Abstract When we automate then we modernise it and when we automate human life then we primitivise it (Eric Hoffer, 1951). Banarasi saree is not just a cloth it is an alive proof of India's handloom. Banarasi sarees are beautifully designed by the use of gold and silver zari and also recognised as the queen of all the sarees. It is evident from the available fact that even during the Vedic period there was wide use of sarees for different purposes. These handloom products reach to its peak with the coming of Mughals in India. Due to the long history of colonization handloom products lost its glory during the British regime. With the main objective of analysing and identifying the factors responsible for the continuous decline in the living condition of handloom bunkars, the study has been undertaken. Based on the global experience, observation, analysis about the handloom bunkars and local perceptions about them a household survey was conducted in December 2016 in Bazarhdeeha handloom cluster of Varanasi, Uttar Pradesh. Primary data has been tabulated and appropriate statistical method has been used. Arc GIS 10.3 version software has been used to digitize Varanasi map. It was noted that certain government schemes have an adverse impact on the livelihood of bunkars. Though the Geographical Indication tag has been given to Banarasi saree in 2009 but, it didn't provide any kind of relief to the handloom bunkars of Varanasi. It was also suggested that the strong political will help in the revival of handloom cottage industry of Varanasi. Apart from this linking of handloom cottage industry with the online will result in the comprehensive growth of this sector.