Bag Manufacturing Unit: Industry Overview
The bag manufacturing industry is booming due to the increasing demand for fashion, utility, and eco-friendly bags across various sectors. From handbags to backpacks, jute bags to reusable shopping bags, the market is diverse, with a growing preference for sustainable and durable materials. With rising awareness about plastic pollution, consumers are shifting toward eco-friendly bag alternatives, boosting the demand for biodegradable, reusable, and stylish bags. Manufacturers in this industry cater to both local and international markets, offering a wide variety of products.
Subsidy Benefits for Bag Manufacturers
Subsidies for bag manufacturing businesses help cover costs associated with setting up production units, purchasing raw materials, and investing in machinery. The financial support is particularly beneficial for those focused on producing eco-friendly, biodegradable, or reusable bags. Manufacturers can also use the subsidy to expand production capabilities, upgrade machinery, and improve design features to meet the growing consumer demand for stylish yet sustainable bags.
Who Can Apply for Subsidy?
• New businesses entering the bag manufacturing industry.
• Existing bag manufacturers expanding their production or product range.
• SMEs focused on sustainable and eco-friendly bag manufacturing.
• Entrepreneurs looking to invest in eco-conscious production processes.
Eligibility and Document Requirements for Subsidy
1. Business Registration: Proof of legal business registration (e.g., incorporation certificate).
2. Manufacturing Setup: Documents verifying your manufacturing facility and machinery.
3. Financial Documents: Recent balance sheets and profit & loss statements to demonstrate financial stability.
4. Tax Records: GST or VAT registration documents.
5. Sustainability Compliance: Evidence of using eco-friendly materials and processes.
6. Subsidy Application Form: A filled-out form detailing the business plan and subsidy usage.
Why Choose Dhannaseth for Your Bag Manufacturing Subsidy?
Dhannaseth is dedicated to helping bag manufacturers grow their businesses through targeted financial support. Whether you’re a startup or an established player, our tailored subsidies help you scale operations, adopt sustainable practices, and stay competitive in a fast-evolving market.

To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!