Handloom production is providing supplementary income in most of households in rural Assam. Possibility to engage all family members, household based and labour-intensivecharacteristics makes this sector more suitable to rural structure of Assam.Also, the sector has the attribute to address women’s empowerment directly.Assam, the state of North East India has the highest concentration of weaver in the country. Next to agriculture, this sector identifies as the second largest employer in the state. The handloom industry is largely environment friendly generating sustainable income to society. It has been well established that handloom products have a promising role to play in the textile market.Given adequate support and protection from the government; it has enormous possibility to develop a very large market. Here, an attempt has been made to discuss about the status and performance of the handloom sector in relation to various factors coupled with thissector