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Reduction of Sales, Production and Job Opportunities in Khadi Sector 

Sales, production and job opportunities in Khadi sector are showing an increasing trend since the last three years:

(Rs. in crore and Employment in lakh persons)

Sl.No. Particulars 2015-16 2016-17 2017-18
A Khadi (incl.Polyvastra) 1158.44 1520.83 1626.66
B Village Industries 33331.78 41110.26 46454.75
Total-I 34490.22 42631.09 48081.41
A Khadi (incl.Polyvastra) 1663.98 2146.60 2510.21
B Village Industries 40230.58 49991.61 56672.22
Total-II 41894.56 52138.21 59182.43
A Khadi (incl.Polyvastra) 11.57 4.56* 4.65*
B Village Industries 126.26 131.84 135.71
Total-III 137.83 136.40 140.36

*Aadhaar seeded

Government has been implementing a number of schemes for the holistic development, promotion of Khadi and to modernize Khadi Sector through Khadi and Village Industries Commission (KVIC), which include:

(i)Khadi Grant:

  1. Strengthening Infrastructure of existing Weak Khadi Institutions and Assistance for Marketing Infrastructure provides for renovation of khadi sales outlets and providing assistance for strengthening infrastructure of existing weak selected institutions
  2. Workshed Scheme for Khadi Artisans for providing assistance for construction of  worksheds.
  3. ii) Market Promotion Development Assistance (MPDA)– A unified scheme by merging Market Development Assistance, Publicity, Marketing and Market Promotion.  A new component for Infrastructure namely setting up of Marketing Complexes /Khadi Plazas has been added to expand the marketing network of Khadi & VI products. Under the Modified Market Development Assistance (MMDA) financial assistance at 30% of the Prime Cost, is distributed amongst Producing Institutions (40%), Selling Institutions (20%) and Artisans (40%).

iii) Khadi Reform and Development Programme (KRDP)aims to revitalize the khadi sector with enhanced sustainability of khadi, increased incomes and employment for spinners and weavers, increased artisans’ welfare and to achieve synergy with village industries. Under KRDP, restructured amount of US$ 105 million has been negotiated with Asian Development Bank (ADB) and funds are being provided to the Government of India to be released to KVIC as ‘grants-in-aid’ under budgetary allocation through the Ministry of MSME. Khadi Reform Package envisages reform support in the following areas: (i) Artisan Earnings and Empowerment, (ii) Direct Reform Assistance to 400 Khadi Institutions & (iii) Implementation of a well-knit Monitoring Information System (MIS).

In order to increase setting up of more Khadi units by entrepreneurs and also by institutions, KVIC launched an exclusive online portal called “Khadi Institutions Registration and Certification Sewa (KIRCS)” for filing application for registration of new Khadi units to undertake Khadi activities. 371 number of ‘Khadi Certificates’ have been issued to new Khadi Institutions to undertake Khadi programme during the last three years. Though no new Khadi Institution formed in Kerala State during 2017-18, there are already 29 Khadi Institutions functional in Kerala.

Following are the initiatives taken to promote and modernize Khadi sector:

  1. To ensure genuineness of Khadi “Khadi Mark” has been notified by Government of India.
  2. Ministry of Commerce and Industry, Govt. of India has extended KVIC, the status of Deemed EPC, for supporting promotion of Khadi and Village Industries products in international market. 1088 Khadi & Village Industries Institutions and REGP/PMEGP Units have taken its membership to enter the field of export. KVIC through its assisted institutions and units participates in various international exhibitions:
  3. Tie up arrangement with premier institutions like Federation of Indian Export Organization (FIEO), World Trade Centre (WTC), Indian Trade Promotion Organization (ITPO), Trade Promotion Council of India etc., for invigorating business opportunities in the overseas market by conducting exhibitions and workshops for Khadi Institutions.
  4. KVIC engaged fashion designer of national and international repute for Fashion Designing to make Khadi products more competitive and appealing in the domestic as well as overseas market segment.
  5. Assistance would be provided under the MPDA Scheme to the eligible Khadi and Village Industries (KVI) Institutions for participation in International Exhibitions/Trade Fairs held in foreign countries in order to showcase KVI products to foreign countries, access international buyers and sellers and forge business alliances, etc.

The eligible items for such participation and the scale of assistance would be as under:

S. No. Eligible items Scale of assistance for KVIs
i) Space Rent 100% of the space rent subject to a maximum of Rs.1.25 lakh or actual rent paid, whichever is lower (for one representative from each participating enterprise)
ii) Air Fare 100% of the Economy Class air fare subject to a maximum of Rs.1.00 lakh or actual fare paid, whichever is lower (for one representative from each participating enterprise)


  1. To modernize the Khadi products, Khadi and Village Industries Commission Signed MOU with NIFT for design development and developing Khadi fashion garments and to promote Khadi as a fashion fabric of India.
  2. KVIC invited Textile Giants for marketing convergence and signed MoUs with Corporates like Raymond, Arvind Mills, Aditya Birla Fashion and Retail Ltd. (ABFRL) for developing and promoting sale of Khadi through their outlets.
  3. KVIC established linkages with M/s. Globus, M/s. Apna Bazar and M/s. Cotton Bazar for setting up “KHADI KORNER” a Shop-In-Shop concept in their stores. Khadi Korner has already become operational at NOIDA, Ahmedabad and Mumbai.
  4. In order to make Khadi easily available including designer products to its patrons, KVIC has taken the initiative to open premier Khadi Showrooms known as ‘Khadi Lounge’ such types of lounges have been opened at Jaipur, Mumbai and New Delhi and Bhopal.
  5. KVIC participated/Exhibited/Promoted Khadi products on the occasion of 72nd Independence Day celebrations on 15th August 2018 in 10 Indian Consulates abroad.
  6. KVIC Exhibiting/Promoting Khadi products under activity of “Global Khadi” on the eve of celebration of 150th Birth Anniversary of Mahatma Gandhi and shipped the Khadi products to 46 Indian Embassies/Missions abroad.


State-wise details of new Khadi Certificates issued from 2015-16 to 2017-18

Sl. No. Name of the state Cumulative total of 3 years
1 Uttar Pradesh 98
2 Uttarakhand 27
3 Raipur 3
4 West Bengal 84
5 Odisha 19
6 Bihar 13
7 Jharkhand 3
8 Andhra Pradesh 53
9 Karnataka 10
10 Telangana 4
11 Tamil Nadu 0
12 Kerala 0
13 Jammu & Kashmir 10
14 Haryana 18
15 Rajasthan 2
16 Punjab 4
17 Rajasthan 2
18 Gujarat 16
19 Maharashtra 5
20 Assam 0
Total 371


This information was given by the Minister of State for Micro, Small and Medium Enterprises (I/C), Giriraj Singh, in a written reply in the Rajya

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