Khadi & Village Industries: From Tradition to Enterprise

Key Highlights:

• The Khadi and Village Industries (KVI) sector achieved historic sales of ₹1.87 lakh crore in 2025-26, marking a 501% growth since 2013-14.
• Production in the sector increased by 380% to ₹1,25,296 crore, and employment grew by 56% to 2.04 crore.
• Artisan remuneration rose by approximately 275%, from ₹4 per hank in 2013-14 to ₹15 per hank currently.
• Khadi and Village Industries Commission (KVIC), a statutory body under the Khadi and Village Industries Commission Act, 1956, is central to this transformation.
• The sector's growth aligns with the "Vocal for Local" and "Atmanirbhar Bharat" initiatives, fostering rural enterprises.
• The Prime Minister’s Employment Generation Programme (PMEGP) has generated nearly 97.95 lakh employment opportunities through KVIC since March 2008.

Detailed Insights:

• KVIC provides comprehensive support including training, raw materials, marketing, research, and skill development for village industries.
• The annual Khadi Mahotsav, held from October 2 to 31, sensitizes youth and encourages the public to purchase Khadi and local products.
• Women constitute over 80% of the approximately five lakh artisans in the Khadi sector, with 59% of trainees in 2025-26 being women.
• The Gramodyog Vikas Yojana empowers artisans by distributing modern machines, toolkits, and equipment, with over 3.23 lakh distributed to date.
• The Khadi Vikas Yojana assists Khadi institutions in product improvement and market responsiveness, disbursing ₹245 crore in 2024-25.
• The Interest Subsidy Eligibility Certificate Scheme enables eligible Khadi institutions to access credit at a concessional interest rate of 4% per annum.
• The Workshed Scheme improves production spaces for artisans, benefiting 1,309 artisans in 2025-26.
• KVIC expands market access through an online Khadi India store, departmental outlets, and participation in trade fairs.

Key Concepts Involved:

• Khadi and Village Industries Commission (KVIC): A statutory body established in 1956 to plan, promote, facilitate, and assist village industries.
• Vocal for Local: A government initiative encouraging citizens to buy locally manufactured products to boost domestic industries.
• Atmanirbhar Bharat: A vision for a self-reliant India, promoting economic growth, local manufacturing, and global competitiveness.
• Prime Minister’s Employment Generation Programme (PMEGP): A credit-linked subsidy scheme for establishing new micro-enterprises in non-farm sectors.