The Study By Manikant Singh
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India’s Khadi Industry

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India’s Khadi Industry

Context:

National Handloom Day is commemorated annually on August 7. On this occasion, it is pertinent to understand the rich heritage of Khadi textiles in India.

 

About Khadi

  • Khadi, derived from the term “khaddar,” is a hand-spun and hand-woven fabric primarily from India. It is made from natural fibres such as cotton, silk, or wool, spun into yarn on a spinning wheel called a charkha.
  • It has deep historical roots, dating back to the Indus Valley Civilization
  • It gained prominence during India’s independence movement, where Mahatma Gandhi promoted it as a symbol of self-reliance and resistance against British colonial rule, representing the Swadeshi movement.
  • Post-independence, the Indian government established the All India Khadi and Village Industries Board to promote khadi and support rural artisans. 

 

Khadi and Village Industries Commission (KVIC): 

  • It is a statutory body established by Khadi and Village Industries Commission Act of 1956.
  • Ministry: Ministry of Micro, Small and Medium Enterprises (MSME).
  • In April 1957, it took over the work of the former All India Khadi and Village Industries Board.
  • Objective: Providing employment, producing marketable goods, fostering self-reliance and building a strong rural community spirit
  • Functions: It is responsible for planning, promoting, organising, and implementing programs aimed at developing Khadi and other village industries in rural areas. 

 

Strengthening Traditional Industry of Khadi in India:

 

Economic Development

  • KVIC surpassed turnover of leading Fast-Moving Consumer Goods (FMCG) companies in India, achieving a remarkable turnover of Rs 1.34 lakh crore in 2022-23. 
  • From 2013-14 to 2022-23, the sale of indigenous Khadi products made by artisans grew by an unprecedented 332%. 
  • Production of Khadi clothes rose from Rs 811 crore in 2013-14 to Rs 2916 crore in 2022-23, marking a 260% increase
  • Demand for Khadi clothes also surged, with sales jumping from Rs 1081.04 crore in 2013-14 to Rs 5942.93 crore in 2022-23, an increase of 450%.
  • Khadi artisans have benefited from this increase in production and sales, with their remuneration rising by over 150% since 2013-14. 

 

Strengthening Rural Industries and Community Building: 

  • Financial assistance through Direct Benefit Transfer, infrastructure modernisation, digitisation, and advancements in R&D have bolstered KVIs.
  • KVIC launched eKhadiIndia.com in 2021, showcasing over 50,000 products to support the rural economy. 
  • The “Vocal for Local” initiative has further increased Khadi’s popularity both domestically and internationally.

 

Boosting Employment Opportunities

  • KVIC focused on sustainable employment, creating 9.5 lakh rural jobs in 2022-23, up from 5.6 lakh in 2013-14. 
  • Through the Prime Minister’s Employment Generation Programme (PMEGP), over 80% of units are in rural areas, with more than 50% led by SC, ST, and women entrepreneurs, boosting women’s empowerment. 

 

Schemes under the KVIC:

  • Prime Minister’s Employment Generation Programme (PMEGP): A credit linked subsidy scheme, for establishing new micro, medium and small enterprises. 
  • Workshed Scheme for Khadi Artisans: grants financial assistance for construction of workshed to khadi artisans belonging to BPL category. 
  • Khadi Reform and Development Programme (KRDP): Aims to provide earning opportunity to rural artisans in their household at minimal investment
    •  Market Promotion Development Assistance (MPDA)
    • Interest Subsidy Eligibility Certificate (ISEC)
    • Scheme of Fund for Regeneration of Traditional Industries (SFURTI): Provide need-based assistance for the replacement of production tools, product development, setting up of common facility centres (CFC), capacity building etc. 
  • Khadi Gramodyog Vikas Yojana (KGVY):It is an umbrella scheme with two major components for the development of Khadi and Village Industries (KVI) programmes:
  • Khadi Vikas Yojana(KVY): Wherein the activities carried out under Khadi are grouped and
  • Gramodyog Vikas Yojana(GVY): Wherein the activities carried out under different village industries are grouped.
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