One of the most significant unorganized industries in the Indian economy is the handloom industry. According to some estimates, the handloom industry employs about forty lakh people. However, weavers involved in handloom production are unable to thrive in the face of fierce global competition and predatory tactics by multinational textile corporations, which threaten the survival of traditional handloom weavers through technical innovation. Due to these factors, the Indian handloom is always on the verge of hunger and starvation. The handloom industry’s strength comes from the fact that it is built on human talent, which is a component of traditional knowledge. Traditional knowledge cannot be adequately protected by the IP system in place. However, GI has developed as a legal tool for the defence and advancement of traditional knowledge. This is especially true in the case of the Indian GI Act, which covers a wide range of handloom products that are solely the result of human talent and independent of natural variables like typical area climatic circumstances. To preserve our rich historical and cultural legacy, it is imperative to safeguard and protect traditional methods, knowledge, and handloom products. Handloom weavers can benefit from Intellectual Property Rights protection under the existing worldwide regime. Some of the problems the handloom industry is currently facing and which give rise to legal issues include the socioeconomic circumstances of the weavers, the profitability of the handloom industry, the difficulties the weavers face, the accessibility of financial support, and innovative marketing strategies. Therefore, it is imperative that we consider these challenges and develop the kinds of plans that could aid the handloom business and weavers in improving their current situation. As a result, the paper looks at the current legal system for intellectual property rights to effectively safeguard the personal rights of handloom weavers as well as the craft itself.