Lok Sabha Question No. 3184 (UNSTARRED), answered on 2020-03-12
Subject: Promotion of KVIC Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ajay Nishad

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

## LOK SABHA UNSTARRED QUESTION NO. 3184 TO BE ANSWERED ON 12.03.2020

## PROMOTION OF KVIC PRODUCTS

## 3184. SHRI AJAY NISHAD:

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 under Khadi and Village Industries Commission (KVIC);
- (b) if so, the details thereof;
- (c) whether the Government has accorded the status of Export Promotion Commission to KVIC to facilitate it;
- (d) if so, the details thereof;
- (e) whether  new  employment  opportunities  have  been  created  for  women  and  rural population as a result of it; and
- (f) if so, the details of the employment opportunities created during each of the last three years, State-wise?

## ANSWER

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

(a) & (b): The Government of India, through Khadi and Village Industries Commission (KVIC),  is  promoting  Khadi  and  Village  Industries  (KVI)  activities  in  the  country.  The entrepreneurs/ units assisted through implementation of various KVI Schemes by KVIC are engaged  in  production  and  sales  of  their  products.  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. The membership of KVI-EPC will facilitate provision of participation in International  Trade  Fairs/  Awareness  programme  etc.  Around  1088  KVI  Institutions  and PMEGP/REGP Units have been taken its membership to enter the field of Export.

(e): Ministry  of  MSME,  through  KVIC,  implements  a  flagship  scheme  viz.  Prime Minister's Employment Generation Programme (PMEGP) in the country. Under this Scheme, new employment opportunities created for women during last three years are as follows:

| Year    |   Estimated Women Employment under PMEGP |
|---------|------------------------------------------|
| 2016-17 |                                    83433 |
| 2017-18 |                                   125352 |
| 2018-19 |                                   203472 |

(f): State/UT-wise estimated employment created during the last three years in entire KVI Sector is placed at Annexure-II.

* * *

## Annexure-I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No.3184 for answer on 12.03.2020

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.                                                                           |

## Annexure-II referred to in reply to part (f) of the Lok Sabha Unstarred Question No.3184 for answer on 12.03.2020

State-wise employment created (estimated) during the last three years in entire KVI Sector

(Employment in lakh persons)

| Sl. No.   | State / Union Territory     |   2016-17 |   2017-18 |   2018-19 |
|-----------|-----------------------------|-----------|-----------|-----------|
| 1         | A &NIslands-UT              |      0.29 |      0.3  |      0.32 |
| 2         | Andhra Pradesh              |      5.63 |      5.77 |      5.96 |
| 3         | Arunachal Pradesh           |      0.17 |      0.18 |      0.2  |
| 4         | Assam                       |      5.07 |      5.26 |      5.57 |
| 5         | Bihar                       |      4.59 |      4.79 |      5.11 |
| 6         | Chandigarh-UT               |      0.24 |      0.24 |      0.25 |
| 7         | Chhattisgarh                |      1.72 |      1.85 |      2.11 |
| 8         | Delhi                       |      0.33 |      0.34 |      0.35 |
| 9         | Goa                         |      0.2  |      0.2  |      0.2  |
| 10        | Gujarat*                    |      2.72 |      2.86 |      3.19 |
| 11        | Haryana                     |      4.17 |      4.33 |      4.55 |
| 12        | Himachal Pradesh            |      2.77 |      2.82 |      2.93 |
| 13 14     | Jammu &Kashmir-UT Ladakh-UT |      3.27 |      3.56 |      4.2  |
| 15        | Jharkhand                   |      0.78 |      0.86 |      1.01 |
| 16        | Karnataka                   |      6.29 |      6.47 |      6.79 |
| 17        | Kerala                      |      5.83 |      5.93 |      6.16 |
| 18        | Lakshadweep-UT              |      0.01 |      0.01 |      0.01 |
| 19        | Madhya Pradesh              |      4.96 |      5.12 |      5.36 |
| 20        | Maharashtra**               |      9.88 |     10.15 |     10.63 |
| 21        | Manipur                     |      0.98 |      1.02 |      1.13 |
| 22        | Meghalaya                   |      0.58 |      0.58 |      0.61 |
| 23        | Mizoram                     |      1.15 |      1.17 |      1.27 |
| 24        | Nagaland                    |      0.8  |      0.87 |      0.99 |
| 25        | Odisha                      |      4.37 |      4.56 |      4.82 |
| 26        | Puducherry-UT               |      0.1  |      0.1  |      0.1  |
| 27        | Punjab                      |      4.03 |      4.16 |      4.3  |
| 28        | Rajasthan                   |     10.55 |     10.67 |     10.9  |
| 29        | Sikkim                      |      0.26 |      0.26 |      0.26 |
| 30        | Tamil Nadu                  |     18.89 |     19.23 |     19.69 |
| 31        | Telangana                   |      4.22 |      4.31 |      4.49 |
| 32        | Tripura                     |      0.97 |      1.07 |      1.17 |
| 33        | Uttar Pradesh               |     18.55 |     19    |     19.65 |
| 34        | Uttarakhand                 |      1.45 |      1.59 |      1.77 |
| 35        | West Bengal                 |     10.58 |     10.72 |     10.94 |
|           | TOTAL                       |    136.4  |    140.35 |    146.99 |