Craft Handloom Village: To provide It is a modern-day concept wherein promotion of craft/Handloom products and tourism are being taken up at a single location. Artisans/weavers live and work at the same place and are also provided with the opportunity to sell their products, thereby ensuring livelihood to both domestic as well as international visitors. Craft items/handloom products are exhibited as well as sold in these villages. The tourists shall also be encouraged to operate looms and have hands-on experience of handloom weaving guided by the expert weavers.

As on date 11 Craft Villages are in various stages of development under the aegis of Ministry of Textiles, with active support and collaboration of respective State Governments. 6 of the villages are being developed by Development Commissioner of Handicrafts, and another 5 are being developed by Development Commissioner (Handlooms). Each Craft village is being developed by Ministry of Textiles in collaboration with the district administration of respective states. Ministry of Textiles is providing assistance towards improving infrastructure in existing villages where substantial number of weavers practicing similar crafts/handloom products are residing. The aim is to select villages that can be connected with some tourist circuit to ensure sale of handloom products.

Development Commissioner of Handloom has undertaken setting up of Craft Handloom Villages in Kanihama in J&K, Sharan in Himachal Pradesh, Mohpara in Assam, Bodh Gaya in Bihar and Kovalam in Kerala.