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August 7, 2025 1:42 PM IST

National Handloom Day | Mudra loans | handloom sector

On 11th National Handloom Day, India vows to protect its weaving traditions

The Indian handloom industry is one of the oldest and most vibrant cottage industries globally. With a legacy dating back thousands of years, it reflects India’s rich culture and skilled craftsmanship. 

Indian weavers have long been known for their expertise in hand-spinning, weaving and printing skills. They are located in small towns and villages across the country, where skills are passed down to the next generations.

From Swadeshi to Self-Reliance

The handloom sector played a vital role in India’s freedom movement. The Swadeshi Movement, launched on August 7, 1905, championed indigenous industries, especially handlooms, as a form of economic resistance to colonial rule.

In honour of this legacy, August 7 was declared National Handloom Day in 2015. Since the first celebration, inaugurated by Prime Minister Narendra Modi in Chennai, this day is observed to recognise the weaving community’s contribution to the nation’s socio-economic development, and renew our collective resolve to preserve and promote India’s handloom heritage.

Rich Variety of Indian Handlooms

India’s handloom sector is known for its wide range of fabrics, including cotton, khadi, jute, linen, and rare fibres like Himalayan nettle. It also produces distinctive silk varieties like Tussar, Mashru, Mulberry, Eri, Muga and Ahimsa, along with woollen weaves like Pashmina, Shahtoosh and Cashmere.

Every region in India has developed its unique handloom style. For example, Rajasthan is known for its tie and dye, Madhya Pradesh for Chanderi, and Uttar Pradesh for Jacquard patterns. These distinct traditions have made Indian handlooms popular both in India and around the globe for their detailed designs and artistic value.

Other well-known styles include Bomkai from Odisha, Kunbi from Goa, Paithani from Maharashtra, Kotpad from Odisha, Balarampuram from Kerala, Jamdani and Baluchari from West Bengal. Each piece is handmade using traditional methods, making every product unique.

Indian Handlooms in Global Markets

Indian handlooms are globally celebrated for their rich textures, earthy colours and intricate craftsmanship. India has emerged as the world’s only major producer of handloom fabrics at a commercial scale. Remarkably, nearly 95 per cent of the world’s handwoven fabric is made in India.

India’s handloom exports continue to find strong demand across global markets, reaching over 20 countries. In the financial year 2024-25, the United States remained the largest destination, accounting for ₹331.56 crore worth of exports. The United Arab Emirates (UAE) followed with ₹179.91 crore, while the Netherlands imported goods worth ₹73.88 crore. France and the United Kingdom (UK) were close behind at ₹66.14 crore and ₹65.6 crore, respectively.

What’s India doing for Handloom Development?

The Ministry of Textiles implements several important schemes to promote the handloom and handicraft sectors across the country, including rural areas.

The schemes offer financial support for raw materials, purchase of looms, tools and accessories, design innovation, product diversification, infrastructure development, marketing both domestically and internationally, and concessional loans to beneficiaries.

National Handloom Development Programme (NHDP)

The National Handloom Development Programme (NHDP) aims to promote the sustainable growth of handloom weavers in and outside recognised clusters by forming self-reliant and competitive units.

The scheme provides help with raw materials, design, technology upgrades, marketing through exhibitions, and building permanent infrastructure like Urban Haats and marketing complexes.

Raw Material Supply Scheme (RMSS)

The Raw Material Supply Scheme (RMSS) — earlier known as the Yarn Supply Scheme (YSS) — aims to support handloom weavers by ensuring the availability of quality yarn at affordable prices through the following key objectives and components.

MUDRA Loan

This scheme offers subsidised loans to weavers through banks at a low interest rate of 6 per cent. To make the process easier, the Online Handloom Weavers MUDRA portal has been created for direct transfer of margin money to weavers’ accounts, along with interest support and credit guarantee payments to banks.

The government also runs several other significant initiatives to promote the handloom industry, like marketing assistance, certification of handloom products, skill upgradation, etc.

Handloom Day Significance

National Handloom Day is a heartfelt celebration of India’s weaving traditions and the people who keep them alive. Through new ideas, collaborations, and technology, the sector is taking firm steps toward resilience and renewal.

India is dedicated to empowering artisans, especially women, to protect the rich weaving traditions and to ensure that the threads of heritage, sustainability, and self-reliance continue to weave a strong and vibrant future.

 

Last updated on: 7th Aug 2025