Khadi and Village Industries Commission Empowering Rural Enterprise

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Key takeaways

The Khadi and Village Industries Commission (KVIC) is a statutory body established under the Khadi and Village Industries Commission Act, 1956 under the Ministry of Micro, Small and Medium Enterprises (MSME).
In 2025-26, sales of Khadi and village products touched ₹1.87 lakh crore, while production expanded by 380% to ₹1,25,296 crore relative to 2013-14.
Total employment in the sector expanded by 56% to reach 2.04 crore workers between 2013-14 and 2025-26.
Women account for over 80% of the 5 lakh artisans engaged in the Khadi sector, demonstrating its key role in boosting female workforce participation.
The Prime Minister's Employment Generation Programme (PMEGP) has generated job opportunities for 97.95 lakh people via KVIC since March 2008.

The Ministry of Micro, Small and Medium Enterprises (MSME) recently highlighted how rural industries convert local skills and resources into modern enterprises.
The Khadi and Village Industries Commission (KVIC) acts as the central agency driving this rural transformation.
The government supports these village enterprises through affordable loans, modern technology, and technical training.
The annual Khadi Mahotsav runs from 2nd October to 31st October to increase public support for native goods.
This national campaign builds awareness among young people and aligns with the Vocal for Local and Atmanirbhar Bharat visions.

The KVIC functions as a statutory body under the Ministry of Micro, Small and Medium Enterprises (MSME).
Parliament established this central agency by passing the Khadi and Village Industries Commission Act, 1956.
The core objective of the body involves driving industrial growth across rural areas and creating local jobs.
It strengthens village enterprises by offering financial grants, technical tools, and marketing assistance to traditional artisans.

The agency assists rural entrepreneurs in participating in foreign trade fairs to connect directly with foreign buyers.
It manages the official Khadi India digital store to sell clothing, groceries, cosmetics, essential oils, and incense online.
The physical sales network comprises 8 departmental outlets, 15 KVIC branches, and 8,035 sales outlets run by certified institutions.
Promoters display traditional fabrics at major events like New Zealand Fashion Week 2026 and Lakmé Fashion Week 2025 to target modern buyers.

Total sales of Khadi and village goods reached ₹1.87 lakh crore during 2025-26.
Production output grew by 380% to reach ₹1,25,296 crore in 2025-26 when compared to 2013-14 numbers.
Total employment in this sector increased by 56% to reach 2.04 crore workers between 2013-14 and 2025-26.
The commission manages 35 training centers that teach food processing, baking, beekeeping, agarbatti making, and vehicle repair.
Training programs skilled 79,682 individuals during 2025-26, with women making up 47,382 or roughly 59% of trainees.
Women represent over 80% of the 5 lakh artisans working in the Khadi sector, showing its strong support for female income generation.

The Prime Minister's Employment Generation Programme (PMEGP) helped create jobs for 97.95 lakh people through KVIC since March 2008.
The Gramodyog Vikas Yojana (GVY) provides artisans with modern equipment, distributing 37,769 toolkits in 2025-26 and over 3.23 lakh toolkits by May 2026.
The Khadi Vikas Yojana aids institutions with product design, quality improvements, and marketing support.
The Modified Market Development Assistance (MMDA) component under this scheme gave ₹245 crore to 1,097 Khadi institutions and helped 1,45,484 artisans in 2024-25.
The Interest Subsidy Eligibility Certificate Scheme enables eligible institutions to secure bank loans at a reduced interest rate of 4% per annum.
The Workshed Scheme grants financial assistance to build better, safer, and larger production spaces for local workers.

Upgrading traditional village production into market-ready businesses requires combining traditional craftsmanship with modern tools.
Expanding financial support and digital market linkages will secure sustainable income sources for rural families.
Strengthening this local industrial system supports gender equality, empowers rural women, and advances the Atmanirbhar Bharat mission.

Khadi refers to hand-spun and hand-woven cloth deeply linked to India's rural heritage and self-reliance history.
The Khadi and Village Industries Commission operates as a statutory body created under the Khadi and Village Industries Commission Act, 1956.
Main responsibilities of KVIC include providing worker training, supplying raw materials, backing marketing efforts, conducting research, and modernizing machinery.
The Khadi Mahotsav is an annual awareness campaign running from 2nd October to 31st October to encourage citizens to buy local goods.
Village industries generate rural jobs across sectors like textiles, food processing, honey collection, agarbatti creation, and handicraft making.