Khadi & Village Industries Commission

What Khadi & Village Industries Commission does

Khadi and Village Industries Commission (KVIC) is a statutory body of the Government of India established in 1956 under the Ministry of Micro, Small and Medium Enterprises (MSME), headquartered in Mumbai. It operates as the national nodal agency mandated to plan, promote, and organize programs for the development of khadi (hand-spun, hand-woven fabric) and village industries, serving rural artisans, micro-entrepreneurs, and consumers of traditional Indian textiles across India. The commission implements multiple centrally-sponsored schemes — including PMEGP (Prime Minister's Employment Generation Programme), SFURTI (Scheme of Fund for Regeneration of Traditional Industries), Khadi Vikas Yojana, Gramodyog Vikas Yojana, MPDA (Market Development Assistance providing 30% cash grant on prime cost), and ISEC (Interest Subsidy Eligibility Certificate at 4% p.a.) — and delivers them through 28 State KVIB boards, union territory administrations, and registered khadi-producing institutions.

The organization's product portfolio spans handwoven khadi fabrics, village industry products across mineral-, agro-, bee-keeping-, handicraft-, handloom-, rural-engineering, and biotechnology-based verticals, and ancillary services such as artisan training, khadi certification, and raw material supply. Distribution combines a physical retail network of Khadi India Lounges and Khadi India Outlets in New Delhi and Mumbai, authorized institutional sales, and a revamped Shopify-powered e-commerce portal with mobile-first design, alongside the MSME Global Mart 2.0 marketplace. The technology stack is operationally oriented: the Digital KVIC platform provides officer-level access to directorate and field-office data, kviconline.gov.in hosts scheme applications, and brand identity is protected through registered "KHADI" trademarks and product-level Geographical Indication tags such as the recently granted Ponduru Khadi GI.

KVIC's economic model is hybrid and not purely commercial. Its revenue base combines sales of khadi and village industry products through owned retail and institutional channels, government budgetary allocations and grants (including MPDA cash benefits to artisans via DBT), credit-linked subsidies routed through PMEGP and ISEC, and concessional institutional financing from a $150 million ADB loan under the Khadi Reform and Development Program (KRDP). Customer segments include rural artisans and village industry workers (employment-generation focus), PMEGP micro-entrepreneurs (credit-linked beneficiaries), and end consumers of authentic traditional textiles — with the "New India's New Khadi" positioning attempting to expand the latter toward younger, urban buyers.

Name

Khadi & Village Industries Commission

Legal name

Khadi and Village Industries Commission

Website

https://kvic.gov.in

Company type

Private

Founded year

1956

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Khadi and Village Industries Commission (KVIC) is a Government of India statutory body under the Ministry of MSME that promotes khadi fabric and rural village industries through credit-linked employment schemes, registered institutions, retail outlets, and e-commerce, serving rural artisans, micro-entrepreneurs, and consumers of traditional Indian textiles across India.

Ownership category

akta.pro rank

Product category

Traditional Handloom Textiles

NAICS

Farm Machinery and Equipment Manufacturing (333111), Nitrogenous Fertilizer Manufacturing (325311)

SIC

Farm Machinery & Equipment (3523), Agricultural Chemicals (2870)

akta.pro primary industry

Agronomy Advisory & Field Services (Retailer-Affiliated) (AFABAJAH)

akta.pro secondary industries

Farmer Cooperatives & Co-op Retail (AFABAJAB), Farm Hardware, Parts & Consumables Retail (Tools, PPE, Repair) (AFABAJAM)

Keywords

• Handloom textiles
• Village industries
• Khadi fabrics
• Rural employment programs
• Traditional handicrafts

Headquarters

HQ city

Mumbai

HQ country

India

HQ region

Asia

Offices4 records

Markets served

GTM type

B2C

Offering type

Hardware or Manufacturing

Cost components

Personnel, Supply Chain, Operations, Marketing or Sales, Infrastructure, Technology or R&D

Revenue model

1. Khadi and Village Industries Product Sales: Revenue generated through sale of khadi fabrics and village industry products through KVIC's network of Khadi India showrooms, authorized retail outlets, and institutional sales. Includes both direct retail and wholesale to registered institutions.
2. Credit-Linked Subsidy Programs: Implementation of PMEGP (Prime Minister's Employment Generation Programme) as credit-linked subsidy program where KVIC acts as nodal agency. Government provides subsidy component while bank loans constitute the primary financing for beneficiaries.
3. Government Grants and Subsidies: MPDA (Market Development Assistance) provides 30% cash benefit on prime cost as grant to Khadi producing institutions, with 30% going to artisans and 10% to karyakarthas via DBT, while ISEC scheme offers interest subsidy at 4% p.a. for bank loans to registered institutions.

Go-to-market motion2 records

Distribution channels5 records

Marketing channels4 records

Core offering

KVIC produces and sells hand-spun, hand-woven Khadi fabric and a range of Village Industries products (mineral-based, agro-based, bee-keeping, handicrafts, handloom, rural engineering, and bio-technology goods) through its own retail showrooms, e-commerce portal, and registered institution network. It also implements central government schemes including PMEGP (credit-linked employment generation), SFURTI (cluster development), MPDA (market development assistance), and ISEC (interest subsidy) to support rural artisans and micro-entrepreneurs.

Product overview

Khadi and Village Industries Commission (KVIC) operates a portfolio of traditional Indian craft products and rural industry development programs. The core offerings include Khadi (hand-spun, hand-woven fabric) and Village Industries products. The portfolio includes credit-linked programs like PMEGP (Prime Minister's Employment Generation Programme) and SFURTI for cluster development, along with support schemes like Khadi Vikas Yojana, Gramodyog Vikas Yojana, MPDA (Market Development Assistance), and ISEC (Interest Subsidy Eligibility Certificate). KVIC also operates retail outlets under the Khadi India brand including Khadi India Lounge and Khadi India Outlet in major cities, with digital platforms for online applications and e-commerce.

Differentiator

Problem solved

Functional benefit

Brands

• Khadi India Lounge: Retail outlet showcasing Khadi products, with locations in New Delhi and Mumbai.
• Khadi India Outlet
• Khadi Gramodyog Bhavan

Products and services

• Khadi Fabric Hand-spun and hand-woven Indian cloth that gained patriotic status during India's freedom struggle, representing the 'SWADESHI SPIRIT'. Described as a fabric that breathes 'Warm in Winter, Cool in Summer'.
• Village Industries Products Industries located in rural areas producing goods or rendering services where per head investment of an artisan or worker does not exceed Rs. 1.00 Lakh in plain areas and Rs. 1.5 Lakh in Hilly Areas. Covers Mineral Based, Agro Based, Bee Keeping, Handicraft, Handloom, Rural Engineering, and Bio-Technology sectors.
• PMEGP (Prime Minister's Employment Generation Programme) Credit-linked subsidy programme for creation of employment in rural and urban areas of India. KVIC acts as the nodal agency for the programme. Replaced the REGP Scheme.
• SFURTI (Scheme of Fund for Regeneration of Traditional Industries) Scheme for cluster development of traditional industries. KVIC is the nodal agency for promotion of cluster development for Khadi as well as Village Industries products.
• MPDA (Market Development Assistance) Khadi producing institutions receive cash benefit of 30% of the prime cost as grant. Of the total MPDA benefit, 30% and 10% goes to artisans and Other Karyakarthas respectively in the form of incentive under DBT. Remaining 40% goes to Khadi producing Institutions and 20% is shared with Khadi selling institutions.
• ISEC (Interest Subsidy Eligibility Certificate) Under this scheme, bank loan at concessional rate of 4% interest per annum can be availed by registered institutions of KVIC or KVIB for strengthening production of Khadi and Village Industries.
• Khadi India Lounge (Retail Showroom) Premium retail showroom showcasing Khadi products at flagship locations in New Delhi and Mumbai. Part of Khadi Gramodyog Bhavans network.
• Khadi India Outlet (Retail Showroom) Retail outlet located at 24, Regal Building, Connaught Place, New Delhi, offering Khadi and village industry products.
• Khadi India E-commerce Portal Shopify-powered e-commerce portal for Khadi India products with mobile-first design, improved product display, and interactive elements. Targets younger, digitally savvy consumers and positions Khadi as a contemporary lifestyle choice.

Quantifiable outcome

• Generated employment for 1.94 crore people with Rs 1.7 lakh crore turnover in 2024-25
• +2 more outcomes

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature4 records

Partnerships

Five partnerships are on record, tiered core and minor.

• Ministry of Micro, Small and Medium EnterprisescoreStrategic or Co-development PartnerMinistry of MSME is the parent ministry overseeing KVIC. Key initiatives launched include PMEGP 2.0 Portal, SAMADHAAN 2.0 Portal, PMS Portal, and MSME Global Mart 2.0 Portal for comprehensive MSME support.
• National Small Industries Corporation (NSIC)coreStrategic or Co-development PartnerNSIC was upgraded from Schedule 'B' to Schedule 'A' Central Public Sector Enterprise status, enhancing its role in supporting MSMEs and coordination with KVIC schemes.
• State KVIB BoardscoreImplementation/ SI/ Consulting PartnerState-level implementation partners including KVIB boards of Delhi, West Bengal, and other states/UTs for scheme delivery, institution registration, and cluster development across India.
• ShopifycoreTechnology or IntegrationModern e-commerce portal for Khadi India products powered by Shopify with mobile-first design, improved product display, and interactive elements targeting younger digitally savvy consumers.
• Yusuf Mehterally CentreminorStrategic or Co-development PartnerPartnership for employment generation initiatives in Jammu & Kashmir, with KVIC association starting stitching project at Village Nagrota providing employment to more than 250 ladies.

Scale indicators6 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Jaypore: Online-first Indian craft and textile marketplace curating regional artisan products. Directly comparable to Khadi India's Shopify e-commerce strategy: same digitally savvy, urban, design-conscious target consumer; same regional-artisan sourcing model.
• Fabindia: India's largest private retailer of traditional Indian textiles, handloom fabrics, and handicrafts. Comparable to Khadi India as a multi-channel retail brand for heritage Indian fabrics serving similar consumers, though privately owned and commercially driven rather than government-mandated.
• Co-optex: Tamil Nadu Handloom Weavers' Cooperative Society, a state-level cooperative marketing traditional Indian textiles. Comparable to KVIC's registered-institution network model: cooperative-owned production, government-supported marketing, and traditional fabric retailing.
• TRIFED (Tribal Cooperative Marketing Development Federation of India): Government body marketing tribal products through cooperatives under "Tribes India" brand. Highly comparable to KVIC: same cooperative-aggregation model, same government retail brand play (Tribes India vs Khadi India), and same rural-artisan employment-generation mandate.
• National Handloom Development Corporation (NHDC): Indian government statutory body under the Ministry of Textiles promoting handloom sector development. Closest structural peer to KVIC: both are government-backed agencies supporting traditional fabric producers with scheme-based funding, institutional networks, and retail presence.
• Anokhi: Private Indian brand for hand-block printed textiles, garments, and home furnishings rooted in traditional Rajasthani craft. Comparable as a modernized traditional-textile brand selling to urban consumers, though privately held and not subsidy-supported.
• National Small Industries Corporation (NSIC): Government of India enterprise under the same Ministry of MSME that oversees KVIC. NSIC provides marketing, credit, and technology support to MSMEs through schemes paralleling KVIC's PMEGP and SFURTI, making it the closest intra-ministry peer.
• Export Promotion Council for Handicrafts (EPCH): Government-recognized export promotion body for Indian handicrafts under the Ministry of Textiles. Comparable to KVIC's market-development role for traditional industries: scheme-based exporter support, trade fair participation, and GI/certification services for handicraft producers.
• Jaipur Rugs: One of India's largest handmade rug companies, employing ~40,000 rural artisans across 600 villages. Comparable to KVIC's village-industries model: large-scale rural artisan aggregation, traditional handcraft production, and global export reach for traditional Indian home textiles.

Broad incumbents

• Ministry of Textiles, Government of India: Sovereign ministry overseeing India's entire textile and apparel sector, including handloom, powerloom, and handicrafts. KVIC operates adjacently under the Ministry of MSME, but the Ministry of Textiles is the broader policy incumbent shaping KVIC's competitive context.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xtwitter.com/kvicindia
• YouTubeyoutube.com/channel/UCyWTKFIVYAyR21qQcoXz6kQ/featured
• Facebookfacebook.com/kvicindia
• Instagraminstagram.com/kvicindia

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Khadi & Village Industries Commission