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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)
Sahil Mittal
Sahil Mittal 8 months 5 days ago
5. Strengthening Legal and Institutional Framework: The Act could be revised to include stricter regulations against the exploitation of artisans, ensuring minimum wage standards and social security benefits. Furthermore, establishing a dedicated grievance redressal mechanism within the KVIC would enhance transparency and accountability. An independent advisory board comprising artisans, industry experts, and government representatives could be instituted to oversee the implementation of these amendments. These suggestions aim to modernize the Khadi and village industries sector while preserving its cultural and economic significance. I encourage further dialogue on these points and invite contributions from other stakeholders to refine and expand upon this framework for the betterment of rural India.
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Sahil Mittal
Sahil Mittal 8 months 5 days ago
4. Incentivizing Sustainable Practices: The amendments should incorporate incentives for adopting eco-friendly production techniques, such as the use of natural dyes and organic materials. Tax benefits or subsidies could be extended to producers who adhere to environmental standards, aligning with global trends towards sustainable fashion and goods. This would not only preserve the ecological balance but also position Indian Khadi as a premium, eco-conscious brand.
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Sharwan kumar
Sharwan kumar 8 months 5 days ago
अधिनियम में वीडियो कॉल सेवा, ऑनलाइन मार्केटिंग, दिव्यांग व महिला कारीगरों के लिए विशेष प्रावधान, और ग्रामीण उद्यमियों को प्रत्यक्ष वित्तीय सहायता जैसे प्रावधान जोड़े जाएँ। इससे ग्रामीण उद्योग अधिक सुलभ, पारदर्शी, आत्मनिर्भर और समावेशी बन सकेंगे।
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Sahil Mittal
Sahil Mittal 8 months 5 days ago
3. Promotion of Market Access and Branding: The KVIC should establish a robust branding framework under the amended Act to enhance the visibility of Khadi and village industry products. This could involve creating a unified "Made in India" label for these goods, coupled with aggressive marketing campaigns during national and international trade fairs. Additionally, the Act could encourage public-private partnerships to facilitate direct market linkages, ensuring fair pricing and timely payments to artisans, thus improving their economic stability.
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Sahil Mittal
Sahil Mittal 8 months 5 days ago
2. Skill Development and Youth Engagement: To ensure the long-term viability of these industries, the amended Act should mandate comprehensive skill development programs targeting the youth. Collaborations with educational institutions and vocational training centers could be formalized to create a skilled workforce adept in both traditional methods and modern marketing strategies. Introducing digital literacy as part of the training curriculum would enable artisans to leverage e-commerce platforms, expanding their market reach both domestically and internationally.
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Sahil Mittal
Sahil Mittal 8 months 5 days ago
1. Enhancement of Financial Support and Infrastructure Development: The KVIC should be empowered with increased budgetary allocations to modernize infrastructure for Khadi and village industries. This could include the establishment of advanced training centers equipped with state-of-the-art machinery that complements traditional techniques. By investing in renewable energy solutions, such as solar-powered looms, the Commission can reduce operational costs and align with India’s sustainability goals, thereby making these industries more competitive in the global market.
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subodh bansal
subodh bansal 8 months 5 days ago
खादी मंत्रालय को कुछ Change-Maker की टीम बनाकर ज़िम्मेदारी देनी चाहिए कि वह खादी की विक्री बढ़ाने के आयडिया लगाएं।  जो Change-Maker पैशनेट हो जुनून हो और उनके पास आयडिया हो और बह खादी के लिये कुछ करना चाहते हो।  उन Change-Maker को खादी मंत्रालय को आगे लाना चाहिये। तब अच्छे परिणाम सामने दिखेंगे। सरकार तो बहुत कम कर पायी 78 वर्षों मॆं।
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