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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)
Muthuselvam D
Muthuselvam D 7 months 3 weeks ago
We should revive the textile creations of village industries. We should hold a competition on how the design of Khadi textile products for the next year should be. The best designs should be used in Khadi company products. Customers also like new designs. If the design is the same, it will not attract people. We should change the appearance of KVIC's products every year. A competition with prize money should be announced every year on how the design of fabrics, mattresses, steel products, household appliances, etc. sold in KVI should be. The best designs should be given to the suppliers of goods to KVIC. They can use that design in their products if they wish. Of course, most of the manufacturers who supply goods to KVIC will choose innovation more. KVIC should also hold competitions with prizes related to the quality of the packaging products that will enhance the quality of the products. KVIC products will be sold well. Those involved in village industries will got good design ideas
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
Facilitating Digital Payments: Require KVIC institutions to adopt modern digital payment methods (e.g., UPI, POS) for sales and, crucially, for paying artisan wages. This improves financial traceability and reduces the use of unaccounted cash transactions.
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
Transparency in Funding Disbursal: The Act must mandate the creation of a publicly accessible online dashboard detailing fund allocation, subsidy disbursal, and utilization by KVI institutions. This fosters accountability and citizen oversight.
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
Inventory Standardization: Introduce a provision for standardized inventory and product cataloging across all KVI institutions. This uniformity is a fundamental requirement for successful integration onto major e-commerce platforms and digital marketplaces.
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
Corporate Social Responsibility (CSR) Linkage: Empower KVIC to establish a transparent mechanism to receive and manage CSR funds from corporations directly. These funds can be specifically allocated to high-impact projects like technology upgrades or social security for artisans.
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
Cluster Development Mandate: Explicitly mandate KVIC to promote and fund the creation of SFURTI-like common facility and production clusters for Village Industries. This consolidates resources, improves supply chains, and fosters collective marketing strength.
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
Protection of Traditional Processes: Include a provision to actively protect and register the traditional production process of specific, historically significant Khadi varieties (e.g., fine Muslin). This can be done under Geographical Indication (GI) status, preventing unauthorized imitation.
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
GST Compliance Support: Include a clause for KVIC to provide subsidized or free professional services for GST registration, filing, and tax compliance to Village Industries. This supports formalization and prevents rural entrepreneurs from being burdened by complex tax procedures.
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M S KUMARSWAMY
M S KUMARSWAMY 7 months 3 weeks ago
Data Sharing with MSME Ministry: Mandate KVIC to share real-time, anonymized production, employment, and sales data with the MSME Ministry and other relevant Government bodies. This ensures integrated policy planning and resource allocation at the national level.
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