Khadi and Village Industries Commission (KVIC)

KVIC stands for Khadi and Village Industries Commission. It is an important organization in India that helps rural areas grow and creates jobs. It operates under the Ministry of Micro, Small, and Medium Enterprises. KVIC’s goal is to improve the economy of villages by promoting khadi and village industries.

KVIC has launched several initiatives, like the Prime Minister’s Employment Generation Programme. These initiatives support people starting their own businesses and create employment opportunities. KVIC provides training and assistance with selling products. 

Khadi and Village Industries Commission (KVIC)

What is the Khadi Village Industries Commission?

Khadi Village Industries Commission (KVIC) is a statutory body of the GoI. It operates under the Ministry of Micro, Small, and Medium Enterprises (MSME).

  • KVIC was established in April 1957 by an Act of Parliament, the Khadi and Village Industries Commission Act, 1956.
  • KVIC’s mission is to promote khadi and village industries in India. It does this by providing financial & marketing assistance and training to village industries.
  • Khadi is a hand-spun and hand-woven fabric made from cotton or wool. It is a traditional Indian textile that has been produced for centuries. 
  • The village industries produce a wide range of products. This includes food, handicrafts, and other goods.
  • KVIC provides employment to millions of people. It assists in generating income in rural areas. 
  • KVIC also helps to preserve India’s traditional handicrafts and textiles.

Historical Background of the Khadi Village Industries Commission

he Khadi and Village Industries Commission (KVIC) was set up in April 1957. It was set up by the Khadi and Village Industries Commission Act 1956. Its roots can be traced back to the Indian independence movement.

  • Mahatma Gandhi advocated the use of khadi. It was seen as a symbol of self-reliance and a means to uplift rural communities. 
  • The Swadeshi Movement and the promotion of indigenous industries were central to his ideology. The establishment of KVIC was a significant step in realizing these objectives. 
  • The All India Khadi and Village Industries Board was established in 1942. 
    • It was responsible for promoting khadi and village industries during the British colonial period. 
    • With time, the KVIC took over the work of the board.

About Digital KVIC

Digital KVIC was launched in 2017 to make it easier for people to access and buy khadi and village industry products. KVIC has launched a number of digital initiatives in recent years. 

  • The KVIC website provides information on a wide range of topics. This includes government schemes and training programs. 
    • The website also has an online store where people can buy khadi and village industry products.
  • KVIC has also launched a mobile app. The app provides access to the same information and services that are available on the website. 
    • The app also allows users to track their orders and make payments.
  • Digital KVIC has many advantages, such as better customer service, improved efficiency, and increased transparency.
  • Since its launch, Digital KVIC has made significant progress.
    • It has increased online sales by 20% and decreased order processing time by 50%.
    • It has helped boost the growth of the khadi and village industries sector.

Objectives of the Khadi Village Industries Commission

  • To promote khadi and village industries of the country.
  • To provide financial assistance, training, and marketing support to the village industry entrepreneurs.
  • To create employment opportunities in rural areas.
  • To preserve India’s traditional handicrafts and textiles.

Key Updates and Facts about the Khadi Village Industries Commission

Here are some facts about Khadi Village Industries Commission (KVIC):

  • KVIC was established in April 1957.
  • It is a statutory body under the Ministry of Micro, Small, and Medium Enterprises (MSME).
  • The mission of KVIC is to promote khadi and village industries in India.
  • KVIC plays an important role in the Indian economy.
  • It has helped to create millions of jobs in rural areas.
  • It has helped to preserve India’s traditional handicrafts and textiles.

Some of the latest updates on the Khadi Village Industries Commission (KVIC) are:

  • KVIC has launched a new scheme to promote the use of khadi in government procurement. The scheme is named the “Khadi Procurement Policy.” 
    • It aims to increase the use of khadi in government procurement by 20% by 2025.
  • KVIC has launched the “Khadi India” website to promote khadi and village industry products. 
  • In 2022, KVIC launched a new quality assurance scheme for the products. 
    • The scheme aims to ensure that the products meet the highest standards of quality.

Organs of the Khadi Village Industries Commission

Board of Directors

The Board of Directors is the highest decision-making body of KVIC. It is composed of 15 members, including the Chairman and the Vice-Chairman. The Board formulates policies and strategies for the development of village industries.

General Manager

The General Manager is the chief executive officer of KVIC. He handles the implementation of the policies and strategies of the Board. The General Manager is assisted by a team of officers and staff.

Zonal Offices

The Zonal Offices are located in major cities across India. They are responsible for providing financial and marketing support in their respective regions.

State Offices

The State Offices are located in all the states of India. They coordinate the activities of the Zonal Offices and the District Offices. 

District Offices

The District Offices are located in all the districts of India. They provide direct assistance to the village industries in their respective districts.

Important Schemes of the Khadi Village Industries Commission

SFURTI

  • SFURTI stands for Scheme of Fund for Regeneration of Traditional Industries. 
  • The Ministry of MSME launched it in 2005 with the view to promote cluster development. 
  • KVIC is the nodal agency for the promotion of cluster development of Khadi and village industry products.

PMEGP

  • PMEGP stands for Prime Minister’s Employment Generation Programme. 
  • The Ministry of MSME launched PMEGP KVIC in 2000. 
  • It aims to promote self-employment in rural and urban areas. 
  • KVIC is the nodal agency for the implementation of PMEGP in the village industry sector.

SPIN

  • SPIN stands for Scheme of Skilled Person’s Income Generation Network. 
  • The Ministry of MSME launched it in 2016. 
  • It aims to provide training and employment opportunities to skilled persons in the village industries sector. 
  • KVIC is the nodal agency for the implementation of SPIN.

Other Important Schemes 

  • The Khadi Production Programme
  • The Village Industries Programme
  • The Khadi Gramodyog Vikas Yojana
  • The Khadi Marketing and Development Programme
  • The Khadi Technology Upgradation Programme

Role of Khadi Village Industries Commission in the Economy

Employment generation

  • KVIC plays a significant role in employment generation in India. 
  • In 2021-22, KVIC provided employment to over 4.5 lakh people directly and indirectly.

Income generation

  • KVIC helps generate income in rural areas. The income generated by village industries helps to improve the livelihood of people in rural areas. 
  • In 2021-22, KVIC generated a revenue of over Rs. 3,000 crores.

Exports

  • KVIC helps to promote exports of khadi and village industry products. 
  • In 2021-22, KVIC exported village industry products worth over Rs. 200 crores.

Preservation of traditional handicrafts and textiles

  • KVIC helps to preserve India’s traditional handicrafts and textiles. 
  • KVIC provides training in skill development to young people. The training aims to create entrepreneurs and offer self-employment opportunities.
    • In 2021-22, KVIC trained over 1 lakh artisans and weavers.
  • KVIC also provides financial & marketing support to artisans and weavers. 

Sustainable development

  • KVIC encourages the use of renewable energy sources. It promotes the adoption of environment-friendly practices in khadi and village industries. 
  • In 2021-22, KVIC used over 100 MW of renewable energy for its operations.

Accomplishments & Progress of the Khadi Village Industries Commission

KVIC has achieved significant milestones in its journey of promoting the village industries. Some notable accomplishments include:

  • Increased production and sales of khadi products.
  • Expansion of market reach through e-commerce platforms.
  • Recognition of traditional crafts and skills at national and international levels.
  • Empowerment of women through self-help groups and women-centric initiatives.

Here are some of the key progresses made by KVIC in recent years:

  • KVIC has increased the production of khadi by 20% in the last five years. 
    • It has increased exports of products by 15% in the last five years.
  • KVIC has improved the quality of products by introducing new quality assurance standards.
  • KVIC has expanded the reach of village industry products by opening new outlets and by promoting online sales.
  • KVIC has strengthened the marketing of products by participating in trade fairs and exhibitions. It has also launched new marketing campaigns.

FAQs

When was KVIC established?

KVIC was established on April 1, 1957.

What is the Khadi and Village Industries Commission (KVIC)?

KVIC is a statutory body formed by the Government of India under the Khadi and Village Industries Commission Act of 1956. It promotes the development of Khadi and village industries in rural areas to create employment and strengthen the rural economy.

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