Khadi and Village Industries Commission (KVIC), Function and Feature

The Khadi and Village Industries Commission (KVIC) is a prominent organization established under the Indian Constitution, operating within the purview of the Ministry of Micro, Small and Medium Enterprises. Its inception took place through the Khadi and Village Industries Act of 1956, subsequently amended in 1965 and 2006.

Recognized as a vital constitutional, statutory, and quasi-judicial body in India, the KVIC plays a significant role in promoting rural industries and empowering local communities. This article provides an in-depth exploration of the KVIC, offering valuable insights particularly beneficial for those preparing for the IAS Exam.

Khadi and Village Industries Commission (KVIC)

Khadi & Village Industries Commission was founded as a statutory body under the Indian Government on 25 April 1965 to improve Khadi village industries in the rural areas. KVIC Scheme mainly focuses on creating more employment growth, economic growth, and promoting traditional skills and crafts. KVIC coordinates with other rural development agencies, helps secure raw materials, and assists with marketing finished products. Their efforts aim to create jobs and empower rural communities through traditional crafts and industries.

Facts about KVIC
Full-Form of KVIC	Khadi Village and Industries Commission
Year of Establishment	1957
Type of Commission	A Statutory Body
Concerned Ministry	Ministry of MSMEs
Subsumed the work of	All India Khadi and Village Industries Board
Official Website	www.kvic.gov.in

KVIC Scheme Objectives

The Khadi and Village Industries Commission (KVIC) has a multi-pronged objective focused on promoting economic growth in rural India through traditional industries. Here’s a breakdown of their key goals:

• Development of Khadi and Village Industries (KVI): Their core mission, planning, implementation, and overall growth of both Khadi (handloom textiles) and other village-based industries.
• Job creation and empowerment: KVIC strives to generate employment opportunities in rural areas, particularly for artisans and entrepreneurs. This empowers local communities by providing a source of income and fostering self-reliance.
• Coordination and Collaboration: They work closely with other agencies involved in rural development to ensure their programs align and achieve maximum impact.
• Support for artisans: KVIC facilitates access to raw materials, essential for production in these industries. They also provide training and marketing assistance to help artisans sell their finished products.
• Preservation of traditional crafts: By promoting these industries, KVIC helps keep alive the heritage and skills associated with traditional Indian crafts.

Schemes Under KVIC

The Khadi and Village Industries Commission (KVIC) interest rate subsidy scheme aims to foster rural entrepreneurship by offering financial support to individuals involved in traditional industries. This initiative targets micro, small, and medium enterprises (MSMEs) in the Khadi and village sectors, providing an interest rate subsidy on loans.

By alleviating financial burdens, the scheme stimulates the growth of rural businesses, boosts employment, and preserves traditional crafts. The interest rate subsidy enables individuals to access affordable credit, promoting the sustainability and advancement of rural industries. Consequently, this contributes to economic development and the conservation of India’s cultural heritage.

KVIC has implemented various schemes and programs to achieve these objectives. Look at the following Schemes:

• Prime Minister’s Employment Generation Programme (PMEGP): This flagship program aims to create job opportunities by promoting micro-enterprises. It offers financial assistance for establishing new ventures and expanding existing ones.
• Honey Mission: Under this initiative, KVIC encourages beekeeping activities, fostering honey production and related products. This initiative not only enhances beekeepers’ income but also aids in agricultural pollination.
• SFURTI (Scheme of Fund for Regeneration of Traditional Industries): SFURTI focuses on enhancing the competitiveness of traditional industries and artisans. It emphasizes cluster development to improve infrastructure, technology, and market access.
• Rebate on Interest for Women Entrepreneurs: KVIC provides an interest rate rebate for women entrepreneurs engaged in khadi and village industries, promoting their active involvement in economic activities.

Mission of Organs of KVIC

The KVIC comprises five organs, each with its specific mission:

• Organization: KVIC aims to undertake the development of Khadi and Village Industries (KVI) independently, relieving the government of its burden.
• Community: The objective is to empower the rural community by promoting livelihood security.
• Village Industry: The mission is to enhance productivity within the KVI sectors.
• Market: The goal is to support the sales and marketing of KVI products.
• Heritage: The objective is to preserve the socio-cultural value of KVI as a national asset.

Function of Khadi and Village Industries Commission (KVIC)

The Khadi and Village Industries Commission (KVIC) carries out the following functions:

• Coordinating with various rural development agencies for initiatives related to Khadi and Village Industries in rural areas.
• Maintaining a reserve of raw materials to support the supply chain.
• Establishing common service facilities for raw material processing.
• Assisting in marketing KVI products through artisans and other channels.
• Establishing connections with multiple marketing agencies to promote and sell KVI products.
• Encouraging research and development in the KVI sector.
• Offering solutions to KVI product-related issues by promoting research studies and enhancing competitiveness.
• Providing financial assistance to individuals and institutions involved in Khadi and Village Industries.
• Enforcing guidelines to ensure product standards and prevent the production of counterfeit products.
• Introducing projects, programs, and schemes for the development of Khadi and Village Industries.

Features of Khadi and Village Industries Commission (KVIC)

Here are the features of Khadi and Village Industries Commission (KVIC) provided below:

• Established by Law: KVIC is a statutory body formed under the Khadi and Village Industries Commission Act of 1956.
• Promotion of Traditional and Rural Industries: KVIC advocates for traditional and rural sectors such as Khadi, coir, village oil, sericulture, honey production, and handicrafts.
• Financial Assistance: KVIC extends financial aid for the establishment and enhancement of village industries through schemes like PMEGP, SFURTI, and REGP.
• Education and Training: KVIC offers education, training, and guidance to rural entrepreneurs, artisans, and unemployed youth.
• Focus on Non-Farming Activities: The organization primarily concentrates on fostering non-farming and agro-based ventures in rural regions.
• Employment Generation: KVIC actively creates job opportunities and contributes to the overall growth of the Indian economy.

Progress of KVIC

The development of Khadi and Village Industries is a significant subject often presented as an essay topic in the UPSC Mains examination. Aspirants preparing for this exam can draw insights from the latest report of the Khadi and Village Industries Commission (KVIC), titled ‘Two Years’ Progress Report (2016-2018)’, to gather important facts and figures. Key highlights from the KVIC report regarding Khadi and Village industries and the commission include:

1. Prime Minister Narendra Modi emphasized the evolving role of Khadi from being a national symbol to a catalyst for transformation.
2. The Mission Solar Charkha initiative has empowered women, fostering self-esteem and self-reliance among them.
3. Notable advancements in Khadi production and sales are evident:
   – Average Khadi production surged from 6.52% (2004-14) to 26.43% (2015-18).
   – Average Khadi sales increased from 6.62% (2004-14) to 31% (2015-18).
4. Modernization of 728 Khadi sales outlets was funded between 2015-2018, compared to none reported between 2004-2014.
5. Digitalization efforts included supplying 400 computers, hardware, and software to Khadi institutions.
6. Key milestones such as the establishment of Khaadi Haat in New Delhi and the Digital India Pavilion at the India International Trade Fair were achieved.
7. In April 2018, a larger steel charkha was inaugurated in East Champaran, commemorating Mahatma Gandhi‘s visit.
8. KVIC’s international contributions include gifting a Gandhi Charkha to Uganda on the International Day of Non-Violence.
9. KVIC envisions an artisan-centric approach to Khadi and Village industries’ transformation, emphasizing five key organs: Organization, Community, Village Industry, Market, and Heritage.
10. The KVIC e-portal was launched to facilitate Khadi institutions in promoting and selling their products across India.
11. KVIC serves as the nodal agency for developing Khadi production clusters under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI).