Andhra Pradesh Govt’s Big Boost for Handlooms: GST Relief & Free Electricity for Weavers

Why is the Andhra Pradesh Government Supporting Handloom Weavers?
The handloom sector is the second-largest rural employment provider after agriculture, supporting thousands of families in Andhra Pradesh. However, weavers face financial struggles due to high production costs, GST burdens, and competition from power looms. Recognizing their plight, Chief Minister N. Chandrababu Naidu announced key relief measures after meeting weavers in Jammalamadugu.


Key Initiatives:
✅ GST Relief: The state will fully pay GST on handloom products, reducing prices and increasing sales.
✅ Free Electricity: 200 units/month for traditional looms and 500 units for power looms to cut operational costs.
✅ Rs 5 Crore Thrift Fund: Financial aid for weavers during crises.
✅ Implementation from August 7: Coinciding with National Handloom Day.
These steps fulfill election promises and aim to revive demand, enhance incomes, and preserve traditional weaving.


Why is This Important for Competitive Exams?
Government policies on handlooms, GST, and rural livelihoods are frequently asked in UPSC, SSC, PSC, and KAS exams. Understanding such schemes helps in:
Economics & Governance sections (taxation, subsidies, welfare schemes).
Current affairs (state initiatives for traditional industries).
Essay writing & interviews (discussing rural employment and handicraft revival).


Questions & Answers for Competitive Exams
Q1: What is the significance of Andhra Pradesh’s decision to pay GST on handloom products?
Ans: It reduces weavers’ financial burden, makes handlooms more affordable, and boosts sales, supporting rural livelihoods.
Q2: How much free electricity will traditional and power looms receive under the new policy?
Ans: Traditional looms get 200 units/month, while power looms receive 500 units/month.
Q3: What is the purpose of the Rs 5 crore thrift fund for handloom workers?
Ans: It provides financial security during emergencies, helping weavers sustain their livelihoods.
Q4: When will these handloom initiatives be implemented in Andhra Pradesh?
Ans: From August 7, coinciding with National Handloom Day.
Q5: Why is the handloom sector crucial for Andhra Pradesh’s rural economy?
Ans: It is the second-largest employment source after agriculture, supporting thousands of families.


Andhra Pradesh’s new handloom policy is a game-changer for weavers, easing financial pressures and boosting market competitiveness. For aspirants preparing for government exams, tracking such schemes is essential for current affairs and policy-based questions. Stay updated with MyEntrance.in for more exam-focused insights!