Lok Sabha Question No. 939 (UNSTARRED), answered on 2019-06-27
Subject: Promotion of Khadi Brand
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Gitaben Vajesingbhai Rathva

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

## LOK SABHA UNSTARRED QUESTIONNO. 939 TO BE ANSWERED ON 27.06.2019

## PROMOTION OF KHADI BRAND

## 939. SHRIMATI RATHVA GITABEN VAJESINGBHAI:

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

- (a) the efforts that the Ministry is making to brand Khadi all over the world;
- (b) whether  some  countries  such  as  Germany  are  using  Khadi  as  a  brand  and  selling  their products;
- (c) if so, the details thereof and the steps taken by the Ministry to stop such things; and
- (d) whether Khadi and Village Industries Commission (KVIC) has taken up any special scheme after Government came to power to brand and sell Khadi all over the world and if so, the details thereof?

## ANSWER

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

- (a): Yes,  Sir.  Government in the Ministry of Micro, Small and Medium Enterprises, through Khadi and Village Industries Commission (KVIC), has taken various initiatives to make Khadi an international brand.  Details of the initiatives taken is placed at Annexure-I.
- (b): Yes, Sir.  In Germany, the Best Natural Products (BNP) has obtained registration of Trade Mark  'Khadi'  under  classes-3,21,31  from  the  European  Union  Intellectual  Property  Office (EUIPO) and selling the products like soap, perfumeries, hair oils etc.
- (c): The  following  steps  were  taken  by  the  Government  to  prevent/misuse  of  Trade  Mark  of 'Khadi':
- i) KVIC had filed invalidation application against BNP and filed appeals in the matter; but it could not succeed.
- ii) KVIC has filed application for revocation of the Trade Mark 'KHADI' registered by BNP on the ground of non-use.   The proceedings are pending.
- iii) KVIC is also proposing to negotiate with BNP for assignment of its registered Trade Mark 'KHADI' in favour of KVIC.
- iv) Further, KVIC also filed fresh applications in EU under 13 classes i.e. 1, 3, 5, 16, 18, 20, 21, 23, 24, 25, 26, 27, 35.
- (d): No,  Sir; however, KVIC has already obtained registration under Trade Mark 'KHADI' in 5 countries of the world viz. Germany, UK, Australia, Russia and China.

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## Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 939 for answer on 27.06.2019

## Following are the initiatives taken to make Khadi an international brand:

1. To ensure genuineness of Khadi 'Khadi Mark' has been notified by Government of India.
2. Ministry of Commerce and Industry, Govt. of India has extended KVIC, the status of Deemed EPC, for supporting promotion of Khadi and Village Industries products in international market. 1088 Khadi & Village Industries Institutions and REGP/PMEGP Units have taken its membership to enter the field of export. KVIC through its assisted institutions and units participates in various international exhibitions:
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 invigorating business opportunities in the overseas market by conducting exhibitions and workshops for Khadi Institutions.
4. Tie up arrangements for bringing out innovative export quality product designs with NIFT, etc.
5. KVIC participated/Exhibited/Promoted Khadi products on the occasion of 72 nd Independence Day celebrations on 15 th August 2018 in 10 Indian Consulates abroad.
6. Exhibited/Promoted Khadi products under an activity of 'Global Khadi' on the    celebration of 150 th Birth Anniversary of Mahatma Gandhi in 57 Indian Embassies/ Missions abroad.
7. To  unique  identity  of  'Khadi',  a  separate  HS  code  for  22  items  of  Khadi  product  is  also requested from the Ministry of Commerce for recognizing the potential of export of KVI products.
8. Participated  in  International  Exhibition  in  St.  Petersburg  (Russia)  organized  by  ITPO  from 12-14  March,  2019  with  ten  KVI  Institutions/  Units  from  Rajasthan,  Himachal  Pradesh,  West Bengal,  Karnataka,  Gujarat  and  Kerala.  The  Exhibition  provided  an  opportunity  and  strong platform to showcase quality of KVI products.
9. 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.
10. Financial  support  under  International  Cooperation  (IC)  Scheme  of  Ministry  of  MSMEfor Technology infusion and/or up-gradation of MSMEs, their modernization and promotion of their exports through participation in international exhibitions/trade fairs etc.
- 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  lakh  or  actual  rent  paid, whichever is lower.
- c. US Dollar 150 per day Duty allowance.
11. 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 for KVIs                                                                                                                                                |
|----------|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)       | Space Rent       | 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         | 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) |