handicraft, and who qualifies as an artisan/enterprise
| Term | Definition (as per Policy) |
|---|---|
| Handicraft (Policy) | An item/product produced through manual skills, with or without mechanical/electrical/other processes, which appeals to the eye by being artistic, aesthetic, creative, ethnic, or representative of cultural/religious/social symbols — traditional or contemporary. May or may not have functional utility; usable as a decorative item or gift. |
| Handicraft (UNESCO/ITC) | Artisanal products produced by artisans, completely by hand or with hand tools or mechanical means, so long as the direct manual contribution remains the most substantial component; produced without quantity restriction, using raw materials from sustainable resources. |
| Artisan / Craftsman | Any person engaged in/practising handicraft production as a source of livelihood. |
| Handicraft Enterprise | Any enterprise exclusively engaged in production of handicraft items — produced in a Common Facility Centre (CFC) — and owned/managed by an artisan, entrepreneur, Self Help Group, Co-operative Society, NGO, Partnership firm or Producer Company. |
Recognized Crafts — Annexure-I
- •Bell Metal
- •Brass Metal
- •Fireworks Craft
- •Jute Diversification Craft
- •Bamboo, Cane, Sitalpati
- •Water Hyacinth
- •Areca Nut Leaf
- •Jewellery Craft
- •Pottery
- •Craft from Dry Tea Bushes
- •Wood Carving
- •Decorative Candle
- •Silk Fabrics
- •Mask Making Art
- •Terracotta Handicrafts
The Photo Identity Card issued by the General Manager, District Industries & Commerce Centre (DICC) is the pre-condition for claiming any incentive — the recognized-craft list defines the scope of eligible activities.
Non-fiscal support across product, design, producer and sector
A · Product / Raw Material
| Support Type | Scope & Details |
|---|---|
| Raw Material Support | Facilitate easy availability of raw materials via Raw Material Banks and innovative procurement of quality raw material; PPP encouraged. |
| Forest-based Raw Materials | State Bamboo Mission, forest agencies, Panchayats to facilitate supply of bamboo, wood, Lac, sculpting stones etc. at cost, on recommendation of the appropriate authority. |
| Mineral-based Raw Materials | Dept. of Forests / Mines & Minerals (or vendors) to provide suitable stones at minimum rates to artisans/SHGs/Co-operatives/entrepreneurs/Raw Material Banks. |
| Raw Material Banks | Financial assistance to Government agencies / private entrepreneurs to set up Raw Material Banks in clusters or strategic locations. |
B · Design
- •Design & Product Development programmes with reputed designers, focused on market-oriented / lifestyle / utility products; collaboration with reputed institutes and private entities.
- •Subsidy for mechanization and technology up-gradation for mass production, standardization and quality control; R&D and Mix-media Application Centres to be set up.
- •State to harness Government of India schemes for craftsmen (see referenced bodies below).
C · Producer
- •Survey & Database: Baseline survey of every handicraft type; agency-run or departmental.
- •Portal / App: To assist in raw-material procurement, marketing, export, innovation and technology.
- •Photo Identity Card: Mandatory for availing benefits — issued by District-level officials for 3 years initially, then renewed every 2 years.
D · Sectoral Support
- •Cluster Development: Technology, raw material, capacity development, product design and marketing per cluster; leverage KVIC, DC-MSME and Ministry of Textiles cluster schemes.
- •Infrastructure: Common Facility Centres (CFC), Marketing Hubs, Craft Villages, Export Village and Training Centres in clusters/strategic locations, with private partners.
- •Brand Building: 'Craft of Assam' common logo, publicity across print/electronic/social media, dedicated web portal, tie-ups with national/international online portals, souvenir shops near tourist destinations.
Referenced Schemes & Convergence Bodies
This is an umbrella policy that draws on external schemes and institutions rather than replacing them. It expressly references: National Institute of Design (NID), Export Promotion Council for Handicrafts (EPCH), Indian Trade Promotion Council (ITPC), Development Commissioner (Handicrafts & Handloom), Craft Council, KVIC cluster schemes, Development Commissioner (MSME), Ministry of Textiles, State Bamboo Mission, ASRLM, GI registration, and an MoU with the Tourism Department. Social security is routed through existing State/Central schemes (Life/Health Insurance, ESI, Family Pension).
Several referenced bodies/schemes are separate programmes in their own right — confirm against the existing scheme diary before treating any of them as a new entry, to avoid duplication.
Detailed fiscal benefits (Annexure-I)
| Incentive | Quantum / Ceiling | Conditions |
|---|---|---|
| State Capital Investment Subsidy — Micro units (new) | 30%, max ₹15 Lakh | On workshop shed (production only), plant & machinery, tools, cost of land, installation & internal electrification — for handicraft unit / Raw Material Bank. Not to have claimed a similar subsidy under any other Central/State scheme. |
| Capital Investment Subsidy — old units (tech up-gradation) | 30%, max ₹5 Lakh | For mechanization & technology up-gradation for mass production, standardization and quality control. Same no-double-claim condition. |
| Marketing Assistance | Reimbursed up to 50%, max ₹30,000/annum, for 3 years | Towards advertisement in print / electronic / social media. |
| Interest Subsidy on Working Capital | 5% of interest paid, for 5 years, ceiling ₹2 Lakh/unit/year | On working-capital loan from Bank/Financial Institution. |
| Online Marketing | One-time up to ₹30,000 | For development of web portal / App for online marketing of products. |
| Awards to Handicraft | 3 awards per district per year — 1st ₹10,000, 2nd ₹7,000, 3rd ₹5,000 + citation | Given on Independence Day / Republic Day celebration or Annual Handicraft Week. |
Assistance for Participation in Fairs / Exhibitions
| Location | Stall Rent | Travel | Food & Lodging |
|---|---|---|---|
| Within the State | Reimbursed, max ₹7,000 | — | ₹500/day (lump-sum), max 10 days or actual fair dates, whichever earlier |
| Outside State, within India | 75%, max ₹10,000 | Actual railway sleeper-class to-and-fro fare | ₹500/day for two persons, max 10 days or actual fair dates |
| Outside India | 100% on sharing basis | Actual economy-class to-and-fro air fare | ₹1,000/day for one person, max 10 days or actual fair dates, whichever less |
All figures above are lifted verbatim from the notified policy (Annexure-I). Confirm each subsidy %/ceiling against the primary-source PDF and current departmental guidelines before quoting to a client, as a separate guideline/application document is to be issued by the Department.
Who approves incentives, and how
State Level Monitoring Committee (SLMC)
Chaired by the Minister of Industries & Commerce, Assam, the SLMC reviews implementation and is empowered to review/modify incentives and programmes in the public interest. Other members are notified by the Government.
Gateway condition: All incentives can be claimed only after obtaining the Photo Identity Card from the concerned General Manager, DICC.
District Level Committee (DLC) Composition
| Member | Role |
|---|---|
| Deputy Commissioner / District Development Commissioner | Chairman |
| Additional Director of Industries & Commerce (Zonal) | Vice Chairman |
| Deputy Commissioner of Taxes (in charge of district) | Member |
| District Employment Officer | Member |
| District Agriculture Officer | Member |
| Lead District Manager | Member |
| District Officer, ASRLM | Member |
| Representatives of lending banks | Member |
| General Manager, District Industries & Commerce Centre | Member Secretary |
Terms of Reference (DLC)
- •Scrutinize applications and approve fiscal incentives under the policy.
- •Meet as and when necessary, and at least once a quarter.
- •Chairman may co-opt experts/officers for specific proposals.
- •Quorum: At least 5 members including Chairman, Member Secretary and Commissioner of Taxes.
- •Member Secretary submits a report to Government on meetings and implementation progress.
- •Committee may review incentive implementation and suggest remedial measures to higher authority.
General provisions and reserved rights of the State
| Item | Provision |
|---|---|
| Interpretation | The decision of the Industries & Commerce Department, Government of Assam, on interpretation of any clause of the policy is final and binding. |
| Right to Amend Incentives | The Department reserves the right to amend, or withdraw, any incentive/subsidy as and when necessary in the interest of the sector and the general public. |
| Right to Review Sanction/Disbursement | The Department reserves the right to review sanction/disbursement of incentives to eligible units; the State Government's decision is final and binding. |
| Right to Make/Amend Rules | The Department reserves the right to make or amend rules for implementation of the policy as and when required. |
| Implementation Guidelines | A separate set of guidelines — including application forms and procedures for each incentive — is to be issued by the Department. |
Because application forms, procedures and detailed eligibility conditions are issued separately from the policy text, confirm the current guideline/form set with the DICC before filing any incentive claim — the policy alone does not contain the operative application procedure.
Notification history and administration
| Date | Milestone |
|---|---|
| 01/02/2022 | Policy comes into effect per the Notification (order dated 16 March 2022 states effect from 1 February 2022). |
| 16/03/2022 | Notification No. MI.52/2020/118 issued under Orders of the Governor of Assam, notifying the 'Handicraft Policy of Assam, 2022' — signed by Dr. K. K. Dwivedi, IAS, Principal Secretary, Industries, Commerce & PE Department, Dispur, Guwahati-781006. |
| 16/03/2022 | Memo No. MI.52/2020/118-A circulated to all Addl. Chief Secretaries/Secretaries, DCs, Commissioner of Industries & Commerce, DICCs, State PSU MDs (AIIDC/AIDC/ASIDC), DIPR, and the Assam Govt. Press for gazette publication (50 copies). |
Policy-period discrepancy in the source document: The Notification (order) states the policy 'will remain in force for a period of 5 (five) years,' while Policy §6.0.0 (Policy Period) states it 'shall remain in operation for a period of 10 (ten) years or till a new/revised policy, whichever is earlier.' The effective date also differs — 1 February 2022 (Notification) vs 'date of publication in the Official Gazette' (§6.0.0). Flag this to the Department/CA and confirm the operative period and start date before advising a client on availability.
Source: Handicraft Policy of Assam, 2022, Industries, Commerce & Public Enterprise Department, Government of Assam, notified vide No. MI.52/2020/118 dated 16 March 2022 (Memo No. MI.52/2020/118-A of even date), effective 1 February 2022. Fiscal figures per Annexure-I of the policy; recognized-craft list per Annexure-I (List of Recognized Crafts). For advisory purposes only. Subsidy percentages, ceilings and eligibility are reproduced from the primary-source policy PDF and must be re-verified against the Department's separately-issued implementation guidelines/forms and any subsequent amendments before filing an application. Incentive sanction/disbursement decisions rest with the District Level Committee and the Industries & Commerce Department.