It's India's State and Local Governments are promoting this - most artisans that manufacturing these goods are doing so as part of a cooperative as Khadi and MSME Cooperatives is a major pillar for Indian politics and economic development, along with One District One Product [0] in order to build a heritage consumer goods industry similar to what Japan did.

It's also something that is deeply personal for Narendra Modi and Amit Shah [1] as they started their political careers climbing up the cooperative ladder - they were able to turn Gujarat from being a Congress only state to a BJP only state by co-opting cooperatives in the dairy industry [2]. And in Kancheepuram's case it's an extremely important industry in TN.

Furthemore, if Prada or Chanel buys Indian heritage artisan goods and gives it the luxury veneer, it helps MSMEs and khadi cooperatives demand better terms when wholesaling light manufactured products.

Finally, at a personal level, much of my family is associated with Khadi and Cooperative industries - they are one of the only ways to build medium or even high value industries while giving participants some degree of agency. The profits of khadi goods being sold at high margins ends up in the hands of cooperative members and cooperatives tend to re-invest in capacity building or subsidizing new entrants. This is why you see cooperative banks dot all of India.

[0] - https://www.investindia.gov.in/one-district-one-product

[1] - https://theprint.in/opinion/politically-correct/rahul-gandhi...

[2] - https://scroll.in/article/858585/amul-is-now-a-congress-mukt...