Abstracts:- India is culturally, socially, economicallypolitically diversified and largest democratic country of the world. Small sector industry is not only our past glory but also it plays vital role in present to achieve inclusive growth targets for Indian economy .Handloom industry in one of them it generate job opportunity for semi and unskilled labour force ,it provides social security to rural and semi urban area’s workers and helps them to improve their social-economic condition of middle-low income group people in Indiaand alsoincrease our exports .Indian handloom industry is facing lots of problems like poverty ,low investment , outdated technology ,less government support and decreasing its products demand in market globalized economy from last couple of decades . Globalization sets both new opportunities and challenges toIndian handloom industry .This industry gets new technology, investment and markets on other hand it also lose their glory and demand in front of other competitive market. It has become necessary for us to improve quality of our handloom products by using advanced technology, moreinvestment and government protections.