In a written reply to the Lok Sabha, Minister of State for MSME Sushri Shobha Karandlaje outlined a comprehensive framework of schemes through which KVIC supports Khadi institutions and artisans across the country. The focus remains on modernization, affordability of credit, improved workspaces, and stronger market linkages.
One of the flagship initiatives is the Modified Market Development Assistance (MMDA) scheme. Under this programme, financial assistance is provided to modernize and computerize Khadi sales outlets. It also supports value addition by adopting the latest technologies in post-fabric processes and enables technology upgradation to improve product quality and competitiveness.
Another critical intervention is the Interest Subsidy Eligibility Certificate (ISEC) scheme. Issued by KVIC to eligible Khadi institutions, ISEC allows access to credit at a highly concessional interest rate of just 4 percent per annum. The subsidy applies to both capital investment and working capital requirements, helping institutions manage finances sustainably while scaling operations.
To improve the working conditions of artisans, KVIC implements the Workshed Scheme for Khadi Artisans. The scheme focuses on providing improved workspaces for spinning and weaving activities. It also includes storage facilities for raw materials, tools, accessories, and finished or semi-finished goods, directly enhancing productivity and occupational safety.
Reviving Weak Khadi Institutions
Recognising that several Khadi institutions face structural and financial challenges, KVIC provides need-based infrastructural assistance to weak, sick, or D-category institutions. These interventions are designed to revive units with viable potential and help them transition towards self-sustainability.
In addition, marketing assistance is extended for the renovation of sales outlets. This includes upgrading retail spaces, introducing contemporary designs, and developing ready-to-use Khadi products that appeal to modern consumers while preserving traditional craftsmanship.
Expanding Market Linkages and Brand Visibility
Beyond financial aid, KVIC has adopted a multi-pronged approach to strengthen market linkages and improve artisans’ incomes. A major step in this direction is the operation of KVIC’s own e-commerce platform, khadiindia.gov.in, which provides nationwide access to authentic Khadi products.
The commission also organises a wide range of exhibitions, including national, zonal, state, district-level and special exhibitions. These platforms allow Khadi institutions and artisans to directly connect with consumers, generate sales, and understand evolving market trends.
KVIC actively encourages participation in prestigious events such as the Indian International Trade Fair, as well as international trade fairs abroad. Such exposure not only boosts sales but also positions Khadi as a global, sustainable and culturally rich brand.
Promoting Khadi Through Events and Media
During celebrations like Khadi Mahotsav, special sales drives are organised across the country to increase visibility and consumer engagement. KVIC also sponsors marketing programmes at premier institutions such as IIT Madras and IIM Tiruchirappalli, tapping into youth-centric platforms to widen Khadi’s appeal.
The unique features of Khadi products eco-friendliness, sustainability, and handcrafted quality are promoted extensively through print and electronic media. The ‘Khadi India’ brand is further strengthened by sponsoring events conducted by independent organisations, helping create long-term brand awareness and market reach.
Government’s Commitment to Artisans
The government maintains that these coordinated efforts reflect its commitment to protecting livelihoods, generating rural employment, and preserving India’s heritage industries. Regular monitoring by KVIC ensures transparency and accountability in scheme implementation.
As India pushes towards inclusive growth and sustainable development, Khadi continues to serve as a symbol of self-reliance and grassroots entrepreneurship. With enhanced digital integration and market-driven reforms, KVIC’s initiatives are expected to significantly improve income stability for artisans in the coming years.