Khadi and Village Industries Sector surpasses turnover of Rs 1.87 lakh crore


Shailender Kumar Pandey

New Delhi, 27 May

The Khadi and Village Industries sector has completed an extraordinary journey of growth and transformation over the last 12 years. In the financial year 2025–26, sales of Khadi and Village Industries products reached a historic Rs. 1,87,105 crore — the highest sales figure to date — standing as a powerful testament to rural India’s growing entrepreneurship, self-reliance, and economic empowerment. Inspired by national campaigns such as ‘Aatmanirbhar Bharat’, ‘Vocal for Local’, and ‘Local to Global’, Khadi is no longer merely a traditional product; it has evolved into a vibrant symbol of New India’s self-reliant, indigenous pride and rural prosperity. By creating new benchmarks in production, marketing, and employment generation, the sector has brought fresh energy and direction to the country’s rural economy.

While releasing provisional data for the financial year 2025–26 at KVIC’s office at Gandhi Darshan, Rajghat, New Delhi, KVIC Chairman Shri Manoj Kumar stated that the Commission has established new records in production, sales, and employment generation. He highlighted that, compared to 2013–14, remarkable growth of 501 per cent in sales, 380 per cent in production, and 56per centt in employment generation has been recorded over the last 12 years. He further noted that in 2024–25, sales grew by 447 per cent and production by 347 per cent compared to 2013–14; similarly, in 2023–24, sales grew by 400 per cent and production by 315 per cent over the same base year.

Chairman Manoj Kumar stated that this remarkable performance is not only accelerating progress toward ‘Viksit Bharat@2047’ but also making a significant contribution toward positioning India among the world’s leading economies. He attributed this achievement to the effective guidance of Prime Minister Shri Narendra Modi, the inspiration drawn from Mahatma Gandhi, and the hard work of millions of artisans in the country’s remote rural areas. He further noted that while production of Khadi and Village Industries products stood at Rs. 26,109 crore in 2013–14, it surged nearly fivefold — a jump of 380 per cent — to reach Rs. 1,25,296 crore in 2025–26. Similarly, sales rose from Rs. 31,154 crore in 2013–14 to Rs. 1,87,105 crore in 2025–26, reflecting an unprecedented growth of 501 per cent and marking the highest sales figure recorded to date.

Remarkable progress has also been seen in the Khadi textiles sector. Production, which stood at Rs. 811 crore in 2013–14, soared to Rs. 3,974 crore in 2025–26 — an increase of approximately 390 per cent. Sales similarly rose from Rs. 1,081 crore to Rs. 7,869 crore, reflecting a growth of approximately 628 per cent. The Prime Minister’s sustained promotion of Khadi is clearly reflected in the sector’s growing acceptance and expanding market reach.

Substantial progress has also been witnessed in the village industries sector. Production grew from Rs. 25,298 crore in 2013–14 to Rs. 1,21,322 crore in 2025–26, an increase of approximately 380 per cent, while sales rose from Rs. 30,073 crore to Rs. 1,79,236 crore — a growth of approximately 496 per cent. The sector has also made a significant contribution to employment generation: the number of people employed grew from 1.19 crore in 2013–14 to nearly 1.99 crore in 2025–26, highlighting its growing role in creating rural livelihoods. Driven by campaigns such as ‘Aatmanirbhar Bharat’ and ‘Ghar-Ghar Swadeshi’, demand for village industry products has risen consistently, establishing the sector as a vital pillar of rural industrial expansion, market consolidation, and employment generation.

KVIC has also achieved a remarkable milestone in employment generation. Cumulative employment in Khadi and Village Industries activities grew from 1.30 crore in 2013–14 to 2.04 crore in 2025–26 — a growth of 56 per cent — underscoring KVIC’s vital role in generating rural livelihoods.

Under the Prime Minister’s Employment Generation Programme (PMEGP), 66,494 new units were established during 2025–26, with a margin money subsidy of Rs. 2,457 crore disbursed against loans amounting to Rs. 7,375 crore. These units provided employment to 7,31,434 people. Since the scheme’s inception, a total of 10,84,679 units have been established, with a cumulative margin money subsidy of Rs. 29,623 crore disbursed against loans totalling Rs. 80,705 crore, generating employment for approximately 97.95 lakh people to date.

Under the Gramodyog Vikas Yojana, a total of 3,23,006 machines, toolkits, and pieces of equipment have been distributed so far, including 51,230 electric pottery wheels, 2,46,099 bee-boxes and bee colonies, 2,674 automatic and pedal-operated agarbatti manufacturing machines, 7,669 footwear manufacturing and repair tool-kits, 836 paper plate and dona making machines, 7,571 tool-kits for AC repair, mobile repair, tailoring, electrical work, and plumbing; 5,138 machines for turnwood, waste wood crafts, and wooden toy making; and 1,789 machines for palm jaggery extraction, oil ghani processing, and tamarind processing. During 2025–26 alone, 37,769 machines, toolkits, and equipment were distributed. Over the last four years, distributions stood at 21,874 units in 2022–23, 29,540 in 2023–24, 38,904 in 2024–25, and 37,769 in 2025–26, making a substantial contribution toward the realisation of ‘Aatmanirbhar Bharat’.

KVIC has also played a vital role in women’s empowerment. During 2025–26, 79,682 trainees received training under various KVIC programmes, of whom 47,382 — approximately 59 per cent — were women. Under the PMEGP scheme, 28,180 women entrepreneurs established business units during the year, generating employment for 3,09,980 women, highlighting the scheme’s significant role in promoting women’s entrepreneurship. With women comprising over 80 per cent of the approximately five lakh artisans in the Khadi sector, this domain serves as an effective vehicle for women-led economic empowerment.

Artisan remuneration has also seen a remarkable increase, rising from Rs. 4 per hank in 2013–14 to Rs. 15 per hank currently — a growth of approximately 275 per cent.

Government procurement of Khadi and Village Industries products has grown to Rs. 92.08 crore, reflecting the sector’s increasing institutional acceptance. Sales worth Rs. 30.83 crore were recorded through exhibitions and marketing initiatives, reinforcing market expansion and consumer engagement. Sales of National Flags have also risen notably, from Rs. 0.87 crore in 2013–14 to Rs. 2.35 crore in 2025–26, underscoring the impact of mass campaigns such as ‘Har Ghar Tiranga’ and the growing public connection with Khadi.