The Khadi and Village Industries Commission (KVIC) is a statutory body formed by the Government of India to promote and support rural development, self-reliance, and employment through traditional industries. This initiative not only aims to boost the Indian economy by encouraging indigenous production but also preserves cultural heritage and crafts that have existed for centuries. Established in 1957 under the Khadi and Village Industries Commission Act, the KVIC scheme works under the administrative control of the Ministry of Micro, Small and Medium Enterprises (MSME).
This scheme focuses on empowering rural artisans, entrepreneurs, and small-scale producers through various financial and training support. It aims to build sustainable communities by generating employment opportunities and reducing urban migration. The KVIC scheme encompasses various sub-programs such as Prime Minister’s Employment Generation Programme (PMEGP), Interest Subsidy Eligibility Certificate (ISEC) scheme, and Market Promotion and Development Assistance (MPDA).
In recent years, the KVIC has gained attention not just for its economic contributions, but also for promoting eco-friendly, handmade, and organic products under the “Make in India” initiative. Through a mix of policy support, grassroots implementation, and public awareness, the KVIC scheme is laying a strong foundation for Atmanirbhar Bharat (Self-Reliant India).
Objectives of the KVIC Scheme
The core objective of the KVIC scheme is to create self-employment opportunities in India’s rural and semi-urban areas through the promotion of Khadi and other village industries. One of the key reasons for establishing KVIC was to ensure equitable growth that reaches all segments of society, especially in backward and tribal regions.
Employment generation is the primary goal. By training artisans and providing access to raw materials, tools, and markets, KVIC helps build sustainable livelihoods. Additionally, it encourages the production of eco-friendly goods made from cotton, wool, silk, honey, coir, leather, and other natural materials.
Another objective is preserving India’s traditional arts and crafts. Many ancient techniques, like hand spinning and weaving, are promoted through Khadi production, which would otherwise disappear in the age of mass manufacturing.
The scheme also aims to:
- Improve the earnings of small-scale producers
- Reduce regional imbalances
- Enhance entrepreneurship among youth and women
- Encourage decentralized production and reduce urban migration
KVIC’s mission aligns with Gandhian principles, emphasizing simplicity, sustainability, and rural self-reliance. It is a blend of economic strategy and social empowerment that has continued to evolve with changing times and technologies.
Key Features and Benefits of KVIC
The KVIC scheme offers a wide range of features that benefit rural artisans, micro-enterprises, and budding entrepreneurs. These features are structured to support the entire value chain — from production to marketing.
Financial Support
KVIC provides subsidized loans and financial assistance through schemes like PMEGP, which allows individuals to start new ventures with minimal investment. Entrepreneurs can receive up to Rs. 25 lakhs for manufacturing and Rs. 10 lakhs for service-based businesses with subsidies up to 35% for SC/ST and women applicants in rural areas.
Skill Development and Training
KVIC runs skill development workshops, training camps, and certificate programs to upgrade artisan skills. This ensures that traditional knowledge is passed down and improved with modern techniques.
Raw Material and Tool Supply
It also helps artisans by supplying raw materials at affordable rates and giving access to improved tools and technology.
Marketing and Export Assistance
To help products reach a larger audience, KVIC offers marketing support through Khadi outlets, exhibitions, online platforms, and export incentives. Special branding efforts like Khadi India and Khadi Organic have brought Khadi into the mainstream fashion and wellness industries.
These benefits ensure that rural entrepreneurship is not just encouraged but made feasible and profitable.
Prime Minister’s Employment Generation Programme (PMEGP)
The PMEGP is one of the flagship schemes under KVIC, launched to promote self-employment among India’s youth. This scheme merges the efforts of Rural Employment Generation Programme (REGP) and Prime Minister’s Rojgar Yojana (PMRY) into one unified plan that’s easier to implement.
Under PMEGP, individuals aged above 18 years with at least 8th standard education can apply to set up micro-enterprises in the manufacturing or service sector. No collateral is required for loans up to Rs. 10 lakhs, making it highly accessible for first-time entrepreneurs.
The scheme offers:
- Loan limit: Up to Rs. 25 lakhs for manufacturing and Rs. 10 lakhs for service sectors
- Subsidy: 15% to 35% depending on category and location
- Margin money contribution: Only 5%-10% from the entrepreneur
PMEGP is implemented through KVIC, District Industries Centers (DICs), and banks, making it accessible across India. Thousands of jobs have been created through small units producing handmade paper, honey, agarbatti, soaps, leather items, and more. It is one of the most successful schemes in promoting grassroots entrepreneurship.
Role of Khadi in India’s Rural Economy
Khadi is not just a fabric—it is a movement. Popularized by Mahatma Gandhi during the freedom struggle, Khadi symbolizes self-reliance, simplicity, and national pride. Today, it is an integral part of rural economic empowerment through the KVIC scheme.
Khadi production employs thousands of spinners, weavers, and finishers in rural India, most of whom are women and elderly workers. The process is entirely manual and eco-friendly, making it a zero-carbon industry. Unlike fast fashion, Khadi is slow-made, biodegradable, and sustainable.
KVIC supports this ecosystem by:
- Providing spinning wheels (charkhas) and looms
- Supplying raw cotton and silk
- Offering wages and incentives to artisans
- Promoting Khadi through government purchases and e-commerce platforms
Khadi products have also evolved. From simple dhotis and sarees, they now include designer wear, cosmetics, shoes, and wellness items, appealing to urban and international customers.
This unique combination of tradition and innovation makes Khadi a key contributor to India’s rural economy and cultural identity.
Market Promotion and Branding Initiatives
KVIC has taken significant steps to modernize the image of Khadi and village industries. It has launched marketing initiatives and collaborations with renowned designers, corporate sectors, and global platforms to promote its products.
Some major initiatives include:
- Khadi India brand outlets in major cities and airports
- Khadi e-portal and listings on Amazon, Flipkart, etc.
- Tie-ups with fashion designers for Khadi Fashion Shows
- Collaboration with PSUs and government bodies for uniform production
Under the Market Promotion and Development Assistance (MPDA) scheme, KVIC supports artisans and institutions by covering costs for publicity, branding, and participation in trade fairs. This visibility helps small artisans get exposure and orders from large buyers.
Efforts like these not only increase sales and profits, but also help break stereotypes associated with Khadi, making it a modern and appealing brand across generations.
How to Apply for KVIC Benefits and Schemes
Applying for benefits under the KVIC scheme is now streamlined through online portals and local offices.
Steps include:
- Visit the official KVIC website: kviconline.gov.in
- Register under the desired scheme (e.g., PMEGP, SFURTI, etc.)
- Submit necessary documents (Aadhaar, educational proof, project report)
- Await verification and interview with the District Task Force Committee
- Upon approval, funds are released through partnered banks
Alternatively, you can also apply through Common Service Centers (CSCs) or visit your local District Industries Center (DIC) for offline applications.
KVIC also provides guidance for project reports, marketing, raw material procurement, and business mentorship. With increasing digital access and government support, rural entrepreneurs can now easily avail financial assistance and training to start and grow their ventures.
Conclusion
The KVIC scheme is a powerful example of how tradition can meet modernity to build a self-reliant rural economy. By supporting Khadi and village industries, it uplifts rural artisans, generates employment, and promotes sustainable production. Through financial aid, training, marketing, and policy support, KVIC empowers thousands of micro-entrepreneurs across India.
In a time when global supply chains and fast fashion dominate the market, KVIC stands as a symbol of India’s grassroots strength and cultural legacy. Whether you’re an aspiring entrepreneur or a supporter of sustainable living, understanding and participating in the KVIC scheme is a step toward a better, more inclusive future.
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