The handloom industry is primarily rural-based commercial activities operated with primitive manual looms and is a decentralized cottage industry. It has a notable contribution to the growth of the country’s economy that precedes the agriculture sector when considered for catering to livelihood in the rural zone of India. As the e-commerce market proliferates in the country, the handloom sector is also stepping into online platforms for its sustainability and growth. So, this paper strives to assimilate the potency of e-commerce in the socio-economic development of handloom weavers and the initiatives taken by the government to uplift weavers’ livelihood conditions. This paper further ascertains the handloom sector’s outcome from individuals’ efforts and government interventions. The study is based on secondary data gathered from journals, commercial websites of handlooms, government reports, and books. The study conferred that the government has initiated bringing handloom products to the online market by collaborating with 23 online commercial platforms. It has resulted in positive results for proliferating the handloom industry and competing with global business. It will improve the financial position and employability scale of weavers resulting in their upliftment of the socio-economic conditions.