Lok Sabha Question No. 658 (UNSTARRED), answered on 2025-02-06
Subject: Khadi Production
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Navaskani K, Shri Selvam G, Shri C N Annadurai

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

## LOK SABHA UNSTARRED QUESTION No. 658 TO BE ANSWERED ON 06.02.2025

## KHADI PRODUCTION

658.

SHRI C N ANNADURAI: SHRI SELVAM G: SHRI NAVASKANI K:

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

- (a) the details of khadi production and sales recorded during the last three years and the current year;
- (b) whether  the  Government  proposes  to  support  the  development  of  Khadi  clusters  and  cooperative societies to improve production efficiency and quality and if so, the details thereof;
- (c) whether  the  Government  is  collaborating  with  any  e-commerce  platforms  to  increase  the  reach  of khadi products and if so, the details thereof;
- (d) the details of the employment opportunities generated in Tamil Nadu associated with Khadi and other related activities during the last five years;
- (e) the  steps  taken  by  the  Government  to  ensure  that  the  benefits  of  Khadi  promotion  reach  the  most marginalized sections of society, including women and rural artisans;
- (f) the specific challenges faced by Khadi artisans in accessing credit and other financial services; and
- (g) the other steps taken by the Government to promote the sale of Khadi products both domestically and internationally?

## ANSWER

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

(a): Year-wise Khadi Production and Sales in the last three years and current year up to 31.12.2024 is as follows:

(Production & Sales: Rs. in crore)

| Sr.   | Year                       | Khadi*     | Khadi*   |
|-------|----------------------------|------------|----------|
| No.   |                            | Production | Sales    |
| 1     | 2021-22                    | 2558.31    | 5051.72  |
| 2     | 2022-23                    | 2915.83    | 5942.93  |
| 3     | 2023-24                    | 3206.24    | 6496.01  |
| 4     | 2024-25 (up to 31.12.2024) | 2538.03    | 5352.00  |

(b): Yes,  to  improve  production  efficiency  and  quality  Government  supports  the  development  of  Khadi clusters and Khadi Institutions (KIs). KIs are societies registered under the Societies Registration Act 1960. KVIC  is  implementing  Khadi  Gramodyog  Vikas  Yojana  (KGVY),  a  Central  Sector  Scheme,  having  two major  components  viz.  Khadi  VikasYojana  (KVY),  Gramodyog  Vikas  Yojana  (GVY).  The  objectives  of KVY scheme are to increase productivity and wages of Khadi artisans, improve infrastructure for enhanced Khadi production, sales and employment through the following components:

- i. 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.
- ii. Interest  Subsidy  Eligibility  Certificate  (ISEC): Under  the  scheme  Interest  Subsidy  Eligibility Certificate  is  issued  by  KVIC to  the  eligible  KIs  on  the  basis  of  their production  and  requirement  of funds. KIs can avail bank loan and pay only 4% interest. The difference between the actual lending rate and 4% is paid by GoI through KVIC as 'Interest Subsidy'.
- iii. Strengthening of Infrastructure of Existing weak Khadi Institutions and Assistance for Marketing Infrastructure: This  component  provides  financial  support  to  the  Weak  Khadi  Institutions  with assistance of Rs. 15 lakh per KI to regain normalcy. Besides, financial assistance of Rs. 25 lakh per sales outlet is also provided to KIs/Departmental Outlets for its renovation.
- iv. 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.

Besides,  there  is  a  cluster  based  scheme  viz. Scheme  of  Fund  for  Regeneration  of  Traditional Industries (SFURTI) with an aim to help traditional industries to become more productive, profitable and capable for generating sustainable employment for traditional industries artisans including Khadi artisans. So far, 14 Clusters involving Khadi activities have been developed and the details of the Clusters are placed at Annexure.

- (c): Government through KVIC is operating its own e-commerce platform of www.khadiindia.gov.in for marketing of its various Khadi and Village Industries products. It is also moving with ONDC platform for uplinking Khadi and village industries products of KGB New Delhi for increasing the reach of products on pan India  level.  KVIC  has  also  strengthened  the  supply/marketing  mechanism  of  KVI  products,  to  create  an effective marketing through e-Market linkage with MSMEs-GeM portal (gem.gov.in).
- (d): Cumulative e mployment in Tamil Nadu State under Khadi Sector during last five years is as follows:
- (e): In  Khadi  sector,  the  participation  of  women  artisans  is  about  80%  and  mostly  in  rural  areas.  The Government has taken the following steps for benefitting of Khadi promotion reach the most marginalized sections of society, including women and rural artisans:
-  The MMDA incentive is directly provided to Khadi Artisans/Karyakartas through Aadhaar seeded bank / post office accounts through Direct Benefit Transfer (DBT).

| Year    |   Cumulative employment under Khadi Sector in Tamil Nadu (in numbers) |
|---------|-----------------------------------------------------------------------|
| 2019-20 |                                                                 20263 |
| 2020-21 |                                                                 20236 |
| 2021-22 |                                                                 20277 |
| 2022-23 |                                                                 20381 |
| 2023-24 |                                                                 20464 |

-  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.
-  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.
-  For  upliftment  of  the  marginalized  sector  of  the  society  including  women  and  rural  artisans,  KVIC through its Departmental and Non-Departmental Training Centres imparts SDP and conducts EAP in various  disciplines  of  Khadi  like  Khadi  Technology,  Khadi  Weaving  (Frame/Semiautomatic) Course, silk Reeling & Spinning, Khadi Design Development, Khadi Spinning (NMC) Course and Tailoring & Embroidery, etc.
- (f): Government is extending the following support directly to Khadi Institutions (KIs) as well as artisans through KVY components under KGVY scheme to enhance the Khadi production and livelihood of artisans as under:
-  Modified Market Development Assistance (MMDA)
-  Work-shed Scheme for Khadi Artisans
-  Interest Subsidy Eligibility Certificate (ISEC) scheme
-  Strengthening  of  Infrastructure  of  Existing  Weak  Khadi  Institutions  and  Assistance  for  Marketing Infrastructure
- (g): The steps taken by the KVIC to promote KVI products in domestic and international markets are as follows:
- i) Setting up of Centre of Excellence for Khadi on the Hub and Spoke model.
- ii) Organizing  various  level  exhibitions  and  participating  in  Indian  International  Trade  Fair  (IITF)  to make KVI products accessible in the domestic.
- 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.

*****

## Annexure referred to in reply to part (b) of the Lok Sabha Unstarred Question No. 658 for answer on 06.02.2025

## List of SFURTI Clusters under Khadi activities

|   Sr. No. | Cluster Name                                 | Products of cluster                                                                           |
|-----------|----------------------------------------------|-----------------------------------------------------------------------------------------------|
|         1 | Bijapur Khadi Cluster                        | Khadi products                                                                                |
|         2 | Bijoypur Silk Khadi Cluster                  | Brocade / Jacquard / Jamdani Sari, Designed Silk, Furnishing, Men's Women's &Kid's Garments.  |
|         3 | Chak Islampur Muslin Khadi Cluster           | Printed Fabric, Tie &Dye scarves, kids-wear ready- made items, Ethnic &Indo-western fashion   |
|         4 | Chitrashali Khadi Cluster                    | Khadi Shirt, Kurta, Sari, Dhoti etc.                                                          |
|         5 | Eri Silk Cluster                             | Khadi products                                                                                |
|         6 | Harihara Khadi Cluster                       | Designer Cotton garments and value added Khadi products.                                      |
|         7 | Hubli Khadi Cluster                          | High value Khadi products and regular cotton garments                                         |
|         8 | Kangayam Khadi Cluster                       | Readymade Designer Shirts, Ready to wear items, value added products.                         |
|         9 | Lakhimpur Silk Cluster                       | Khadi products                                                                                |
|        10 | PSK Silk Khadi Cluster                       | Khadi products                                                                                |
|        11 | Sandur Khadi Cluster                         | Khadi products                                                                                |
|        12 | Santhal Pragana Khadi Cluster                | Designer silk Khadi, spun silk, reeled silk, cotton Khadi, sari, shawls, Chadar, towels, etc. |
|        13 | Sidhalgatta Khadi Cluster                    | Ready-Made Silk garments and Khadi Fashion products.                                          |
|        14 | Vihan Sarvahara SFURTI cluster (Bulandshahr) | Khadi Fabrics, Apparels etc.                                                                  |