India’s handloom industry, with roots tracing back to the Indus Valley Civilization, stands as a testament to the nation’s rich cultural heritage and craftsmanship. However, in recent decades, this sector has faced significant challenges, notably a decline in the number of active weavers. In 1995, there were approximately 43.31 lakh (4.331 million) weavers, but by 2020, this number had reduced to around 26 lakh (2.6 million), primarily due to low wages and stiff competition from power looms.
Current Status as of March 2025
Despite these challenges, the handloom sector remains a vital part of India’s economy and cultural identity. According to the Fourth All India Handloom Census, there are over 36 lakh (3.6 million) weavers and allied workers in the handloom sector, with 72% consisting of rural women. The sector contributes 19% of India’s textile production, and its global exports extend to over 20 countries.
Government Initiatives
To revitalize the handloom industry, the Government of India has implemented several initiatives:
- National Handloom Development Programme (NHDP): Designed for implementation from 2021-22 to 2025-26, NHDP aims to facilitate integrated and sustainable development of handloom weavers into independent, cohesive socio-economic units.
- Raw Material Supply Scheme (RMSS): This scheme ensures the availability of yarn to handloom weavers at reasonable prices, providing a 15% price subsidy on cotton hank yarn, domestic silk, woollen and linen yarn, and blended yarn made from natural fibres.
- Weavers’ MUDRA Loan/Concessional Credit Scheme: Offers margin money assistance to individual weavers and handloom organizations, along with interest subvention and credit guarantee fees on loans for a period of three years.
Collaborations and Market Expansion
Collaborations between traditional artisans and global brands have opened new avenues for the handloom sector. Designers like Vaishali Shadangule have showcased collections at international platforms such as the Paris Couture Week, blending traditional Indian textiles with modern silhouettes. Global brands, including Burberry and Louis Vuitton, have incorporated Indian handloom fabrics into their designs, enhancing the global appeal of these products.
Events like Bharat Tex 2025, held from February 14 to 17, 2025, in New Delhi, have further promoted India’s textile ecosystem. The event featured over 5,000 exhibitors and attracted more than 1,20,000 trade visitors from over 120 countries, showcasing India’s leadership in the textile sector and its commitment to innovation, sustainability, and global collaboration.
Future Outlook
The global market for handloom products is projected to grow from USD 8.95 billion in 2025 to USD 16.62 billion by 2032, exhibiting a CAGR of 9.24% over the forecast period. This growth is driven by a convergence of economic, ethnic, and environmental factors, including a growing appreciation for artisanal craftsmanship and eco-friendly products.
In India, the handloom product market is anticipated to retain its dominance by progressing at an annual growth rate of 11.10% till 2034. This growth is attributed to the familiarity of Indians with handloom products and the availability of raw materials at affordable costs, enabling small-sized manufacturers to procure raw materials at an affordable cost.
Conclusion
While the handloom sector faces challenges such as competition from mechanized textile mills and the reluctance of younger generations to continue the family tradition due to low wages, the combined efforts of the government, private sector, and global collaborations present a promising future. With sustained support and innovation, the handloom industry can continue to thrive, preserving India’s rich cultural heritage while adapting to contemporary markets.