Khadi India clocks unprecedented turnover riding on self-reliance

New Delhi [India], August 7 : As Indian government is increasingly harping on becoming self-reliant, India’s Khadi products (hand-woven products) are gaining more popularity among the youth.
Prime Minister Narendra Modi said Khadi can become a source of inspiration for achieving the dream of developed and Atmanirbhar Bharat.
“History has seen that a thread of khadi became a source of inspiration for the freedom struggle and broke the chains of slavery. In the same way a thread of Khadi can be a source of inspiration to fulfil the pledge of making India a developed nation, to achieve the dream of Atmanirbhar Bharat (self-reliant India),” he said in his speech.
Khadi commands a sentimental value for Indians. It symbolizes the need and importance of indigenous manufactured goods.
According to a statement, Khadi and Village Industries Commission (KVIC) has exceeded the turnover of the best FMCG companies in India. KVIC has, for the first time, clocked a massive turnover of Rs 1.34 lakh crore in 2022-23. In 2013-14, the turnover of Khadi and Village Industries (KVI) products was Rs 31,154 crore.
"There has been an unprecedented growth of 332 per cent in the sale of indigenous Khadi products made by artisans from 2013-14 to 2022-23. Among the different KVI products, there has been unmatched growth in the production of Khadi fabrics in the last 9 years. In 2013-14, the production of Khadi clothes was Rs 811 crore, with a jump of 260 per cent, it has touched the figure of Rs 2,916 crore in 2022-23. The demand for Khadi clothes has also increased rapidly from 2013-14 to 2022-23. In 2013-14, where its sales were only Rs 1,081.04 crore, by 2022-23, it increased by 450 per cent to touch the figure of Rs 5,942.93 crore", the statement added.
Khadi artisans associated with Khadi sector are also getting the benefit of increase in production and sale of Khadi clothes. Their remuneration has been increased by more than 150 per cent since 2013-14. The record production of Khadi has been possible due to the continuous efforts and hard work of the cotton spinners and weavers engaged in the production and sale of Khadi, it said.
The Khadi industry is one of the most prominent traditional industries in India as it not only boosts sales and employment opportunities for the artisans; but also strengthens export potential, contributes to GDP, promotes rural development and entrepreneurship.
Rebates on khadi products have been replaced with the market development assistance (MDA) scheme since April 1, 2021, based on recommendations from various committees. This new scheme aims to boost sales and improve the quality of Khadi for customers. Under MDA, 25 per cent of assistance is given to spinners and weavers as an additional incentive through their bank or post office accounts, reported Business Standard.
The modified market development assistance (MMDA) scheme, introduced in the third quarter of financial year 2016-17, focuses on technology upgradation, design development, modernisation of sales outlets, and incentives for artisans and karyakartas. The guidelines for MMDA were revised on October 19, 2022. The incentives provided under MMDA are different based on the type of khadi product and the parties involved.
In the last couple of years, KVIC’s main focus has been to create sustainable employment for artisans and unemployed youth. It has set a milestone by creating 9.5 lakh jobs in rural areas in 2022-23. Under Prime Minister’s Employment Generation Programme (PMEGP), the nation has set a new record by connecting the youth of the country with the Swadeshi Campaign.
More than 80 per cent of PMEGP units are set up in rural areas, out of which more than 50 per cent units are headed by SC, ST and women entrepreneurs. This has given a boost to women empowerment and women entrepreneurs in the country.
Under PMEGP, a total of 73.67 lakh people have been provided employment opportunities by setting up 8.69 lakh new projects during 2022-23, with a total margin money subsidy disbursement of Rs 21,870.18 crore from 2008-09 to 2022-23. Further, KVIC, through its training centres and through other promotional schemes, conducts Skill Development Programme (SDP) and Entrepreneurship Awareness Programmes (EAP) in the country for unemployed youth to generate self-employment opportunities in traditional industries.