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Why does handloom remain a key part of India's economy?

Priyambada Jayakumar11 August 2026
AI generated · reviewed by TIE

More than 35 lakh weavers and allied workers sit at India's handlooms, spread across over 31 lakh households. Nearly 70% of them are women. Between them they make about 15% of the country's cloth, almost entirely by hand.

That is not a craft. That is an industry, and it is one of rural India's largest sources of work outside farming.

Now here is the writer's point. Handloom is usually filed under culture — valuable, admired, economically small. She argues that reading is simply wrong, and the number that settles it is the capital. Handloom does all of the above on very little investment. Few manufacturing sectors create as many jobs for so small a sum. And India's central economic problem is exactly that — manufacturing that does not create enough jobs per rupee put in.

The trouble is not with the famous weaves. Those still sell. It is the hundreds of lesser-known traditions that are dying, as returns fall, markets stay scattered, and families stop teaching the skill to their children.

Her answer has two halves. Stop selling handloom because it is old and start selling it as premium — craftsmanship, sustainability, exclusivity — with limited production treated as a feature rather than a weakness.

The second half is duller and probably matters more. Nobody counts this sector. There is no reliable figure for what it contributes to GDP, exports, taxes or household income. A sector that is not counted cannot be planned for, and will keep being treated as small.

Where this sits

  • GS3Indian economy — employment, growth and development; issues relating to planning and mobilisation of resources
  • GS1Indian culture — salient aspects of art forms and crafts from ancient to modern times
  • GS3Inclusive growth and issues arising from it; rural non-farm employment and women in the workforce

Points discussed

  1. 35 lakh workers

    across over 31 lakh households, with women nearly 70% of them. It is one of rural India's largest sources of non-farm employment.

  2. 15% of India's cloth

    still comes off handlooms, produced almost entirely with manual technology.

  3. Jobs per rupee

    is the real argument. Few manufacturing sectors create so many jobs on so little capital — and India's structural problem is manufacturing that does not employ enough for what is invested in it.

  4. The dying weaves

    are the lesser-known ones, not the celebrated ones. Returns are falling, markets are fragmented, and the skill is no longer passed down within families.

  5. Premium, then measurement

    is the two-part answer. Sell handloom for craftsmanship, sustainability and exclusivity rather than for being old; and start measuring what it contributes to GDP, exports, taxes and household incomes.

Summary and analysis are written by The Insight Express and reviewed before publishing. We link to the original report; we do not reproduce it.