From Loom to Ledger: Blockchain Traceability and NFT Integration for Sustainable Revival and Artisan Empowerment in India's Handloom Sector

Abstract

Abstract India’s handloom sector, the country’s second-largest rural employer after agriculture, faces existential threats from counterfeiting, power-loom imitations, fragmented supply chains, and declining artisan incomes. This study explores how blockchain-enabled traceability and Non-Fungible Token (NFT) integration can authenticate handloom products, protect intellectual property, ensure fair remuneration to artisans, and open premium global markets. Drawing on secondary data from government reports (2024–2026), academic literature, and emerging case studies, the paper finds that blockchain-based Digital Product Passports (DPPs) combined with NFTs can create tamper-proof provenance records while enabling royalty mechanisms for creators. Despite infrastructural and digital-literacy barriers, pilot initiatives demonstrate potential for 20–40% income uplift and reduced counterfeit penetration. The research highlights policy and technological pathways to integrate these tools with existing schemes such as the Handloom Mark and Geographical Indication (GI) tags. Ultimately, blockchain and NFTs offer a viable digital bridge between traditional craftsmanship and modern consumer demand for authenticity and sustainability.