National Handloom Day 2026: History, Weaver Demographics, and Government Schemes

National Handloom Day was observed across India on 7 August 2026, celebrating the country's weaving heritage and honouring handloom weavers and artisans. The day commemorates the Swadeshi Movement launched on 7 August 1905 at Calcutta Town Hall.

National Handloom Day History

1. India's handloom tradition traces back to the Indus Valley Civilisation, with references to spinning and weaving found across the Rigveda, Ramayana and Mahabharata, alongside accounts of fine Indian cotton and silk in Kautilya's works. 
2. Passed down across generations, these skills have taken distinct regional forms across the country. 
3. The institution of National Handloom Day in 2015 gave this centuries-old heritage a formal national platform.
4. The first National Handloom Day was celebrated on 7 August 2015.

 

In 2026, the observance highlights handloom's growing relevance among modern consumers and its expanding footprint in global markets, even as the craft stays firmly rooted in manual skill and household-based production.

The People Behind India's Handlooms

The Fourth All India Handloom Census (2019-20) recorded around 31.45 lakh handloom households and 35.22 lakh weavers and allied workers nationwide, of which 8.48 lakh are engaged in pre- and post-loom tasks such as winding, warping, dyeing and calendaring. India has conducted four such censuses so far, in 1987-88, 1995-96, 2009-10, and 2019-20, typically spaced 8-12 years apart.

Recognising and Registering Handloom Workers

1. Workers identified through the census receive Pehchan/e-Pehchan cards. To widen this coverage, the e-Pehchan portal was launched in January 2025, letting new and previously uncovered workers register while allowing existing cardholders to update details. By July 2026, close to 84,000 additional workers had been approved for e-Pehchan cards.
2. Women form the backbone of India's handloom workforce, accounting for 25.46 lakh workers, or more than 72% of all those engaged in weaving and allied activities.
3. The workforce also includes 4.84 lakh Scheduled Caste, 6.28 lakh Scheduled Tribe, and 12.67 lakh OBC workers. Of the 28.20 lakh looms recorded nationwide, 25.30 lakh are in rural areas and 2.90 lakh in urban areas, meaning nearly nine out of every ten handlooms operate in rural India.

Government Support for Handloom Sector

National Handloom Development Programme (NHDP) and Raw Material Supply Scheme (RMSS)

These two schemes form the core support system for the sector. NHDP, running from 2021-22 to 2025-26, takes a need-based approach to the integrated development of handloom weavers, implemented through government handloom organisations, state corporations, cooperative societies, federations, Handloom Producer Companies (HPCs), and participating banks. 200 HPCs were formed between 2020-21 and 2026-27. RMSS supports yarn access by reimbursing freight charges and offering a 15% price subsidy on specified yarns. Both schemes continue in 2026-27, with budgetary allocations of ₹205 crore (NHDP) and ₹200 crore (RMSS).

Small Cluster Development Programme (SCDP)

SCDP funds small handloom clusters with up to ₹2 crore each, covering better looms, worksheds, lighting, design and marketing support. Between 2021-22 and 2026-27 (till June), 357 clusters were sanctioned, with ₹94 crore released in 2025-26 for worksheds, looms and electronic jacquards. Workshed construction has lifted average daily production by 53% and daily earnings from ₹328 to ₹465, while electronic jacquards have raised daily wages from ₹360 to ₹560 (96% of beneficiaries reporting gains) and monthly income from ₹9,600 to ₹15,000.

Handloom Marketing Assistance (HMA)

HMA supports weavers through direct sales platforms, export promotion, and Urban Haats. Over 960 marketing events, including national and state-level expos and craft melas, were organised between 2021-22 and 2026-27 (till June). HMA also administers two national awards — the Sant Kabir Handloom Award (₹3.5 lakh, gold coin, tamrapatra, shawl and certificate) and the National Handloom Award (₹2 lakh, tamrapatra, shawl and certificate). The 2024 award cycle, presented on National Handloom Day 2025, honoured 24 recipients, including 5 Sant Kabir and 19 National Handloom awardees, among them six women and one Divyang weaver.

Weaver MUDRA Scheme

This scheme offers handloom-sector loans at a concessional 6% interest rate for three years, backed by government interest subvention of up to 7%, margin money assistance, and credit guarantee fee coverage, disbursed through the Handloom Weaver MUDRA Portal. Between 2021-22 and 2026-27 (till June), over 40,000 loans worth ~₹280+ crore were sanctioned, including 967 loans worth ₹7.45 crore in 2026-27 alone.

Handloom Weavers' Welfare (Social Security Measures)

Weavers are covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), offering ₹2 lakh life insurance for those aged 18-50, and the Pradhan Mantri Suraksha Bima Yojana (PMSBY), offering ₹2 lakh for accidental death/total disability and ₹1 lakh for partial disability for those aged 18-70. Enrollment under both schemes rose 80.8%, from 1,11,957 workers in 2021-22 to 2,02,393 by May 2026-27, with funds released increasing 63.6% in the same period. Scholarships of up to ₹2 lakh annually support two children per handloom worker pursuing textile education; 531 applications were sanctioned by June 2026.

Mega Cluster Development Programme

Each mega handloom cluster covers at least 10,000 handlooms and can receive central assistance of up to ₹30 crore over five years. Eight mega clusters are completed and functional, with four more under implementation. ₹370.72 crore has been released so far, benefiting 1,62,682 handloom weavers.

Need-Based Special Infrastructure Projects

This programme provides up to ₹12 crore for product development, productivity, quality improvement and marketing. Six Craft Handloom Villages are operational, with three more under implementation.

GST Relief for Handlooms and Traditional Crafts

Following the Next-Generation GST reforms recommended at the 56th GST Council meeting in September 2025, the tax rate on 36 handicraft items was cut from 12% to 5%, along with cotton handloom rugs and handwoven carpets. Sewing machine GST rates were also reduced from 12% to 5%.

Union Budget 2026-27: A New Policy Push

The Budget introduced the National Fibre Scheme to strengthen the textile raw-material base, the Textile Expansion and Employment Scheme to modernise traditional clusters with capital support for machinery and testing centres, and the National Handloom and Handicraft Programme to integrate existing schemes. The Mahatma Gandhi Gram Swaraj Initiative will further support khadi, handloom and handicrafts, benefiting weavers, village industries, and the One District One Product (ODOP) initiative through global market linkages and skilling.

Strengthening Market Access and Buyer Confidence

1. India's handloom exports stood at ~₹1,330.96 crore in 2025-26, led by the UAE, US, France, UK and Spain. 
2. Authenticity is safeguarded through the Handloom Mark (29,402 registrations by June 2026), the India Handloom Brand (2,305 registrations), and GI tags covering 106 handloom products. 
3. Digital platforms like GeM and Indiahandmade have onboarded thousands of weavers to connect directly with buyers.

PM Narendra Modi Promotes National Handloom Day 2026

On the eve of National Handloom Day, PM Modi asked people to buy at least one handloom product. He recalled the historical significance of 7 August 1905, when the Swadeshi Movement began against British rule. He saluted the skill and dedication of India's weavers and artisans, calling handloom an important pillar of rural empowerment, women-led development, and the vision of an Aatmanirbhar Bharat.