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Khadi and Village Industries

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October 14, 2026

PIB Analysis

From Tradition to Enterprise

  • Khadi and Village Industries (KVI) are promoting rural entrepreneurship by connecting traditional skills and local resources with finance, technology, training and markets.
  • The sector supports the vision of Vocal for Local and Atmanirbhar Bharat by generating employment and encouraging self-reliance.
  • The annual Khadi Mahotsav (2–31 October) promotes Khadi and local products, particularly among youth.

https://static.pib.gov.in/WriteReadData/userfiles/image/2026/oct/image003_20261013111509_a19144.jpg

Khadi and Village Industries Commission (KVIC)

  • KVIC is a statutory body established under the Khadi and Village Industries Commission Act, 1956.
  • It plans, promotes, facilitates, organises and assists village industries through training, raw materials, marketing, research, quality improvement and technical support.

Performance of Khadi and Village Industries

  • Sales: Reached a historic ₹1.87 lakh crore in 2025–26, an increase of 501% over 2013–14.
  • Production: Increased by 380% to ₹1,25,296 crore.
  • Employment: Increased by 56% to 2.04 crore.
  • Artisan remuneration: Increased from ₹4 to ₹15 per hank, a rise of approximately 275%.
  • Women’s participation: Women constitute over 80% of approximately five lakh artisans in the Khadi sector.
  • One hank equals 840 yards of yarn and weighs one pound.

Major Initiatives for Artisans and Rural Enterprises

  • Skill Development: KVIC operates 35 departmental and non-departmental training centres offering training in beekeeping, bakery, agarbatti, candles, motor repairing and other activities.
    • In 2025–26, 79,682 trainees received training, including 47,382 women.
  • Prime Minister’s Employment Generation Programme (PMEGP): Since March 2008, it has provided employment opportunities to nearly 97.95 lakh people through KVIC.
  • Gramodyog Vikas Yojana: Provides modern machinery, toolkits and equipment. Over 3.23 lakh machines, toolkits and equipment had been distributed by May 2026.
  • Khadi Vikas Yojana: Supports product improvement, value addition and market-oriented pricing.
  • Under Modified Market Development Assistance, ₹245 crore was disbursed to 1,097 Khadi institutions in 2024–25, benefiting 1,45,484 artisans.
  • Interest Subsidy Eligibility Certificate Scheme: Enables eligible Khadi institutions to access credit at a concessional interest rate of 4% per annum.
  • Workshed Scheme: Improves production facilities and working conditions for artisans. Up to December 2025, 1,309 artisans benefited during 2025–26.

Rural Entrepreneurship and Success Stories

  • Punjab: An enterprise supported under PMEGP produces honey and cookies, employs around 200 workers and exports to 36 countries, with KVIC facilitating international market access.
  • Tamil Nadu: An agarbatti unit supported under Gramodyog Vikas Yojana uses vetiver to produce agarbatti, herbal products and other value-added goods.
  • Himachal Pradesh: A mono-carton manufacturing unit established under PMEGP with a project cost of ₹25 lakh records an annual turnover of around ₹45 lakh and employs 23 people.

Market Expansion and Global Reach

  • The online Khadi India store sells clothing, fabrics, groceries, beauty products, essential oils, perfumes and incense sticks.
  • KVIC operates eight departmental Khadi India outlets and 15 branches, while Khadi institutions run 8,035 sales outlets nationwide.
  • National, zonal, state and district exhibitions and domestic and international trade fairs expand market access.
  • Khadi has gained international visibility through platforms such as New Zealand Fashion Week 2026 and Lakmé Fashion Week 2025.

Conclusion

  • Khadi and Village Industries are evolving from traditional occupations into competitive rural enterprises.
  • Strengthening skills, affordable finance, modern technology, product quality and market linkages can further enhance artisan incomes, women’s empowerment, rural employment and India’s self-reliance.

Reference

PIB

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