National Handloom Sector Overview 2026
India's handloom sector employs 3.52 million weavers and allied workers, with over 72% (25.46 lakh) being women according to the Fourth All India Handloom Census 2019-20. The workforce includes 4.84 lakh Scheduled Caste workers, 6.28 lakh Scheduled Tribe workers, and 12.67 lakh Other Backward Classes workers. The census recorded 28.20 lakh looms nationwide, with 25.30 lakh (90%) located in rural areas and 2.90 lakh in urban areas.
Government Support Programs
The National Handloom Development Programme (NHDP) and Raw Material Supply Scheme (RMSS) form the core support system, with 2026-27 budgetary allocations of ₹205 crore and ₹200 crore respectively. Under NHDP's Small Cluster Development Programme, 357 clusters were sanctioned from 2021-22 to June 2026, with ₹94 crore released in 2025-26 for interventions including worksheds and electronic jacquards. These interventions demonstrated significant impact: workshed construction increased average daily production by 53% and daily earnings by 42% from ₹328 to ₹465, while electronic jacquards increased daily production by 55% and raised average daily wages by 56% from ₹360 to ₹560, boosting monthly income from ₹9,600 to ₹15,000.
The Handloom Marketing Assistance component organized 960+ events from 2021-22 to June 2026, facilitating product sales. The Sant Kabir Handloom Award (₹3.5 lakh + gold coin) and National Handloom Award (₹2 lakh) recognized 24 recipients in the 2024 cycle, including six women and one Divyang weaver. The concessional credit scheme provided 40,000+ loans totaling ₹280+ crore at 6% interest rate with government interest subvention of up to 7%.
Social Security and Welfare Measures
Social security schemes showed significant growth: enrolment in PMJJBY and PMSBY insurance schemes increased 80.8% from 1,11,957 weavers in 2021-22 to 2,02,393 in 2026-27 (till May), with funds released increasing 63.6% from ₹204.83 lakh to ₹335 lakh. Scholarship programs supported 531 applications for textile education since inception.
Fiscal and Policy Support
The 56th GST Council meeting in September 2025 reduced tax rates on 36 handicraft items from 12% to 5%, including cotton handloom rugs and handwoven carpets. Domestic and industrial sewing machines also saw rate reduction from 12% to 5%. The Union Budget 2026-27 introduced the National Fibre Scheme for textile raw-material self-reliance, Textile Expansion and Employment Scheme for cluster modernization, and integrated National Handloom and Handicraft Programme.
Market Access and Export Performance
Handloom exports reached ₹1,330.96 crore in 2025-26, with leading destinations being UAE, United States, France, United Kingdom, and Spain. Authentication mechanisms include 29,402 Handloom Mark registrations, 2,305 India Handloom Brand registrations across 184 categories, and GI protection for 106 handloom products. Digital platforms expanded access: 1.50 lakh weavers joined Government e-Marketplace (GeM), while Indiahandmade platform onboarded 4,186 weavers and artisans between 2023-24 and June 2026.
Sector Development Initiatives
The Mega Cluster Development Programme provided ₹370.72 crore assistance benefiting 1,62,682 weavers across eight completed and four ongoing clusters. The e-Pehchan portal launched in January 2025 registered 84,000 additional workers by July 2026. The Handloom Hackathon 2026 and Weave The Future 4.0 event promoted innovation and circular design in the sector.