Introduction
India’s handloom tradition, dating back to 4000 BC in the Indus Valley Civilisation, is one of the world’s oldest and most sustainable textile practices. At its core is the intricate process of handloom weaving, which is the manual creation of fabric by intersecting lengthwise warp and crosswise weft yarns on a non-mechanised loom. While the sector faced setbacks during colonial times, it was revitalised by Mahatma Gandhi’s Swadeshi Movement. Today, it is one of the largest unorganised sectors, employing over 36 lakh people, 72% consisting of rural women and contributes 19% of India’s textile production. The sector’s global exports extend to over 20 countries. Beyond its economic significance, handloom is a custodian of India’s diverse cultural heritage, producing internationally acclaimed textiles like Banarasi, Pashmina, Muga and Kanjivaram. The successful fusion of traditional Indian textiles with modern silhouettes, as demonstrated by Vaishali Shadangule’s ‘Shwas’ collection at the Paris Couture week showcases a post-modern approach in its silhouettes while highlighting Indian heritage in its foundation. Global brands, including Burberry, Louis Vuitton, and Alberta Ferretti, have embraced Indian handloom, while companies like Microsoft support traditional weaving through CSR initiatives.
Each state’s weaving traditions assure that every handloom piece is a testament to India’s rich artistic legacy and sustainable craftsmanship. As India is the second-largest rural employer after agriculture, this sector exemplifies how traditional skills can support ecological preservation and economic growth by using natural materials, non-mechanised tools, and recycling practices.
The Government of India is actively promoting the handloom sector, enhancing global exports, and boosting international recognition through various initiatives, schemes, and policies outlined below.
Challenges Facing India’s Handloom Industry
Economic Hurdles
The handloom sector has declined, with the number of weavers dropping from 43.31 lakh in 1995 to 26 lakh by 2020, marking a 38% decrease. Low wages exacerbate this decline, deterring new generations from the craft. The Third Handloom Census (2009-10) showed that most weavers earned very little, with an average yearly income of ₹36,498, meaning 99% earned less than ₹5,000 a month. The Fourth Census (2019-2020) showed some improvement, but 67% still made less than ₹5,000 a month, and only 1.2% earned more than ₹20,000 per month.
Rising material costs, cheaper alternatives from power looms, and the current trend of fast fashion also affect handloom prices, risking its survival. Designers generally do not advocate for higher wages for weavers as it would increase production costs and reduce their profit margins. This could result in higher product prices, and supply chain costs, making them less competitive in the market. Further, handloom products, once everyday essentials, are now viewed as luxury items, creating a disconnect between their cultural roots and modern demand.
Workforce and Skills Crisis
The sector confronts a growing generational divide as youth exhibit little interest in weaving while experienced weavers resist innovation. Limited digital knowledge also restricts market access despite e-commerce opportunities which is further exacerbated by the rise of Generative AI technology.
Governance and Legal Challenges
Weak enforcement of the Handloom Act, schemes and mismanaged cooperative societies damage the sector. Government policies often favour power looms over handlooms, further impacting weavers. Rapid technological progress outpaces legal frameworks, creating gaps like copyright protection for traditional designs. Many protective measures remain in draft stages, exposing artisans to exploitation and unprotected against evolving threats. For instance, the Khadi and Village Industries Commission (KVIC) prohibition on using the term “khadi” for certain products led to lawsuits against companies like Levi’s and Fabindia, highlighting the challenges within the handloom industry.
The AI Revolution
Advancements in generative AI technologies, including deep learning models and generative adversarial networks (GANs), have the potential to reshape industries worldwide. However, these innovations bring both opportunities and challenges for India’s handloom sector. While AI can streamline operations, its automation capabilities threaten skilled artisans by mimicking and remixing traditional designs, often disregarding their cultural significance and risking job losses, leading to ethical implications over intellectual property theft and cultural appropriation.
The environmental impact is another urgent concern, as the energy intensive nature of AI training intensifies sustainability issues in an already resource constrained industry. While traditional handloom weaving has low environmental footprint, integrating AI could significantly increase emissions. The fashion industry contributes 10% of global carbon emissions, more than all the international flights and maritime shipping combined. Integrating AI in the fashion industry could increase emissions by over 50% by 2030.
Despite these challenges, AI offers transformative opportunities for the handloom sector. It can improve efficiency, reduce costs, simplify documentation, supply chain management, and colour and fabric selection processes. AI can also support market trend analysis, personalised design recommendations, virtual try-ons, and optimise e-commerce platforms. Besides, it enables better feedback analysis, integrates chatbots for customer service, and assures timely product delivery, helping artisans adapt to modern consumer demands while maintaining their craft’s heritage.
For instance, Bengaluru-based startup KOSHA.ai lauded by the Prime Minister, presents this potential by using sensor-activated (Internet of Things) IoT devices to authenticate handloom products. By analysing loom movements, this technology distinguishes genuine handloom items from power loom equivalents, addressing counterfeiting while protecting artisan’s livelihoods and fostering transparency. Similarly, the Ministry of Textiles’ VISONXT initiative, which amalgamates western and traditional designs to keep up with the current fashion trends, is commendable. Further the 2023 Meghalaya Handicraft Pilot Project demonstrated how AI can support local crafts by integrating digital tools for authentication and marketing, increasing artisan incomes while preserving traditional designs.
The Way Forward
The Centre government’s initiatives, from GST on the handloom, partnerships with organisations like UNEP for handloom sustainable development, pilot AI integration projects, Bharatiya Vastra Shilpa Kosh craft repository, setting up of multiple Indian Institutes of Handloom Technology (IITS) and a plethora of schemes and policies for the promotion of the handloom sector is commendable.
The upcoming BharatTex 2025 offers a timely opportunity to revisit and revitalise the 2020 Textile Policy, focusing on frameworks that prioritise the integration of AI while preserving traditional craftsmanship, especially regarding generative adversarial networks (GANs) and copyright protections. Additionally, The Reservation Act must be strictly enforced to protect authentic handloom products from power loom imitations. The industry should break out from silos and handicraft must also be incorporated in retail and fast fashion to appeal consumers globally.
Digital transformation through IoT-based authentication systems and QR codes for product verification, scaling Government e Marketplace (GEM) implementation and establishing Bharat Mandapam centres across states will create strong marketing channels.
Revitalising India’s handloom sector requires the efficient implementation of existing schemes, with an emphasis on digitalisation and clear accountability. A strong three-tier monitoring system at the central, state, and district levels is essential to connect artisans directly with consumers, eliminate intermediaries, and secure better returns for the artisans.
India’s handloom sector exemplifies the nation’s rich cultural heritage and sustainable growth potential, spanning from farm to fibre and factory to fashion. It embodies style, sustainability, scale, and skill. By embracing these values, as advocated by Prime Minister Narendra Modi, and through collaborative efforts from the government, private sector, and consumers, India can balance tradition with modernity, ensuring the legacy of handloom weaving while positioning itself as a global leader in sustainable textiles, driving economic growth and social empowerment.
Author’s Bio: Jim Moirangthem holds a Bachelor’s and Master’s degree in Political Science from the University of Delhi. He has contributed to evaluating the National Education Policy (NEP) and promoting socio-emotional learning in policymaking through his work with UNESCO. At the Lok Sabha’s Speakers Research Initiative, he supported legislative officials in shaping policies on elections and citizenship.