Lok Sabha Question No. 3094 (UNSTARRED), answered on 2018-08-06
Subject: Export of Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: BHOLA SINGH, PREM SINGH CHANDUMAJRA, ANOOP MISHRA

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3094

## TO BE ANSWERED ON 06.08.2018

## EXPORT OF KHADI PRODUCTS

3094.

SHRI BHOLA SINGH: PROF. PREM SINGH CHANDUMAJRA: SHRI ANOOP MISHRA:

Will  the  Minister  of  MICRO,  SMALL  AND  MEDIUM  ENTERPRISES  be pleased to state:

- (a)   whether the sale of khadi products have shown a remarkable growth during the current year in the country;
- (b) if so, the details thereof indicating the production, sale and export of khadi products during the last three years and the current year; and
- (c)   the steps being taken by the Government to promote khadi industry and to exploit/tap its export potential to the maximum?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): Yes,  Madam.  Sale of Khadi products have shown a remarkable growth during the year 2017-18 in the country.  It has increased from Rs.2146.60 crore to Rs. 2508.50 crore during 2017-18, which shows around 16.86% growth.
- (b): Performance of production, sale and export of Khadi products during the last three years and the current year is as follows:

(Rs. in

## crore)

| Khadi products   | 2015-16   | 2016-17   | 2017-18 (P)   | 2018-19 (P) (upto 30.6.2018)   |
|------------------|-----------|-----------|---------------|--------------------------------|
| Production       | 1158.44*  | 1520.83 # | 1624.86 #     | 305.39 #                       |
| Sales            | 1663.98*  | 2146.60 # | 2508.50 #     | 231.05 #                       |
| Export           | 0.11      | 3.01      | 3.08          | 0.77                           |

P-Provisional  *includes Khadi, Polyvastra   #includes Khadi, Polyvastra

(c): Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the following schemes/ programmes through Khadi and Village Industries Commission (KVIC) to promote Khadi & Village Industry:

## i) Khadi Grant:

1. Strengthening  Infrastructure  of  existing  Weak  Khadi  Institutions  and Assistance  for  Marketing  Infrastructure  provides  for  renovation  of khadi sales outlets and providing assistance for strengthening infrastructure of existing weak selected institutions
2. Workshed  Scheme  for  Khadi  Artisans  for  providing  assistance  for construction of worksheds.
3. ii)  Market Promotion Development Assistance (MPDA) is a unified scheme by  merging  Market  Development  Assistance,  Publicity,  Marketing  and Market  Promotion.    A  new  component  for  setting  up  of  Marketing Complexes/Khadi  Plazas  has  been  added  to  expand  the  marketing network of Khadi & VI products. Under the Modified MDA (MMDA), financial  assistance  at  30%  of  the  Prime  Cost,  is  distributed  amongst Producing  Institutions  (40%),  Selling  Institutions  (20%)  and  Artisans (40%).
4. iii)  Interest Subsidy Eligibility Certificate (ISEC) Scheme provides credit at concessional rate of interest through Banks in which the institutions are required to pay interest of only 4%, any interest charged by banks over 4% will be paid by the Govt. of India through KVIC.
5. iv) Khadi Reform and Development Programme  (KRDP)  has  been implemented with the financial and technical assistance of Asian Development Bank (ADB) to revitalize the khadi  sector with  enhanced sustainability  of  khadi, increased  incomes  and  employment for  spinners and  weavers,  increased  artisans'  welfare  and  to  achieve  synergy  with village industries. Khadi Reform Package envisages reform support in the following  areas:  (i)  Artisan  Earnings  and  Empowerment,  (ii)  Direct Reform Assistance to 400 Khadi Institutions & (iii) Implementation of a well-knit MIS.

Initiatives/steps  taken  by  the  Government  to  promote  the  export  of  Khadi products is placed at Annexure-I.

Annexure-I referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 3094 for answer on 06.08.2018

## Initiatives/steps taken to promote the exports of KVI products

1. Assistance  would  be  provided  under  the  MPDA  Scheme  to  the  eligible  Khadi  and Village Industries (KVI) Institutions for participation in International Exhibitions/Trade Fairs held  in  foreign  countries  in  order  to  showcase  KVI  products  to  foreign  countries,  access international buyers and sellers and forge business alliances, etc.

The eligible items for such participation and the scale of assistance would be as under:

| S. No.   | Eligible items   | Scale of assistance                                                                                                                                                                    |
|----------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)       | Space Rent       | For KVIs - 100% of the space rent subject to a maximum of Rs.1.25 lakh or actual rent paid, whichever is lower (for one representative from each participating enterprise)             |
| ii)      | Air Fare         | For KVIs - 100% of the Economy Class air fare subject to a maximum of Rs.1.00 lakh or actual fare paid, whichever is lower (for one representative from each participating enterprise) |

2. Participation  in  domestic  international  exhibitions  at  State  and  National  levels wherein KVIs are allowed to participate and market their products.
3. Assistance is also provided to Exporters participating in International Trade Fairs held in  India  like  India  International  Trade  Fair  (IITF)  New  Delhi  where  stall  rentals  are subsidized for the exporting institutions.
4. Participation  in  International  Trade  Fairs  through  ITPO,  New  Delhi  where  KVI products find wide exposure to International Trade Delegation, Importers, Overseas Buyers, Franchisees, Branded Merchandise Outlets, Retailers, Malls, and Shopping Centres etc.
5. Tie up arrangements for bringing out innovative export quality product designs with NIFT.
6. Tie  up  arrangement  with  premier  export  institutions  like  Directorate  General  of Foreign Trade (DGFT), Federation of Indian Export Organization (FIEO), CII and Federation of Indian Chambers of Commerce & Industry (FICCI).
7. Tie  up  arrangement  with  premier  institutions  like  Federation  of  Indian  Export Organization  (FIEO),  World  Trade  Centre  (WTC),  Indian  Trade  Promotion  Organization (ITPO), Trade Promotion Council of India etc., for invigorating business opportunities in the overseas market by conducting exhibitions and workshops for Khadi Institutions. Arranging training  in  Export  Procedure  and  Documentation  for  Export  Oriented  Units  (EOUs), Institutions and Entrepreneurs in the KVI Sector through these institutions.
8. A MoU was signed between KVIC and Aditya Birla Fashion & Retail Ltd. (ABFRL), Raymond and Arvind Mills for sale of Khadi fabric in country and abroad.
9. Tie  up  with  e-Commerce  platform  for  on-line  marketing  through  e-Commerce companies like PayTM, Aaarmart.
10. KVIC has applied to register 'Khadi' as a word mark and 'Khadi India' as a Trade mark in 27 classes for various products among 45 classes listed out in the IPR Act at National Level as well as has filed an online application for registering 'Khadi' as a trade mark under International Bureau in European Union and other countries under 16 different class.