Lok Sabha Question No. 765 (UNSTARRED), answered on 2020-09-17
Subject: Promotion and Export of KVIC Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Vijay Kumar, Bheemrao Baswanthrao Patil

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 765

TO BE ANSWERED ON 17.09.2020

## PROMOTION AND EXPORT OF KVIC PRODUCTS

## 765.   SHRI VIJAY KUMAR:

SHRI B. B. PATIL:

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

- (a) whether the Government proposes to promote and export products manufactured in villages through Khadi and Village Industries Commission (KVIC);
- (b) if so, the details thereof;
- (c) whether the KVIC has accorded the status of Export Promotion Council to facilitate it;
- (d) if so, the details thereof;
- (e) whether  new  employment  opportunities  have  been  generated  for  women  and  rural people as a result; and
- (f) if  so,  the  details of the employment opportunities generated during each of the last three years, State-wise?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

- (a) & (b): Ministry of Micro, Small and Medium Enterprises (MSME), through Khadi and Village Industries Commission (KVIC) is engaged in promotion of Khadi and Village Industries (KVI) activities in the country. KVIC, however, is not directly involved in export of Khadi and Village Industries (KVI) products.  KVI   institutions/units, assisted through implementation  of  various  KVI  Schemes,  export  their  products  directly or  through Merchant/ Agencies. The steps/initiatives taken by the Government to promote and export products manufactured in villages under KVIC is placed at Annexure-I.
- (c) & (d): Ministry  of  Commerce  &  Industry,  Government  of  India  has  extended Deemed EPC Status  to  KVIC  during  2006  for  promotion  of  KVI  products  in  the  global market.  Accordingly,  around  1089  KVI  Institutions  and  PMEGP/REGP  Units  have  been enrolled as member to enter the field of Export.
- (e) & (f): Information relating to employment generation due to export of KVI products is not maintained as KVIC is not directly engaged in export of these products.

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## Annexure-I

## Annexure-I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No.765 for answer on 17.09.2020

The steps/initiatives taken by the Government to promote and export products manufactured in villages under KVIC are as follows:

1. To ensure  genuineness  of  Khadi  'Khadi  Mark'  has  been  notified  by  Government  of India.
2. KVIC  has  been  granted  the  status  of  Deemed  EPC  by  Ministry  of  Commerce  & Industry  in  December,  2006.  KVIC  is  also  extended  assistance  on  the  pattern  of  an umbrella EPC like FIEO/ITPO/CII/FICCI.
3. 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 revitalizing business opportunities  in  the  overseas  market  by  conducting  exhibitions  and  workshops  for Khadi Institutions.
4. KVIC participated with all States KVI Institutions/units in the International Exhibitions organised  by  different  organisations  like  ITPO,  FIEO,  TEXPROCIL  and  other  Govt. bodies  in  different  countries.  The  Exhibition  provided  an  opportunity  and  strong platform to showcase quality KVI products.
5. KVIC has been making persistent efforts for exporting KVI products produced by KVI institutions/units  mainly  in  USA,  European  Union,  South  East  Asia,  Gulf  Countries, UAE, Dubai etc.
6. On  occasion  of  150 th Birth  Anniversary  celebration  of  Mahatma  Gandhi,  KVIC Exhibited/displayed Khadi products under an activity of 'Global Khadi' in 67 Indian Embassies/ Missions abroad.
7. Government has issued Harmonized System (HS) code to categorize 11 Khadi products in export and separate tariff lines for these have been created. Definition of Khadi also been  included  in  the  supplementary  notes  of  the  Customs  tariff,  w.e.f.  1.11.2019  on tentative basis. HS code is a unique identity of product ID internationally accepted.
8. Export  Workshop,  Import  Export  procedure  training,  Industry  specific  packaging training  at  IIP  Mumbai,  ISO-9000-14000  Training  at  IIQM  Jaipur,  Industry  specific Design development training at IID Ahmedabad to KVI Existing Beneficiaries is to be provided to promoted export of KVI product.
9. KVIC arranged Global Branding Program in association with CII MSME Members to promote Khadi India on Global Platform.
10. KVIC  engaged  fashion  designer  of  national  and  international  repute  for  Fashion Designing to make Khadi products more competitive and appealing in the domestic as well as overseas market segment.
11. Financial support is provided under International Cooperation (IC) Scheme of Ministry of MSME  for Technology infusion and /or up-gradation of MSMEs, their modernization and promotion of their exports through participation in international exhibitions/trade fairs etc. Scale of assistance under IC scheme would be as under:
12. Marketing and Promotion Calendar for Social Media activities

| S. No.   | Scale of Assistance                                                                                             |
|----------|-----------------------------------------------------------------------------------------------------------------|
| (a)      | To and Fro economy class air fare subject to a maximum of Rs.1.50 lakh or actual fare paid, whichever is lower. |
| (b)      | 100% of the space rent subject to a maximum of Rs.1.00 lakhs or actual rent paid, whichever is lower.           |
| (c)      | US Dollar 150 per day Duty allowance.                                                                           |