New Delhi: India’s Khadi and Village Industries sector is expanding beyond traditional textiles, with rural enterprises producing honey, herbal products, incense sticks, bakery goods, packaging materials and other products for wider markets. In 2025–26, sales of Khadi and Village Industries products reached a record ₹1.87 lakh crore, while employment in the sector rose to 2.04 crore.
According to a backgrounder released by the Press Information Bureau (PIB) on October 13, 2026, sales increased by 501% compared with 2013–14. Production grew by 380% to ₹1,25,296 crore over the same period, while employment increased by 56%.
The figures highlight the growing role of village industries in rural livelihoods, small businesses and local manufacturing. The Khadi and Village Industries Commission (KVIC) supports this growth through training, financial assistance, modern equipment and marketing opportunities.
Khadi and Village Industries Record Strong Growth
Khadi has long been associated with India’s freedom movement and self-reliance. Today, the sector also supports entrepreneurship by helping artisans and rural businesses turn traditional skills and locally available resources into marketable products.
The annual Khadi Mahotsav, held from October 2 to October 31, promotes Khadi and local products, with a particular focus on encouraging young people to embrace the “Vocal for Local” campaign.
KVIC is a statutory body established under the Khadi and Village Industries Commission Act, 1956. Its responsibilities include promoting village industries, organising training, supporting access to raw materials and markets, and encouraging research, skill development and quality improvement.
Artisan remuneration has also increased. According to the PIB backgrounder, payment for spinning rose from ₹4 per hank in 2013–14 to ₹15 per hank currently, an increase of approximately 275%. A hank is a length of yarn measuring 840 yards and weighing one pound.
Read Also: 80% of Khadi Artisans Are Women as India Expands Traditional Industry’s Global Reach
Training Opens Doors for Rural Entrepreneurs
Skill development remains an important part of KVIC’s support system. The commission operates a network of 35 departmental and non-departmental training centres offering programmes in activities such as food processing, bakery production, beekeeping, agarbatti making, candle manufacturing and motor repair.
During 2025–26, a total of 79,682 trainees received training under various KVIC programmes. Women accounted for 47,382 trainees, or approximately 59% of the total.
Women also form a significant part of the Khadi workforce. They constitute more than 80% of the approximately five lakh artisans working in the Khadi sector, underlining the importance of these industries in creating livelihood opportunities for women.
Training is complemented by support for tools, equipment, production methods and market access, helping artisans improve their capacity to manufacture and sell products.
PMEGP Supports Jobs and Small Businesses
The Prime Minister’s Employment Generation Programme (PMEGP) has provided employment opportunities to nearly 97.95 lakh people through KVIC since March 2008, according to the PIB backgrounder.
One beneficiary is Jitendra Baitha, who established a bakery products manufacturing unit in Bihar in 2020. His business now records an annual turnover of ₹72 lakh and employs 20 people from the local community.
The example shows how assistance for establishing a small manufacturing unit can create opportunities beyond the entrepreneur, supporting jobs within the surrounding area.
Modern Equipment Helps Artisans Expand Production
Under the Gramodyog Vikas Yojana, KVIC provides artisans with modern machines, toolkits and equipment to strengthen their production capabilities.
During 2025–26, the commission distributed 37,769 machines, toolkits and pieces of equipment. By May 2026, the cumulative distribution under the scheme had exceeded 3.23 lakh.
The Khadi Vikas Yojana also helps Khadi institutions improve products, add value and respond to changing market demand. Its Modified Market Development Assistance mechanism provides greater flexibility for value addition and market-oriented pricing.
During 2024–25, ₹245 crore was disbursed to 1,097 Khadi institutions, benefiting 1,45,484 artisans.
Eligible Khadi institutions can also access credit at a concessional interest rate of 4% per annum under the Interest Subsidy Eligibility Certificate Scheme.
The Workshed Scheme addresses another practical need by supporting better production spaces for artisans. During 2025–26, up to December 2025, 1,309 artisans benefited under the scheme.
Together, these measures aim to improve working conditions, strengthen production and help village enterprises respond to market opportunities.
Rural Enterprises Reach National and International Markets
KVIC-backed businesses illustrate how traditional knowledge and local resources can support enterprises across different industries.
In Punjab, S.P. Singh developed a business producing honey and cookies with support under PMEGP. The enterprise now employs around 200 workers and exports products to 36 countries. According to the PIB backgrounder, the business expanded its international presence through participation in exhibitions in Dubai, the United States and the Middle East. It is also developing a second unit in Rajpura, Punjab, to expand honey exports to European markets.
In another example, B. Sundaraj has developed an agarbatti unit producing incense sticks, herbal products, vetiver agarbatti and vetiver samburani. Support under the Gramodyog Vikas Yojana during 2024–25 helped strengthen the unit’s manufacturing capacity and diversify its product range.
In Jatti Majra village in Himachal Pradesh’s Solan district, Sahil Chaudhary runs a mono-carton manufacturing unit serving construction and packaging requirements. Established at a project cost of ₹25 lakh under PMEGP, the unit records an annual turnover of around ₹45 lakh and employs 23 people.
These examples demonstrate how financial assistance, improved equipment and market connections can help rural entrepreneurs build businesses around locally available skills and resources.
Khadi India Expands Access to Consumers
KVIC is developing both digital and physical sales channels to connect village industries with more customers.
Its online Khadi India store, available at www.khadiindia.gov.in, offers products across categories including clothing and fabrics, groceries, beauty products, essential oils, perfumes and incense sticks.
The marketing network includes eight departmental Khadi India sales outlets, 15 KVIC branches and another 8,035 sales outlets operated by Khadi institutions across the country.
National, zonal, state and district exhibitions also provide opportunities for producers to showcase their products and connect with buyers. KVIC promotes participation in domestic and international trade fairs to help enterprises reach new markets.
Khadi is also gaining visibility in contemporary fashion. Its craftsmanship has featured at platforms such as New Zealand Fashion Week 2026 and Lakmé Fashion Week 2025, bringing traditional techniques into modern designs.
From Traditional Skills to Sustainable Livelihoods
The expansion of Khadi and Village Industries reflects a wider effort to connect rural skills with finance, technology, training and consumer markets. Higher sales and production, growing employment and improved artisan remuneration indicate the sector’s economic significance.
For rural communities, the benefits extend beyond the preservation of traditional crafts. Small manufacturing units, food-processing businesses and other village enterprises can generate local employment while creating new income opportunities for artisans and entrepreneurs.
As KVIC continues to support skill development, equipment access, affordable credit and marketing, village industries have more avenues to participate in India’s broader push for self-reliance and local enterprise.
Read Also: KVIC Turns Traditional Skills Into Rural Businesses, 2.46 Lakh Bee Boxes Distributed Since 2017
