Handloom Development Department was re-named from cottage Industries in 1986-87 and was taken up by the Handloom sector J&K under the Ministry of Industries & Commerce J&K and after the bifurcation of J&K State formally on 31st October 2019, Handloom Development Department Leh and Kargil merged into to Directorate of Industries & Commerce of Union Territory of Ladakh. It is a genuine fact that Ladakh is the only high yielding pashmina and wool grower districts in the country.

The industries occupies a significant place in the socio- economic structure of Ladakh. The Handloom Dev. Department plays a catalytic role in modernization of handloom sector in the Union Territory through skill upgradation of weavers by providing modernized looms, training in design and weaving, marketing of Handloom products through marketing incentives and by fostering participation of weavers in National, UT, District level Handloom Expos and Melas.