Khadi and Village Industries Sector Overview
The Ministry of Micro, Small & Medium Enterprises released a comprehensive report on the Khadi and Village Industries (KVI) sector, highlighting its significant role in promoting rural livelihoods, generating employment, and supporting sustainable development. The sector employs approximately 500,000 artisans, with around 80% being women, providing substantial opportunities for women's economic empowerment and financial independence across various domains including Agarbatti, Handmade Paper, Honey Mission, and Service Industries.
Employment and Income Generation Initiatives
The Government supports employment generation through multiple schemes including Khadi Vikas Yojana, Gramodyog Vikas Yojana, and PMEGP. These initiatives provide financial support, working capital facilitation, quality raw materials, training, toolkits, wage support, marketing interventions, promotion of digital payments, and social security measures. An evaluation study conducted by EDII, Ahmedabad, reported that more than 75% of artisans across these schemes experienced a measurable increase in income following the interventions. Specific measures include the enhancement of spinning and weaving wages effective from April 2025, support for improved working tools and infrastructure, and strengthened marketing interventions.
Product Development and Market Expansion
The Khadi sector has evolved significantly beyond traditional products, expanding into contemporary fashion and lifestyle categories. New product categories include Khadi denim, designer saris, bridal wear, contemporary shirts, and trousers. The Centre of Excellence for Khadi at NIFT, Delhi has developed 2,129 Khadi design collections across multiple categories. The launch of Navyug Khadi introduced 710 new products, while the wellness and yoga wear collection 'Svadha' has further contributed to the contemporary positioning of Khadi. The GI tag awarded to Ponduru Khadi is expected to enhance value realization, with distinctive products like Bharat Kasturi Cotton, Bengal Muslin, and naturally colored cotton products being showcased at the inaugural BRICS MSME Forum in Agra.
Export Potential and International Exposure
With growing global demand for handmade, traceable, natural, and environmentally responsible products, Khadi offers significant export potential. The Khadi and Village Industries Commission (KVIC) has registered as an Export Promotion Council (EPC) on the Trade Portal of the Consulate General of India in New York and has initiated efforts to facilitate greater international exposure for Khadi institutions.
Technology Upgradation and Sustainability Initiatives
Technology upgradation and quality enhancement are being pursued alongside preservation of traditional practices. KVIC's Central Sliver Plants are being modernized, with the plants at Chittadurga, Karnataka, and Kuttur, Kerala, having completed modernization and becoming operational. The Chittadurga plant utilizes solar energy for 50% of its requirement, while wind power is being explored to further strengthen environmental sustainability. Technology upgradation of Khadi institutions and technology-based Common Facility Centres are also proposed to strengthen Village Industries clusters. KVIC, in collaboration with ICAR-CIRCOT, is exploring initiatives for developing naturally colored cotton varieties aimed at reducing water use, chemical pollution, and energy consumption associated with conventional dyeing processes.
Environmental Sustainability and SDG Alignment
Khadi's production process is inherently energy-efficient and water-efficient, based on natural fibers and colors, contributing to a lower environmental footprint. The sector supports the objectives of SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). Khadi also offers potential for recycling and upcycling through hand spinning, including the conversion of fibers and filaments unsuitable for mechanized spinning, creating additional employment opportunities while promoting circular economy principles.