1. KHADI & Village Industries
Commission
Presented by: Arup Dasgupta
Nagaland University

2. INTRODUCTION
KHADI (brand ambassador): Mahatma Gandhi
Khadi refers to handspun and hand-woven cloth
and the raw materials may be cotton, silk, or
wool, which are spun into threads.
Khadi was launched in 1920 as a political weapon
in the
Swadeshi movement of Mahatma Gandhi.
Khadi is sourced from different parts of India like

3. Village Industry
Any industry located in a rural area which produces
any goods or renders any service with or without the
use of power and in which the fixed capital investment
per head of an artisan or a worker does not exceed
[one lakh rupees] or such other sum as may, by
notification in the Official Gazette, be specified from
time to time by the Central Government.
Relevance of Khadi and village industry
Both are labor intensive in nature and we are labor
surplus country.
Required little capital to set up.

4. Khadi and Village Industries Commission
 KVIC is a statutory body
Abbreviation KVIC
formed by the
Government India. Formation 1956
 Six zonal offices in
Delhi Headquarters Mumbai
Bhopal, Bangalore, Kolk
ata, Mumbai and Parent organization MoMSMEs
Guwahati.
 want to reach every Minister of MSME Dinesh Patel
household in rural area
Chairperson Kumud Joshi
 To provide additional
employment of 37 lakhs
persons by the end of Staff Around 94 lacs
2011-12 through

5. Chronology
1935 – All India Village Industries Association was formed.
1946 – Government of Madras sought the advice of
Gandhiji and set up a department for Khadi.
1953 - Govt. of India set up All India Khadi & Village
Industries Board (AIKVIB)
1955 - It was decided that a statutory body should replace
the Board.
1956 - Khadi and Village Industries Commission Act 1956,
was passed.
1957 - Khadi and Village Industries Commission came
into being.

6. OBJECTIVE
SOCIAL OBJECTIVE: Creating and providing employment
opportunities in Rural areas with focus on women and
other weaker sections of the society.
ECONOMIC OBJECTIVE: Making use of locally available
raw material and skill.
WIDER OBJECTIVE: Creating sense of self-reliance
among the rural people
PROMISE: Transparency, responsiveness and prompt
action on queries/request from the target group.
GUIDANCE, HELP AND COMPLAINTS : Contact Public
Relation Officer at KVIC.

7. The KVIC has broadly re-grouped various
village industries under seven heads:
 Agro Based and Food Processing Industry
(Fruit and Vegetable Processing, pulses
processing ,village oil etc)
 Polymer and Chemical Based Industry (Soap
Industry, Leather Industry )
 Forest Based Industry (Medicinal Plants
Industry, Bee Keeping Industry)
 Mineral Based Industry (Lime)

8.  Handmade Paper and Fiber Industry
(Handmade Paper Industry, Fiber Industry)
 Rural Engineering and Bio – Technology
Industry (Non – Conventional Energy ,
Electronics)
 Service Industry

9. Function of KVIC
 Planning, promotion, organization and implementation of
programs for the development of Khadi and other village
industries in the rural areas.
 Training of persons employed or desirous of seeking
employment in Khadi and Village Industries.
 To build up reserves of raw materials and supply them to
persons engaged or likely to be engaged in production of
handspun yarn or Khadi or Village Industries.
 To provide financial assistance to institutions or persons
engaged in the development and operation of Khadi or Village
Industries
 Studies of the problems of Khadi or Village Industries.

10. Performance & Statistics : Sales
Year (Rs. In Crores)
Khadi Village Total
Industries
2000-2001 570.55 7384.55 7955.10
2004-2005 617.84 12487.35 13105.19
2005-2006 628.69 14647.33 15276.02
2006-2007 663.19 16899.21 17562.40
2007-2008 724.39 20819.09 21543.48
2008-2009 799.60 21948.59 22748.19

11. Employment
Year (In Lakh Persons)
Khadi Village Total
Industries
2000-2001 9.56 50.51 60.07
2004-2005 8.64 68.14 76.78
2005-2006 8.68 74.09 82.77
2006-2007 8.84 80.08 88.92
2007-2008 9.16 90.11 99.27
2008-2009 9.50 94.41 103.91

12. Scheme & program of the commission
 Prime Ministers Employment Generation Program
(PMEGP)
 Rajiv Gandhi Swavlamban Rozgar Yojna (RGSRY)
 Rural Industry Service Centre (RISC)
 Interest Subsidy Eligibility Certification Scheme
(ISEC)

13. Implementation of schemes & program
State offices (29) ,
K&VI, Corporative K&VI, Co-
Societies(30,138) operative
societies,
Entrepreneur