- Record Allocation: ₹1,066 crore has been set aside for the Khadi Gramodyog Vikas Yojana in Budget 2025-26.
- Growing Sales: Khadi sales have surged significantly, reaching ₹5,352.01 crore as of December 2024.
- Support for Artisans: The scheme aims to enhance productivity and improve livelihoods for over 5 lakh khadi artisans.
The Khadi Gramodyog Vikas Yojana (KGVY) continues to grow with a budget allocation of ₹1,066 crore for the financial year 2025-26, up from ₹1,037.19 crore in the previous year. This marks a remarkable increase following a 13% rise from ₹917 crore in 2023-24.
Established in November 2019, KGVY is an umbrella scheme encompassing the Khadi Vikas Yojana and Gramodyog Vikas Yojana. Since its introduction, it has consistently received an upward trend in budgetary allocations, showing the government’s commitment to support khadi artisans.
Key Features of Khadi Gramodyog Vikas Yojana
This scheme aims to boost the productivity and infrastructure of khadi artisans while enhancing their sales and improving their livelihood substantially.
- Financial Support: KGVY offers financial assistance through interest subsidies and loans to registered entities for their capital requirements.
- Target Beneficiaries: Benefits are extended to artisans aged between 18-55 years.
According to data from the Ministry of Micro, Small, and Medium Enterprises, there are about 5 lakh artisans engaged in khadi production across rural India, with a notable increase in women artisans working directly from their homes.
The KGVY also projects to institutionalize local artisans by promoting common logos and signage to enhance the market reach of khadi textiles. The scheme has identified six major industry verticals, such as mineral-based industries and rural engineering, focusing on boosting artisan training and skill development.
Furthermore, KGVY has established 15 Centres of Excellence across various sectors like leather footwear, pottery, and agro-based food processing. These institutes are vital for advancing research and development along with providing advanced training.
Achieving Growth in Khadi Sales
Sales of khadi have shown a steady increase from ₹3,527.7 crore in 2020-21 to an impressive ₹5,352.01 crore by the end of December 2024. Below is a summary of khadi production and sales over the years:
| Financial Year | Khadi Production (In ₹ Cr) | Khadi Sales (In ₹ Cr) |
|---|---|---|
| 2020-21 | 1,904.4 | 3,527.7 |
| 2021-22 | 2,558.3 | 5,051.7 |
| 2022-23 | 3,206.2 | 4,496.0 |
| 2024-25 (up to 31.12.2024) | 2,538.0 | 5,352.0 |
Moreover, collaborations with leading companies like Aditya Birla Fashion & Retail and Raymond are set to strengthen the khadi market, both domestically and internationally. The Khadi & Village Industries Commission has also successfully registered trademarks for khadi fabric in Bhutan, UAE, and Mexico, although 40 more countries are pending registration.
Through these measures, the government aims to safeguard the unique identity of khadi and empower artisans significantly, contributing to the growth and sustainability of this vital sector.