Khadi and Village Industries Commission

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The Ministry of Micro, Small, and Medium Enterprises (MSMEs) recently announced that the turnover of Khadi and Village Industries (KVI) exceeded Rs 1.7 lakh crore in the financial year 2025 (FY24-25).

About the Khadi and Village Industries Commission (KVIC)

The Khadi and Village Industries Commission (KVIC) is a statutory body established by the Khadi and Village Industries Commission Act of 1956. It operates as the central organization under the Ministry of Micro, Small, and Medium Enterprises, overseeing the development of Khadi and village industries in India.

KVIC is responsible for planning, promoting, organizing, and implementing programs aimed at the development of Khadi and other village industries in rural areas. It works in collaboration with various agencies involved in rural development.

At the state level, Khadi & Village Industries Boards have been established to implement KVIC’s schemes within their respective regions effectively.

Key Objectives of KVIC

• Primary Objective: To foster a thriving rural community.
• Social Objective: To generate employment opportunities in rural areas.
• Economic Objective: To produce marketable products.
• Wider Objective: To encourage self-sufficiency among economically disadvantaged groups.

Functions of the KVIC

• Raw Material Supply: To build a reserve of raw materials and tools for producers.
• Common Service Facilities: To create shared facilities for processing raw materials and marketing KVI products.
• Marketing & Sales: To boost the sale and promotion of Khadi and other village industry products.
• Research & Development: To promote research in production methods and equipment used in Khadi and village industries.
• Financial Assistance: To offer financial support to institutions and individuals for developing Khadi and village industries, including design and technical guidance.
• Product Standards: To ensure product authenticity and set quality standards for Khadi and Village Industry goods.

Key KVIC Schemes

• Prime Minister’s Employment Generation Programme (PMEGP)
• Market Promotion Development Assistance (MPDA)
• Interest Subsidy Eligibility Certificate (ISEC)
• Workshed Scheme for Khadi Artisans
• Strengthening Infrastructure of Weakened Khadi Institutions and Marketing Infrastructure
• Khadi Reform and Development Programme (KRDP)
• Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
• Honey Mission