Step into the lanes of Varanasi, where shimmering Banarasi silks catch the light, or wander through the quiet workshops of Kanchipuram as artisans weave golden zari threads into sarees. India’s handloom sector – with deep pockets of craft, culture, and creativity scattered across the country – inherits greatly from the past and tells the unique story of art and enterprise. But to truly unlock the potential of India’s artisan economy, we must ask: How can different players in the ecosystem, from government to markets, help address barriers facing these communities so that they can chart a path to economic empowerment and sustainable growth?

Step into the lanes of Varanasi, where shimmering Banarasi silks catch the light, or wander through the quiet workshops of Kanchipuram as artisans weave golden zari threads into sarees. India’s handloom sector – with deep pockets of craft, culture, and creativity scattered across the country – inherits greatly from the past and tells the unique story of art and enterprise. But to truly unlock the potential of India’s artisan economy, we must ask: How can different players in the ecosystem, from government to markets, help address barriers facing these communities so that they can chart a path to economic empowerment and sustainable growth?

Today, only agriculture supports more livelihoods in India than the artisan economy. Putting this into perspective, if India’s estimated artisan workforce – comprising over 200 million, linked directly or indirectly to artisan livelihoods – were a country, it would have a population larger than that of South Africa, Italy, and the United Kingdom combined. Handlooms are a vital source of dignified employment to people across vulnerable, marginalised communities – employing women and people from Scheduled Castes, Scheduled Tribes and Other Backward Castes, with a majority in rural India. However, challenges persist: A majority of the artisans earn less than the average monthly income of India, and only about one in three get consistent wages. They face roadblocks ranging from limited market access and raw material cost increases or shortages owing to erratic climate patterns to competition from machine-made goods and declining demand.

If we are serious about our heritage, we must do all we can to preserve the handloom sector, support the weavers through appropriate market access, innovative funding models, digital adoption, and strategic branding.

India’s artisan economy thrives on centuries of tradition. Yet, for them to compete in modern markets, they require not just talent but institutional support. The government, recognising this, has worked to ease their financial burdens and build a more enabling ecosystem. The National Handloom Development Corporation, for instance, offers weavers a 15% subsidy on yarn to help increase their market share and ensure high-quality raw materials at reasonable costs. The Weaver Mudra Loan Yojana which advances credit access, is also useful.

Beyond financial support, holistic interventions to uplift artisans are vital. The National Handloom Development Programme has been doing promising work in this space – from developing small and mega clusters to scaling marketing and infrastructure support. Artisan clusters have evolved through the years by virtue of local entrepreneurship, regional networks, and state governments. With well-established clusters, such as the Chanderi Textile Handloom Cluster, we must focus on replicating successful models while addressing barriers that continue confronting our artisans. Scaling their growth requires a long-term vision and concerted efforts – from equipping them with the right tools to streamlining market linkages.

While the weavers create true works of art, the next generation is not taking to the profession. To usher in the next generation of artisans, skilling and scholarship schemes, as well as dedicated seats in design/fashion institutes like the Indian Institute of Handloom Technology and NIFTs can support the next generation to take up the craft.

A branding and digital integration push is essential to take this sector to new heights. The artisan economy has been supported by district, state, and national level melas, marketplaces like urban haats and Dilli Haat, and, occasionally, international fairs. However, these serve only a fraction of India’s vast weaving community.

Finding innovative ways to connect artisans to buyers and democratise access to their work is essential – and foraying into digital expansion, such as via e-commerce, offers a promising solution. It is imperative to ease this transition so that weavers can tap into markets beyond local bazaars.

To ensure the industry flourishes, we also need to go beyond individual weaves and tell a loud, bold Incredible India story for our handlooms. Just as Kerala, or God’s Own Country, branded itself as a sought-after tourism destination, India’s handloom story deserves its own time in the spotlight and a cohesive strategy that ties together the sector as a symbol of heritage, artistry, and slow fashion. Among other steps, promoting craft tourism villages with the nation’s tourism department can help engage a larger audience with more immersive experiences.

Woven deep into our roots, handlooms are living traditions – and we must not neglect the potential to build on previous generations’ work by nurturing young entrepreneurs, not just artisans, who can bridge gaps between traditional practices and contemporary markets. Not all weavers want to shift focus from their craft to becoming business owners. We should, therefore, create pathways where those with the skills to market are enabled to do so, while others continue on as artisans, supported by entrepreneurs who can usher in sustainable growth.

India’s artisan sector has the potential to transform into a thriving, globally recognised powerhouse, with artisans becoming active players in India’s journey to a Viksit Bharat. This transformation goes beyond economic growth—it creates a ripple effect, uplifting marginalised communities and fostering inclusive development. We must answer this call to action collectively.

This article is authored by Arti Ahuja, former secretary, ministry of labour and employment, Government of India and Subhashree Dutta, managing partner, livelihoods ecosystem, The/Nudge Institute.