Lok Sabha Question No. 977 (UNSTARRED), answered on 2026-02-05
Subject: Khadi Products with e-Commerce Platforms
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Mani A

## 977.

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

LOK SABHA UNSTARRED QUESTION NO. 977 TO BE ANSWERED ON 05.02.2026

## KHADI PRODUCTS WITH E-COMMERCE PLATFORMS

SHRI MANI A:

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

- (a) whether the Government has reviewed the performance and viability of Khadi and Village Industries  institutions  in  Tamil  Nadu,  particularly  in  terms  of  production,  sales  and  employment generation during the last three years, if so, the details thereof;
- (b) the number of Khadi institutions, artisans enrolled and units operational in the State including the level of infrastructure support provided;
- (c) whether  any  delays  or  shortfalls  in  Margin  Money  Subsidy,  marketing  support  and  raw material availability have adversely affected the growth and sustainability of Khadi units and if so, the details thereof;
- (d) the funds allocated, released and utilised for Khadi development, marketing and urban retail expansion in Tamil Nadu during the last three years; and
- (e) the  steps  being  taken  to  strengthen  market  linkages,  brand  promotion  and  integration  of Khadi products with e-commerce platforms to improve incomes of artisans?

## ANSWER

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

- (a): The  performance  of  the  Khadi  Institutions  such  as  production,  sales  and  employment  are monitored regularly by Government through Khadi and Village Industries Commission (KVIC), a statutory organisation under Ministry.

The production, sales and employment generated in Khadi sector in the state of Tamil Nadu during the last 3 years are as under:

(Rs. in lakhs; Emp in No.)

|   Sr. No. | Particulars           |   Performance in last 3 years |
|-----------|-----------------------|-------------------------------|
|         1 | Production            |                       92195.7 |
|         2 | Sales                 |                      163828   |
|         3 | Cumulative Employment |                       21315   |

(b) and (d): Total 81 Khadi Institutions are registered in the state of Tamil Nadu, out of which 73 Khadi Institutions are functioning. Total 21,315 numbers of Khadi Artisans are engaged in Khadi Sector in the State of Tamil Nadu.

Regarding  the  Infrastructure  support  provided  to  Khadi  Institutions ,  financial  assistance  is being provided to Khadi Institutions and Artisans through various schemes / programmes such as:

-  Under  Modified  Market  Development  Assistance  (MMDA ):  Under  MMDA  financial assistance  is  being  provided  for  modernization  and  computerization  of  sales  outlets,  value addition  by  adopting  latest  technologies  in  the  post  fabric  stage/process,  Technology  upgradation etc.
-  Under ISEC : The Interest Subsidy Eligibility Certificate (ISEC) is issued by KVIC to eligible Khadi institutions based on their production levels and estimated funding requirements. Under the scheme, credit is provided to Khadi institutions at a concessional interest rate of 4% per annum  for  both  Capital  Investment  (CI)  and  Working  Capital  (WC),  based  on  their requirements.
-  Under Workshed Scheme for Khadi Artisans : The aim of the component of the Scheme is to provide Khadi artisans with improved workspaces for spinning and weaving activities. It also offers storage facilities for raw materials, tools, accessories, and semi-finished or finished goods etc.
-  Under Strengthening of Existing Weak Khadi Institutions by providing Infrastructural Assistance :  Under  this  component  of  the  scheme  need-based  support  is  provided  to  weak, sick,  problematic,  or  D-category  Khadi  institutions  that  have  the  potential  to  revive  and become self-sustaining.
-  Marketing Assistance for Renovation of Sales Outlets : This component of the scheme aims to  enhance  the  marketing  of  Khadi  products  through  the  renovation  of  sales  outlets, introduction of new designs, and development of ready-to-use products.

The details  of funds  disbursed  by KVIC under Various components of the schemes for the development of Khadi in the state of Tamil Nadu during the last 3 years are as under:

|   Sr. No. | Components of the Schemes                                             |   Funds disbursed by KVIC in last 3 years (Rs. in lakhs) |
|-----------|-----------------------------------------------------------------------|----------------------------------------------------------|
|         1 | Modified Market Development Assistance(MMDA)                          |                                                  7251.2  |
|         2 | Interest subsidy eligibility certificate (ISEC)                       |                                                  2144.29 |
|         3 | Work-shed Scheme                                                      |                                                   194.4  |
|         4 | Strengthening of weak Khadi Institutions (Infrastructural Assistance) |                                                    15    |
|         5 | Strengthening of weak Khadi Institutions (Marketing Assistance)       |                                                   167.93 |
|         6 | Exhibitions                                                           |                                                   108.75 |

(c): Marketing  support  and  the  availability  of  raw  materials  have  been  provided  to  the  Khadi Institutions in a timely manner, as per the requirements of the Institutions and in accordance with the scheme guidelines

(e): Following steps are being taken by  KVIC to strengthen market linkages, brand promotion and integration of Khadi products with e-commerce platforms to improve the income of artisans:

-  The KVIC operates its own e-commerce portal www.khadiindia.gov.in providing nationwide access to procure Khadi products.
-  The KVIC is organizing various exhibitions such as National Level Exhibition, Zonal Level Exhibition, State Level Exhibition, District Level Exhibition, Special Exhibition, etc.
-  KVIC is encouraging the Khadi Institutions  to  participate in the  Indian  International  Trade Fair, Trade Fairs in Abroad, etc.
-  During the celebration of Khadi Mahotsav, special sales are encouraged to market the Khadi products.
-  Apart  from  that,  KVIC  is  sponsoring  various  marketing  programmes  such  as  Shaastra  & Saarang @ IIT-Madras, Dhruva @ IIM-Tiruchirappalli, etc.
-  The  salient  features  of  the  Khadi  products  are  made  wide  publicity  through  print  and electronic media.
-  The  brand  'Khadi  India'  is  promoted  by  way  of  sponsoring  the  events  conducted  by other/independent entities for creating brand awareness and market reach.

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