The handloom sector, with its rich legacy and deep socio-economic significance, remains one of India’s largest cottage industries. According to the Fourth Handloom Census (2019-20)1, there are over 31 lakh handloom weavers and allied workers across the country. A vast majority — over 70 per cent — are women, and nearly 80 per cent operate from rural areas, making the sector a vital source of livelihood and cultural identity.
Despite its economic importance, the handloom sector faces numerous challenges — rising raw material costs, competition from power looms and synthetics, limited credit access, and weak marketing support. And, in recent years, lack of demand has emerged as a critical issue.
According to Census, 50 per cent of weavers cited lack of demand as the main reason for idle handlooms. This data is further supported by the NSSO’s recent round of Unorganised Sector Surveys, which show a consistent rise in the proportion of handloom establishments reporting demand-related constraints. In 2010-11, only 10 per cent of handloom establishments reported demand-side challenges as their major obstacle, which rose to 29 per cent in 2015-16, and in the wake of the pandemic further increased to 47 per cent in 2022–23. Unfortunately, the latest round of the NSSO survey has not reported data on this crucial indicator — an omission that raises concerns given the preceding trend and the importance of the sector.
The pandemic-induced slowdown, changing consumer preferences, and reduced purchasing power have severely impacted handloom sales, leaving many weavers with unsold stock and idle looms. This highlights a growing mismatch between supply and market demand. Budget 2024-25 has continued support for schemes like the National Handloom Development Programme, focusing on training, tools, and raw materials. While these reflect a commitment to weavers’ welfare, the current policy approach remains heavily supply-side oriented.
To truly revitalise the sector, greater emphasis on demand-side measures — market creation, product promotion, and consumer awareness — are essential. Though platforms like Government e-Marketplace (GeM) offer new sales avenue, broader adoption is needed. Without strong efforts to boost demand and improving buyer access, supply-side initiatives alone may fall short in revitalising this sector.
Role of NGOs, private sector
Non-governmental organisations and private enterprises have played a crucial bridging role in supporting the handloom sector. Organisations like Dastkar, GoCoop, and Kala Cotton have led market linkage initiatives that connect weavers directly with consumers through digital platforms, exhibitions, and fair-trade partnerships. Startups like Okhai and Taneira have brought fresh visibility to handloom products by aligning them with contemporary design and urban tastes. These platforms also focus on storytelling — sharing the weaver’s journey — which helps build customer connection, justify premium pricing, and better margins for artisans.
State govts’ initiatives
Several State governments have also adopted innovative strategies to boost demand. Telangana, Andhra Pradesh, Tamil Nadu, and Odisha have institutionalised the use of handloom fabrics in school and police uniforms, as well as government furnishings providing steady income to the weavers. Schemes like Telangana’s Chenetha Mitra and Andhra Pradesh’s APCO Handloom brand offer financial incentives and e-commerce access. West Bengal’s Tantuja, Odisha’s Boyanika, and Tamil Nadu’s Co-optex have expanded online sales and diversified product offerings. Though these initiatives are promising, their impact remains geographically narrow and lacks scale.
Can digitisation help?
Despite policies being in place, awareness among weavers remains low. The Handloom Census (2019–20) shows that many weavers were unaware of government schemes aimed at their welfare, indicating a significant gap between policy design and ground-level impact. As markets go digital, online platforms offer a powerful way for weavers to access new customers and reduce reliance on middlemen. Yet barriers persist. More than 66 per cent of weavers earn less than ₹5,000 per month, making smartphones and consistent internet access unaffordable. Digital literacy is also low, especially among older weavers, and the gendered digital divide further limits access for women, who form the majority of the workforce.
According to the Census, only 0.1 per cent of handloom enterprises were using e-commerce platforms for sales. This points to the immense untapped potential of online selling to expand market reach and improve weavers’ earnings — especially as digital access improves. This is evident from the NSSO data, which indicates handloom establishments using internet rose from 8 per cent in 2021-22 to 20 per cent in 2024. Even though this is a modest trend, it indicates growing digital transition within the sector.
Organisations like Digital Empowerment Foundation (DEF) and Antaran (Tata Trusts) are already working on this front — conducting digital literacy workshops, training artisans to use WhatsApp for business, and on-boarding them onto e-commerce platforms. To support this shift, digitisation must be treated as a necessity. The government can partner with such organisations to scale training efforts, invest in rural internet infrastructure, offer subsidised devices and data plans, and promote schemes through local-language outreach.
India’s handloom sector is a symbol of tradition and skill, but tradition alone won’t ensure survival. A long-term plan must bridge products with market demand. By addressing demand-side gaps through awareness, digital tools, and outreach, and with supportive policies, the sector can revive and secure a sustainable future for weavers.
Basu is Research Associate, Subash is Professor of Economics, and Gopalaswamy is Professor of Finance & Accounting, IIT Madras