Lok Sabha Question No. 829 (UNSTARRED), answered on 2016-11-21
Subject: Promotion of Khadi in Foreign Countries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAMA DEVI, PRATAPRAO GANPATRAO JADHAV

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 829 TO BE ANSWERED ON 21.11.2016

## PROMOTION OF KHADI IN FIREIGN COUNTRIES

## 829. SHRIMATI  RAMA DEVI: SHRI  PRATAPRAO JADHAV:

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

- (a) whether  the  Government  has  made  any  effort  to  find  out/explore  Khadi  market  in foreign countries;
- (b) if so, the details and the outcome thereof;
- (c) the  further  action  plan  prepared  by  the  Government  on  the  basis  of  such  outcome; and
- (d) the  details  of  the  initiative  taken  by  the  Government  to  implement  the  said  action plan?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)&(b): Yes Madam. The Ministry of Commerce & Industry has given the status of deemed  Export  Promotion  Council  (EPC)  to  Khadi  and  Village  Industries  Commission (KVIC)  for  supporting  the  introduction  of  Khadi  &  Village  Industries  (KVI)  products  in international market.  1064 Khadi and Village Industries Institutions and Rural Employment Generation  Programme  (REGP)/Prime  Minister's  Employment  Generation  Programme (PMEGP) units have taken its membership to enter the field of export. The following steps have been taken to boost the export of Khadi and Village Industries product:

1. Participation  of  KVIC  in  India  International  Trade  Fair  (IITF)  organized  by ITPO.
2. Organizing Export promotion workshops.
3. Participation of KVIC in international exhibitions.
4. Assistance would be provided under the Market Promotion and Development Assistance  (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.1.00 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.1.50 lakh or actual fare paid, whichever is lower (for one representative from each participating enterprise) |

5. Export incentive of 5% of Freight On Board (FOB) value of direct export of Khadi products is provided to KVI institutions/units registered with KVIC. Besides, KVIC has also been focusing on quality participation in International Exhibitions and Buyer-Seller Meets abroad to tap new/emerging markets for Khadi products.
6. 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.
7. The export value of KVI items has been increasing over the last three years which can be seen from the below table:

| Year       |   Export value of KVI items (Rs. in crore) |
|------------|--------------------------------------------|
| 2013-14    |                                     114.58 |
| 2014-15    |                                     124.39 |
| 2015-16(P) |                                     139    |

(c)&(d): Further initiatives being taken by the government are as follows:

1. KVIC is participating in 36 th IITF-2016 organized by India Trade Promotion Organization (ITPO) at New Delhi from 14 - 27 November, 2016.
2. Two proposals suggesting participation in International Exhibitions to be held in Italy and Bahrain have been received from KVIC.
3. A list of International fairs to be participated by KVIC during the year 201617 is placed at Annexure-I.
4. KVIC  has  issued  a  Request  for  Proposal  (RFP)  for  conducting  Market Research Study through a professional agency for export of KVI products.

* * *

## Annexure-I referred to in reply to part (c)&(d) of the Lok Sabha Unstarred Question No. 829 for answer on 21.11.2016

## List of International Fairs to be participated by KVIC during the year 2016-17

|   Sl. No. | Name of the event/ show/ Exhibition                            | Schedule       | Product            | No. of Inst./units to participate     |
|-----------|----------------------------------------------------------------|----------------|--------------------|---------------------------------------|
|         1 | 37 th India Garment Fair, Osaka (Japan)                        | 22-22 Jul 2016 | Garments           | 5 KVI Institutions/REGP/ PMEGP Units  |
|         2 | Hong Kong Fashion Week                                         | Jul 2016       | Fashion Garments   | 5 KVI Institutions/REGP/ PMEGP Units  |
|         3 | India Sourcing Fair, St. Petersburg (Russia)                   | 21-23 Sep 2016 | Multi Products     | 5 KVI Institutions/REGP/ PMEGP Units  |
|         4 | International Sourcing Expo, Melbourne (Australia)             | Nov 2016       | Multi Products     | 5 KVI Institutions/REGP/ PMEGP Units  |
|         5 | SIAL Food Fare, Paris (France)                                 | 16-20 Oct 2016 | Food and Beverages | 5 KVI Institutions/REGP/ PMEGP Units  |
|         6 | Singapore International Indian Shopping Festival, Singapore    | Sep-Oct 2016   | Multi Products     | 5 KVI Institutions/REGP/ PMEGP Units  |
|         7 | AFL-Artigiano De Flera, Milan (Italy)                          | 5-13 Dec 2016  | Multi Products     | 10 KVI Institutions/REGP/ PMEGP Units |
|         8 | India Sourcing Fair, Sri Lanka                                 | Dec 2016       | Multi Products     | 10 KVI Institutions/REGP/ PMEGP Units |
|         9 | India Sourcing Fair, Bangladesh                                | Jan 2017       | Multi Products     | 10 KVI Institutions/REGP/ PMEGP Units |
|        10 | Spring Fair International, Birmingham, UK                      | 7-11 Feb 2017  | Multi Products     | 5 KVI Institutions/REGP/ PMEGP Units  |
|        11 | Addis Chamber International Trade Fair, Addis Ababa (Ethiopia) | Feb/Mar 2017   | Multi Products     | 5 KVI Institutions/REGP/ PMEGP Units  |