In India, small scale village handloom industries (e.g. Khadi, Silk and cotton, etc.) are decentralised yet possess a highly skilled labour force. This paper aims to provide a web-based solution to connect consumers, producers and designers by providing a common platform for sustainable textile production, design, marketing and consumption. ‘Digital distance’ is defined as the ease of access or connectivity between two node-actor systems on the internet-based virtual world. There is a vast digital distance between the consumers, designers and producers of village handloom industries which creates problems like lack of demand, low supply, extinction of traditional design art-forms, and risk of unemployment. Khadi-Kart, a web-based platform is designed to bridge this gap using a TRIZ-based design algorithm. Since the penetration of the internet in Indian society has seen a sharp rise, a web-based application is designed to cater to the needs of the consumer. The proposed system uses real-time connectivity and data processing, which help the producers connect with the consumers through a common platform. This method, in turn, helps the producers stay aware of upcoming trends and helps designers produce novel designs to support sustainable and intelligent manufacturing; thus, minimising their corresponding digital distances. Subsequently, the village economy is digitally connected to the global economy via e-commerce leading to job creation. This further decreases the environmental costs and provides ample social benefits to all the sub-systems.