Lok Sabha Question No. 1525 (UNSTARRED), answered on 2025-02-13
Subject: Employment Opportunities in Khadi Sector
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Mani A

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

## LOK SABHA UNSTARRED QUESTION No. 1525 TO BE ANSWERED ON 13.02.2025

## EMPLOYMENT OPPORTUNITIES IN KHADI SECTOR

## 1525. SHRI MANI A:

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

- (a) the steps taken by the Government to promote Khadi as a sustainable and eco-friendly fabric in the domestic and international markets;
- (b) the number of new Khadi production units set up across the country especially in Tamil Nadu during the last three years;
- (c) the number of artisans and workers employed in the Khadi sector and the steps taken to increase employment opportunities in this sector;
- (d) whether there are any specific initiatives to attract youth to Khadi production and entrepreneurship and if so, the details thereof;
- (e) the role of Khadi and Village Industries Commission (KVIC) in promoting the development of Khadi and the funds allocated to KVIC during the last three years; and
- (f) whether there are any plans to expand KVIC's operations to include new regions and artisans and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): Government  of  India  through  Khadi  and  Village  Industries  Commission  (KVIC)  has  taken following steps taken to promote KVI products in domestic and international markets:
- i) Centre  of  Excellence  for  Khadi  on  the  Hub  and  Spoke  model,  with  National  Institute  of Fashion  Technology  (NIFT)  New  Delhi  as  Hub  along  with  NIFT  Ahmedabad,  Bengaluru, Kolkata and Shillong - have been set up for establishing benchmarked design processes for global standards, creating new fabrics and products, disseminating quality standards for fabrics, branding and publicity by creating interesting narratives around the new Khadi, creative visual merchandizing & packaging for new Khadi products and increasing the global reach of Khadi by organizing National and International Khadi Fashion Shows and Exhibitions.
- ii) Organizing various level exhibitions and participating in Indian International Trade Fair (IITF) to make KVI products accessible in the domestic market.
- iii) Arranged product supply/marketing mechanism through e-Market linkage for MSMEs through GeM portal (gem.gov.in), and e-marketing portal (www.ekhadiindia.com) with an objective to sell Buyer to Consumer.
- iv) Established  Khadi  Lounges  at  various  urban  centers  and  in  Tier-II  cities  for  attracting  both connoisseurs of Khadi as well as designers.
- v) Catering  to  the  need  of  Government  departments  and  bulk  buyers  of  various  Government Organization and PSUs to increase the sales of Khadi products.
- vi) Special discount has been announced on various occasions/festivals to attract customers and to boost the sales of KVI products.

- vii) For  protecting  the  identity  of  brand  'Khadi'  globally,  KVIC  has  secured  registration  for  the Trademark 'Khadi' in 15 countries and secured registration for the Khadi Logo in 31 countries.

(b): 184  new  Khadi  Institutions  have  taken  the  KHADI  certificate  for  carrying  out  the  Khadi production in the country including 03 new Khadi Institutions in Tamil Nadu State during the last three years i.e. from 2021-22 to 2023-24.

(c): Around  4.99  lakh  persons  are  engaged  in  Khadi  Sector  including  Khadi  spinners,  weavers, Khadi karyakartas, and other artisans involved in post-fabric production, garment conversion, and sales activities.  The  following steps are being taken by  KVIC to increase the  employment opportunities in Khadi sector:

- i) Spinning wages have been increased by 25% i.e. from Rs. 10.00/- per hank to Rs. 12.50/- per hank and  weaving  wages  are  increased  by  7%    for  cotton  khadi,  wollen  khadi  and  polyvastra  w.e.f. 02.10.2024.
2. ii) Modified Market Development Assistance (MMDA): Under MMDA, 35% of MMDA is provided to  artisans  as  incentive  in  case  of  Khadi  Institutions  of  cotton,  woolen,  polyvastra  and  30% quantum of MMDA is provided to artisans as incentive in case of Khadi Institutions of silk.
3. iii) Workshed Scheme for Khadi Artisans, provides financial assistance to artisans for construction of individual and group worksheds. An financial assistance upto Rs 1,20,000/- or 75% of the total cost  of  the  workshed  and  for  group  Workshed  (minimum  5  and  maximum  15  artisans),  an assistance  up  to  Rs.  80,000/-  per  artisan  or  75%  of  the  total  cost  of  the  group  Workshed, whichever is less, is provided.
4. iv) Establishing  Pashmina  Wool  roving  manufacturing  facility  in  Leh:  KVIC  has  made  efforts  to introduce the Pashmina  woolen spinning activity through NMC which would pave the way for more earnings & sustainable employment to the woolen spinners.
- v) Implementation  of  Khadi  Activities  in  Bali  Island  of  Sundarban  Area:  KVIC  has  undertaken initiatives  to  introduce  Khadi  activities  aimed  at  providing  sustainable  employment,  KVIC  has sanctioned 50 number of NMCs (under Sahyog Scheme), 115 numbers of NMCs & 8 number of looms under KRDP to implement the Khadi program through Chandrakanta Lalit Mohan Resham Khadi Samiti, Khagra Murshidabad. Subsequently, provided spinning training to 75 Spinners and 30 weavers to carry out spinning and weaving activities. Also, two group worksheds have been constructed to accommodate 30 spinners, providing a dedicated space to carry out their activities. Through these  efforts,  KVIC  is  helping  the  people  of  the  Sundarbans  build  secure  livelihoods within the Khadi sector.
6. vi) Raw Material  Bank:  KVIC  has  set  up  Marino  Wool  Bank  at  Bikaner,  Rajasthan  and    cocoon banks  are  being  set  up  at  Patna  &  Ranchi  in  order  to  cater  the  Raw  Material  need  of  Khadi institutions  in  Rajasthan,  Bihar  &  Jharkhand  State  for  widening  the  scope  of  more  production thereby increasing earnings of the Khadi artisans.

(d): The  following  initiatives  are  being  taken  to  attract  the  youth  to  Khadi  production  and entrepreneurship:

- i) To make it easier for youth entrepreneurs to start a business in Khadi Sector, an online platform was  created  to  obtain  the  Khadi  Mark  and  Khadi  Certificate  to  start  the  business  activities  in Khadi Sector.

- ii) KVIC organizes Entrepreneurship Awareness Programmes through field offices to popularize the Schemes implemented by KVIC for generation of Self-employment opportunities in the country.
- iii) Publicity of KVI Schemes and programmes through print, electronic, digital and social media.
- iv) KVIC provides handholding support to the Khadi Institutions/units for marketing of their Khadi products at National and International level.
- v) HS Code for 11 Khadi products so that the brand is protected and the international trade of our heritage products are tracked.
- vi) KVIC  is  promoting  its  marketing  activities  through  the  network  of  8035  'Khadi  India'  sales outlets  of  Khadi  Institutions  and  8  Departmental  Sales  Outlets,  and  its  18  retail  branches  and through  e-marketing  which  provide  a  wide  platform  for  sales  of  KVI  products  produced  by traditional artisans and craftsmen, across the country.

(e): Khadi and Village Industries Commission (KVIC) is a Statutory Body established by an Act of Parliament  (No.  61  of  1956)  and  as  amended  by  Act  No.  12  of  1987  and  Act  No.  10  of  2006.  The functions of the Commission are to plan, promote, facilitate, organize and assist in the establishment and development of khadi and village industries in the rural area in coordination with other agencies engaged in rural development. The Objectives of KVIC is as follows:

-  Social objective: Providing livelihood and employment
-  Wider objective: Creating self-reliance amongst the people
-  Economic objective: Producing saleable articles by artisans

Khadi Vikas Yojana is being implemented by KVIC for promoting the development of Khadi and to  increase  the  employment  opportunities  in  the  Khadi  Sector.  The  details  of  funds  allocated  under KGVY and KVY during the last three years are as follows.

(Rs. in crore

)

|   Sr. No. | Year    |   Funds allocated for KGVY |   Funds allocated for KVY |
|-----------|---------|----------------------------|---------------------------|
|         1 | 2021-22 |                     741.26 |                    305.13 |
|         2 | 2022-23 |                     685.51 |                    299.13 |
|         3 | 2023-24 |                     662.39 |                    343.44 |

(f): KVIC's  Programmes  are  widening  their  domain  across  sectors  of  the  economy,  producing diverse  range  of  products  and  services  to  meet  demands  of  domestic  as  well  as  global  markets. Following the initiatives for expansion of KVIC's operations to include new regions and artisans:

- i) KVIC is implementing Khadi and Village Industries programmes through 40 State/ Divisional/ Sub offices, 6 Zonal offices, 26 Departmental Sales Outlets and its branch offices, and 5 Central Sliver Plants at different parts of the country.
2. ii) Every year new KIs has been registered for the promotion and development of Khadi.
3. iii) Skill  Development  Programmes  in  various  trades  are  being  conducted  all  over  the  country through 35 Departmental and Non-Departmental Training Centres, and 25 training partners.
4. iv) Publicity of KVI Schemes and programmes through print, electronic, digital and social media.
- v) Handholding  support  to  the  Khadi  Institutions/units  for  marketing  of  their  Khadi  products  at National and International level helps in expansion of KVIC's operation.

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