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Amendments in the Khadi and Village Industries Commission Act, 1956

Amendments in the Khadi and Village Industries Commission Act, 1956
Start Date :
Oct 22, 2025
Last Date :
Nov 22, 2025
17:45 PM IST (GMT +5.30 Hrs)
Submission Closed

To institutionalize the development of the Khadi and Village Industries sector, the Government of India first constituted the All India Khadi and Village Industries Board in 1953. ...

To institutionalize the development of the Khadi and Village Industries sector, the Government of India first constituted the All India Khadi and Village Industries Board in 1953. This was followed by the enactment of the Khadi and Village Industries Commission Act, 1956 (No. 61 of 1956), which inter alia provides for the establishment of the Khadi and Village Industries Commission (KVIC) as a statutory body.

KVIC is entrusted with the responsibility to plan, promote, facilitate, organize, and assist in the establishment and development of Khadi and Village Industries in rural areas, in coordination with other agencies engaged in rural development.

In view of evolving market dynamics, technological advancements, and the need to further strengthen support systems, certain provisions of the KVIC Act, last amended in 2006, require updating. A comprehensive amendment is proposed to align the legislative framework with current sectoral needs and to enhance KVIC’s role as a facilitator of growth, innovation, and sustainable village industries.

To strengthen and modernize the Khadi and Village Industries sector, the Ministry of Micro, Small & Medium Enterprises (MSME) in collaboration with MyGov invites citizens to share their views on the proposed Amendments to the Khadi and Village Industries Commission Act, 1956.

The Ministry of MSME is in the process of amending the KVIC Act, 1956. In this regard, this Ministry is being consulted by various central Ministries/Department. The amendments proposed in the KVIC Act, 1956, are based on the following three key pillars:
(a) Diversification and adoption of New Technology
(b) Formalization of Village Industries
(c) Inclusivity and Institutional Strengthening

(a) Diversification and Adoption of New Technology
(i) Make provision for the adoption of any emerging form of fabric in the KVI Sector.
(ii) Adoption of clean energy, like Solar energy, in Khadi production while retaining the sector's authenticity.

(b) Formalization of Village Industries
(i) Align the "Village Industry" definition with the micro-enterprise classification under the MSME Act, based on investment and turnover thresholds.
(ii) Update the Schedule of Village Industries to allow inclusion of emerging activities aligned with market trends, rural entrepreneurship, and technology-led enterprises.
(iii) To make provisions to facilitate Udyam Registration for village industries and align the Village Industries with the National Industrial Classification Code (NIC Code).

(c) Inclusivity and Institutional Strengthening
(i) To include representation of women, weaker sections (SC/ST/OBC) and contemporary expertise in the Commission’s composition
(ii) To open up the Khadi Sector for new entities.
(iii) To include the rule making power in the functions of the Commission.

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Showing 394 Submission(s)
Dr Mohamed Rameez
Dr Mohamed Rameez 7 months 3 weeks ago
Amendment of Section 19 (Functions of the Commission) In Section 19, after clause (c), insert the following clauses: (d) To promote digital and e-commerce platforms for marketing khadi and village industry products nationally and internationally. (e) To undertake programmes for carbon-neutral, waste-free, and sustainable production practices. (f) To develop capacity-building initiatives for artisans through online training and skill certification. (g) To collaborate with State Governments, Panchayati Raj institutions, and private partners to create integrated rural clusters.
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Dr Mohamed Rameez
Dr Mohamed Rameez 7 months 3 weeks ago
Insertion of New Section 15A – Green and Inclusive Entrepreneurship Fund After Section 15, insert the following: 15A. Green and Inclusive Entrepreneurship Fund. (1) The Central Government shall establish a dedicated fund to support innovation, technology adoption, and skill development in khadi and village industries. (2) The Fund shall prioritise projects led by women, youth, and Divyaang entrepreneurs. (3) The Fund may provide soft loans, grants, or matching funds for eco-friendly and digital-based rural enterprises.
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Dr Mohamed Rameez
Dr Mohamed Rameez 7 months 3 weeks ago
In Section 2 of the principal Act— (a) For clause (d), the following shall be substituted: “(d) ‘Village Industry’ means any industry located in a rural area which produces goods or renders services with or without the use of power, in which the fixed capital investment per head of artisan or worker does not exceed such amount as may be notified by the Central Government from time to time, and which primarily promotes local raw materials, skills, or employment.” (b) After clause (e), insert— “(f) ‘Rural Area’ means any area other than a metropolitan area, and includes hilly regions, desert districts, and other notified regions where village industries can be promoted.” “(g) ‘Digital Village Industry’ means a technology-based or service-oriented enterprise operating from a rural area that utilises digital tools or e-commerce platforms for production, marketing, or service delivery.”
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Dr Mohamed Rameez
Dr Mohamed Rameez 7 months 3 weeks ago
• Incorporating incentives for sustainable, green technologies (e.g., bio-processing, bamboo/agarbatti, low-emission manufacturing) within the village industry domain. • Ensuring special provisions (and perhaps simplified application/approval procedures) for women entrepreneurs, Divyaang (differently-abled) artisans, remote/hilly areas etc. • Linking the Act/reforms more closely with state‐level policies (since industries under the Act are often implemented via state boards/units) to reduce duplication, align schemes and optimize resources.
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Dr Mohamed Rameez
Dr Mohamed Rameez 7 months 3 weeks ago
Suggested Areas for Further Reform Based on current context, some potential reform suggestions include: • Revising the fixed capital‐investment thresholds (per head of artisan/worker) periodically to reflect inflation, automation and technology cost. • Broadening the definition of “village industries” to explicitly include modern services (digital, renewable energy components) located in rural areas, while preserving the spirit of supporting grassroots artisan/entrepreneur base. • Strengthening market-linkages, e‐commerce enablement and branding for khadi/village industry products, possibly via the Act or accompanying rules/regulations. • Enhancing audit/transparency obligations of the Commission and its zonal/state entities; ensuring data on beneficiaries, assistance amounts, outcomes is publicly accessible.
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Anmol Jain
Anmol Jain 7 months 3 weeks ago
Formalization of village industries is a great point. • Help in maintaining data transparency • Gives rights to employees • Make identity of their products. • Increase reliability, which helps in business.
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Abhijeet kumar
Abhijeet kumar 7 months 3 weeks ago
Mera manna h ki hme apni apni idea se kuch yogdan dena chahte he ye achi baat h to mujhe lagta h ki hme apne budhe kisano se baat kar ke unse unki ray leni chahiye or unse puchna chahiye kyoki unhone phle bhi asi paristhiti se nipta h kyo ki phle science nahi tha pantu fir bhi wo har baat jante the har jagah science nahi h toh hme unse baat karni chahiye Thank you ki mujhe bolne ka moka mila Jai hind jai bharat aap sbhi ko mera patna and thank you again
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Komal Mohan Dave
Komal Mohan Dave 7 months 3 weeks ago
Yes As I was going through the things ...there should amendment I feel as they will get acquainted with resources and also there will b more productivity. People living in rural areas still gets less facilities,basic facilities are not proper ? How we can improve that by giving them opportunity to enhance their skills which in directly going make change. Adoptin technology even now AI can help them for giving them training for specific things which can enhance their skills inspired them and increase creativity.
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kunal kishore
kunal kishore 7 months 3 weeks ago
Khadi is a concept of Swadeshi and self dependence in manufacturing sector.an act has to be enacted for regulate and administered khadi and cottage industry.some changes has to be needed according to time. my view is to village khadi committee has to be formed for implement and execute plan at grass route level.my mantra is Khadi se samridhi tak ka safar.
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Praveen Bhandarakavthe
Praveen Bhandarakavthe 7 months 3 weeks ago
mahatma gandhiji was nation of father . he weiveing the khadhi gramdyog in Gujarat and then he was fought against the British in times of independence with vande Mataram .
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