The objective of the department is to promote the growth of various components of the textile industry such as handloom, powerloom, spinning and finished garments.

[2][3] Coimbatore is often referred to as the Manchester of South India due to its cotton production and textile industries.

[8] As of 2021[update], 40% of leather goods exported from India worht ₹9,252 crore (US$1.1 billion) are being manufactured in the state.

The department of handlooms is responsible for ensuring the sustainability of the weavers by facilitating raw materials for production, infrastructure support, marketing and sales of finished goods through Co-optex.

The department is responsible for modernization of the powerloom sector, up-skilling of workers and facilitating marketing and exports.