Lok Sabha Question No. 4105 (UNSTARRED), answered on 2019-07-18
Subject: Sale of Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Balak Nath

4105.

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

## LOK SABHA UNSTARRED QUESTIONNO. 4105 TO BE ANSWERED ON 18.07.2019

## SALE OF KHADI PRODUCTS

SHRI BALAK NATH:

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  in  the  recent time period in the country;
- (b) if so, the details thereof indicating the production, sale and export of Khadi products during each of 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?

## ANSWER

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

- (a): Yes, Sir.
- (b): Sale  of  Khadi  has  increased  from  Rs.2510.21  crore  during  2017-18  to  Rs.  3215.13 crore during 2018-19, which shows around 28% growth.

The  production  and  sale  of  Khadi  during  the  last  three  years  and  the  current  year  is  as follows:

(Rs. in crore)

| Particular          |   2016-17 |   2017-18 |   2018-19 (Provisional) |   2019-20 (as on 31.5.2019) |
|---------------------|-----------|-----------|-------------------------|-----------------------------|
| Production of Khadi |   1520.83 |   1626.66 |                 1963.3  |                      269.95 |
| Sale of Khadi       |   2146.6  |   2510.21 |                 3215.13 |                      390.63 |

The export of Khadi & Village Industries (KVI) products is done by the Khadi and Village Industries Institutions and units directly or through merchant exporters.  KVIC do not export directly. Year-wise export of Khadi products for the last three years is given below, but the figures for the current year 2019-20 are not yet available/compiled with/by the KVIC:

(Rs. in lakh)

| Particular                                             |   2016-17 |   2017-18 |   2018-19 (Provisional) |
|--------------------------------------------------------|-----------|-----------|-------------------------|
| Exports of Khadi Products including readymade garments |    301.47 |    186.38 |                     185 |

- (c): The  steps/initiatives,  taken  by  the  Government  to  promote  Khadi  industry  and  for promotion and export of Khadi products are given in the annexure.

*****

## Annexure referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 4105 for answer on 18.07.2019

Following are the initiatives taken for promotion and export of Khadi products:

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. For unique identity of 'Khadi', a separate HS code for 22 items of Khadi product has also  been  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) |

12. KVIC has entered into an agreement with M/s. GLOBUS, a retail clothing stores chain for setting up of 'Khadi Korner', a shop in shop concept, initially in Globus Showroom at Noida, followed by Globus showrooms in Chennai and Ahmedabad.
13. Setting up of modern 'Khadi Lounge' with exquisite Khadi designer garments.
14. Launching of 'franchise scheme' to expand the sales distribution network.
15. Tie up with e-Commerce platform for on-line marketing through e-Commerce companies like PayTM.
16. Opening  of  sales  outlets  at  domestic  as  well  as  international  airports  like  Visakhapatnam, Lucknow,  Ahmedabad and Varanasi.
17. Opening Khadi Outlets in Post Offices.
18. Launched 'store app' through mobile application to facilitate the customers to locate Khadi India  sales  outlet  at  various  geographical  locations  to  increase  foot  falls  at  various  stores under Khadi sector.
19. Introduction  of  pre-paid  Gift  Voucher  Scheme  for  corporate  gifting  including  PSU  and Government Departments.
20. Special efforts to attract youth by introducing attractive T-shirts, Khadi jeans, jackets, kurtis, etc. as well as launching a range of casual wear called 'vichar vastra' specially designed by Ms. Ritu Beri.
21. Introduction  of  pre-paid  Gift  Voucher  Scheme  for  corporate  gifting  including  PSU  and Government Departments.