National Handloom Day 2026: Sector Overview and Government Initiatives
India celebrates National Handloom Day on 7 August 2026, commemorating the launch of the Swadeshi Movement in 1905. The handloom sector employs 35.22 lakh weavers and allied workers, with over 72% (25.46 lakh) being women. The workforce includes 4.84 lakh Scheduled Caste workers, 6.28 lakh Scheduled Tribe workers, and 12.67 lakh Other Backward Classes workers. Nearly 90% of India's 28.20 lakh handlooms are located in rural areas.
Government Support Programmes and Financial Allocation
The National Handloom Development Programme (NHDP) and Raw Material Supply Scheme (RMSS) form the core support system, with budgetary allocations of ₹205 crore and ₹200 crore respectively for 2026-27. The Small Cluster Development Programme has sanctioned 357 clusters from 2021-22 to June 2026, with ₹94 crore released in 2025-26 for interventions including worksheds and electronic jacquards. These interventions have demonstrated significant impact: workshed construction increased average daily production by 53% and earnings by 42% (from ₹328 to ₹465), while electronic jacquards increased daily production by 55% and wages by 56% (from ₹360 to ₹560).
Financial and Social Security Measures
The Weaver MUDRA Scheme provides concessional credit at 6% interest with government interest subvention of up to 7%. Between 2021-22 and June 2026, approximately 40,000+ loans amounting to ₹280+ crore were sanctioned, with 967 loans worth ₹7.45 crore sanctioned in 2026-27 alone. Social security schemes show enrollment growth: PMJJBY and PMSBY coverage increased from 1,11,957 weavers in 2021-22 to 2,02,393 in 2026-27 (till May), an 80.8% increase, with funds released growing from ₹204.83 lakh to ₹335 lakh (63.6% increase). Scholarship programmes have supported 531 applications for textile education since inception.
Market Access and Export Performance
Handloom exports reached ₹1,330.96 crore in 2025-26, with top destinations being UAE, United States, France, United Kingdom, and Spain. Authentication mechanisms include 29,402 Handloom Mark registrations (with 815 retail outlets) and 2,305 India Handloom Brand registrations across 184 categories. Geographical Indication protection covers 106 handloom products, 6 product logos, and 227 handicraft products. Digital platforms have enabled 1.50 lakh weavers to join Government e-Marketplace (GeM), while the Indiahandmade platform onboarded 4,186 weavers and artisans between 2023-24 and June 2026.
Regulatory and Policy Developments
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. The Union Budget 2026-27 introduced several new initiatives: the National Fibre Scheme to strengthen textile raw-material base, Textile Expansion and Employment Scheme for cluster modernization, National Handloom and Handicraft Programme for integrated support, and Mahatma Gandhi Gram Swaraj Initiative for global market linkages. The Handlooms Act, 1985 continues to protect 11 textile articles reserved for exclusive handloom production.