The day aims to honour India's handloom weavers and promote the handloom sector.
The day has been observed since 2015 to commemorate the launch of the Swadeshi Movement on 7 August 1905, which promoted the use of indigenous goods.
According to the Fourth All India Handloom Census (2019–20), India has 35.22 lakh handloom weavers and allied workers, of whom over 72% are women.
India has 28.20 lakh handlooms, with nearly 90% located in rural areas, supporting rural employment and livelihoods.
As of June 2026, 106 handloom products have received Geographical Indication (GI) registration, and India's handloom exports reached about ₹1,330.96 crore in 2025–26.