The handloom sector constitutes a vital component of India’s rural economy, providing employment and preserving traditional craftsmanship. This study examines the livelihood opportunities and socio-economic conditions of handloom weavers in Sualkuchi, Assam—widely known as the “Manchester of the East.” The research is based on primary data collected from 150 respondents through structured questionnaires and interviews, supplemented by secondary sources. The findings reveal that the industry plays a significant role in income generation, particularly for women, who constitute a majority of the workforce. However, challenges such as raw material scarcity, competition from power looms, inadequate marketing infrastructure and financial constraints continue to hinder sustainable development. The study highlights the need for policy interventions, technological up-gradation and improved market access to strengthen the handloom sector and enhance the livelihoods of weavers.