Lok Sabha Question No. 1218 (UNSTARRED), answered on 2023-02-09
Subject: Khadi and Village Industries Commission
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: C.N. Annadurai, Ganesan Selvam, Manjulata Mandal, Dhanush M Kumar

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

## LOK SABHA UNSTARRED QUESTION NO. 1218 TO BE ANSWERED ON 09.02.2023

## KHADI AND VILLAGE INDUSTRIES COMMISSION

1218.

SHRI C.N. ANNADURAI: SHRI SELVAM G.: SHRIMATI MANJULATA MANDAL: SHRI DHANUSH M. KUMAR:

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

- (a) whether Khadi and Village Industries Commission (KVIC) has been successful in achieving their objectives during the last three years and if so, details thereof;
- (b) the achievements made by KVIC since its inception;
- (c) whether the Government has been able to boost export of products manufactured in villages under KVIC during each of last three years;
- (d) if so, the value and quantity of the Khadi Products exported from Tamil Nadu and Odisha;
- (e) the challenges being faced by the Government while boosting export;
- (f) whether the Government has accorded the status of Export Promotion Commission to KVIC to facilitate it and if so, the details thereof;
- (g) the details of special incentives extended to Khadi and Village Industries to export more of its products;
- (h) whether  the  Union  Government  extends  support  to  State  Government  of  Tamil  Nadu  to promote Khadi Industry through KVIC and if so, details thereof; and
- (i) the steps taken by the Government for financial inclusion of more and more vendors and also for improvement of their living conditions?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a)&(b): The Khadi and Village Industries Commission has achieved its objective of providing employment, producing saleable articles; and creating self-reliance amongst the people and building up of a strong rural community spirit.

Khadi  Institutions  and  Village  Industries  micro  units  promoted  and  assisted  by  Khadi  and Village  Industries  Commission (KVIC) are engaged in production and sales of Khadi and Village Industries (KVI) products and hence generating employment opportunities for rural artisans through implementation of various Schemes and programmes.

## Details of achievements since inception and during last three years is given below:

|                                                                             | Since inception (2008-09 to   | During Last three years   | During Last three years   | During Last three years   |
|-----------------------------------------------------------------------------|-------------------------------|---------------------------|---------------------------|---------------------------|
| Name of the Scheme                                                          | 2022-23 as on 31.01.2023)     | 2019-20                   | 2020-21                   | 2021-22                   |
| Prime Minister's Employment Generation Programme (Employment in nos.)       | 6874610                       | 533224                    | 595320                    | 825752                    |
| Khadi and Village Industries sector (Production - Rs. in cr.)               | 772232.95                     | 67667.31                  | 72235.15                  | 84289.93                  |
| Khadi and Village Industries sector (Sales- Rs. in cr.)                     | 980276.44                     | 88875.54                  | 95741.36                  | 115415.2                  |
| Khadi and Village Industries sector (Cumulative Employment in lakh persons) | 171.34                        | 152.73                    | 159.06                    | 167.61                    |

## (c) to (e): KVI  institutions/units  export  their  products  directly  or  through  merchant/agencies. The quantum of exports of KVI products through KVI institutions/units during the last three years is as follows:

| Year    |   KVI Export (Rs. in cr.) |
|---------|---------------------------|
| 2019-20 |                    238.5  |
| 2020-21 |                    209.28 |
| 2021-22 |                    257.02 |

Following are the main challenges to boost the export of KVI products:

- i. Lack  of  awareness  amongst  manufacturers  in  small  villages  regarding  global  standards, quality, and contemporary market demand.
- ii. Limited access to credit and knowledge regarding export of KVI items in the international market
- iii. Lack of marketing and promotion of KVI products in global market

Following initiatives  are  being  taken by  KVIC to  address  the  above  challenges  and boost  the export of KVI products:

- i. KVIC has participated in the event 'World Expo 2020' in Dubai from 1st to 31st   January 2022 with display & Sale of Khadi and Village Industries Products.
- ii. KVIC  participates  every  year  in  India  International  Trade  Fair  (IITF)  organized  by  India Trade  Promotion  Organization  (ITPO)  at  Pragati  Maidan,  New  Delhi,  displaying  KVI products.
- iii. KVIC  also  conducts  export  workshops  for  facilitation  of  marketing  linkages  for  KVI products.

(f): Ministry  of  Commerce  &  Industry,  Govt.  of  India  has  extended  to  KVIC,  the  status  of deemed Export Promotion Council (EPC) for supporting promotion of KVI products in international market.1089 KVI  Institutions and Rural Employment  Guarantee  Programme  (REGP)/Prime Minister's Employment Generation Programme (PMEGP) units have taken its membership to enter the field of export in the international market.

(g): Following steps are being taken to promote the export of KVI products:

- i. KVIC under  International  Cooperation  (IC)  scheme  of  Ministry  of  MSME  facilitates  the participation of KVI units in international exhibitions/trade fairs, etc.
- ii. Harmonized Commodity Description and Coding system (HS code) has been issued to 11 khadi products for export promotion.

(h): Ministry of MSME, through KVIC is implementing Central Sector Schemes in Khadi Sector to support  Khadi Institutions and artisans. The State Khadi and Village Industries Boards (KVIBs) plays an important role in the implementation of  KVI schemes/programmes. All the State Boards have their offices at District level, including Tamil Nadu State.

(i): The Government is extending its support for encouraging increased production and sales of KVI products,  by  enrolling  Khadi  Institutions.  With  increased  production  and  value  addition,  the living conditions of Khadi Artisans (Spinners & Weavers) is being improved.

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