Khadi: Govt’s Priority Fosters Double Digit Growth in Production & Sales


Focus on indigenous techniques like khadi production is getting distinctive attention from the central government. Surprising growth of khadi production and sales is an evident case of this emerging trend.


The above graph shows how khadi scenario is changing in the country w.r.t the production and sales. It has been able to renovate itself with government’s help and thus found a new path.

The below chart elaborates on the percentage growth that the industry has seen in previous years. Its evidently a new phenomena as we are entering the era of double digit growth in khadi. That’s a big-big sign of confidence in the product by consumers and producers alike.


Without a doubt, the government, especially PM Modi and cabinet ministers have pushed for using khadi as an everyday attire. So much so that after Yoga, PM Modi is pushing to make Khadi an international brand of India.

The growth is sales and production is led by continuous support of the Khadi and Village Industry Commission (KVIC) in giving assistance for promotion and infrastructural development on various fronts.

KVIC provides financial assistance under ‘Assistance for Marketing Infrastructure’ scheme.

Here’s what you should know about this assistance —

  • One can avail maximum Rs. 25 lakh and Rs. 20 lakh in urban and rural areas respectively
  • Maximum subsidy provided

    i. Institutional sales outlets — 75%

    ii. Boards outlets — 85%

    iii. KVIC outlets — 100%

  • Khadi Institutions are supported with MMDA — Modified Marketing Development Assistance at 30% rate of the prime cost of Khadi.
  • Under ‘Strengthening of Infrastructure of Existing Weak Khadi Institutions’ scheme, assistance is also extended for renovation & modernization of sales outlets as Departmental Sales Outlets (DSOs) and State KVIBs.

In order to know more, you can visit the Ministry’s website here and use the opportunity to enhance your business and help grow our indigenous clothing.