MSME Ministry Seeks Rs. 60 bn for Khadi, Village Industries
About 20.4 mn people were engaged in khadi and village industries in fiscal year 2026 (FY26), according to the Khadi and Village Industries Commission (KVIC). The government spent Rs. 23.74 bn under the scheme during the three years through FY26. The programme has two components: Khadi Vikas Yojana, which promotes and develops the khadi sector, and Gramodyog Vikas Yojana, which supports village industries through shared facilities, technological modernisation, training and other assistance.
The MSME ministry implements support through KVIC, a statutory body established by an Act of Parliament in 1956. Discussions on continuing the scheme are under way, with targeted assistance planned for the broader ecosystem, according to a government official. Queries sent to the MSME and finance ministries and KVIC remained unanswered.
Sales of khadi and village industry products reached Rs. 1.87 tn in FY26, up 20 per cent from Rs. 1.55 tn a year earlier, based on provisional KVIC data released in May. Khadi sales increased 10 per cent to Rs. 78.69 bn from Rs. 71.45 bn. Artisan wages also rose to Rs. 15 per hank in FY26 from Rs. 4 in FY14, although hank lengths vary by textile.
Industry representatives said financial support would need to be accompanied by better infrastructure, improved production practices and stronger market connections. Many small businesses in the sector operate outside the formal economy and have limited financial capacity to pay higher wages. The sector must also respond to demand for healthier products, better-quality textiles and climate-related production challenges while retaining regional craft identities and supporting the livelihoods of producers.