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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
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- 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.
