Khadi village industries post historic annual turnover

Khadi and Village Industries recorded historic sales of Rs 1.87 lakh crore in 2025-26, highlighting sharp growth in rural entrepreneurship, production and employment generation across India.

By Tehelka Bureau

Under the visionary leadership and guidance of Prime Minister Narendra Modi, the Khadi and Village Industries sector has surpassed an extraordinary journey of growth and transformation over the last 12 years. In the financial year 2025-26, the sales of Khadi and Village Industries products reached a historic level of Rs 1,87,105 crore, marking the highest sales figure to date and standing as a powerful testament to rural India’s growing entrepreneurship, self-reliance and economic empowerment.

Inspired by national campaigns such as ‘Aatmanirbhar Bharat’, ‘Vocal for Local’ and ‘Local to Global’, Khadi presently is no longer merely a traditional product. It has evolved into a vibrant symbol of the ‘New India’s’ self-reliant indigenous pride and rural prosperity. Creating new benchmarks in production, marketing and employment generation, the Khadi and Village Industries sector has brought new energy and direction into the country’s rural economy.

While releasing the provisional data for the financial year 2025-26 in New Delhi, KVIC Chairman Manoj Kumar stated that the Commission has established new records in the fields of production, sales and employment generation. He highlighted that, compared to the year 2013-14, a remarkable growth of 501 percent in sales, 380 percent in production and 56 percent in employment generation has been recorded over the last 12 years. Highlighting the growth of previous years, he noted that in the financial year 2024-25, sales grew by 447 percent and production by 347 percent in comparison to 2013-14. Similarly, in the financial year 2023-24, a growth of 400 percent in sales and 315 percent in production was recorded in comparison to 2013-14.

Chairman Manoj Kumar stated that this remarkable performance by KVIC is not only accelerating the resolution of ‘Viksit Bharat@2047’ but is also making a significant contribution towards positioning India among the world’s leading economies. He attributed this achievement to the effective guidance of Prime Minister Narendra Modi, the inspiration drawn from Mahatma Gandhi and the hard work of millions of artisans working in remote rural areas of the country. The KVIC Chairman further informed that while the production of Khadi and Village Industry products remained at Rs 26,109 crore in the financial year 2013-14, it surged nearly fivefold, registering a jump of 380 percent, to reach Rs 1,25,296 crore in the financial year 2025-26. While sales stood at Rs 31,154 crore in the financial year 2013-14, they surged nearly sixfold, registering an unprecedented growth of 501 percent, reaching Rs 1,87,105 crore in the financial year 2025-26, marking the highest sales figure till date.

Remarkable progress has also been noted in the Khadi textiles sector. Production, which stood at Rs 811 crore in 2013-14, soared to Rs 3,974 crore in the financial year 2025-26, marking an increase of approximately 390 percent. Simultaneously, sales increased from Rs 1,081 crore to Rs 7,869 crore, reflecting a growth of approximately 628 percent. The positive impact of the Prime Minister’s sustained promotion and propagation of Khadi is clearly evident in the sector’s growing acceptance and market expansion.

Substantial progress has also been witnessed in the village industries sector. While the production of village industry products was Rs 25,298 crore in 2013-14, it grew to Rs 1,21,322 crore in the financial year 2025-26, an increase of approximately 380 percent. Similarly, sales increased from Rs 30,073 crore to Rs 1,79,236 crore, reflecting a growth of approximately 496 percent. The village industries sector has also made a significant contribution to employment generation. While 1.19 crore people were employed in this sector in 2013-14, this figure increased to nearly 1.99 crore in the financial year 2025-26, highlighting the sector’s growing role in creating rural livelihoods. Driven by the impact of Prime Minister Narendra Modi’s campaigns such as ‘Aatmanirbhar Bharat’ and ‘Ghar-Ghar Swadeshi’, the demand for village industry products has witnessed a continuous upward trend. Consequently, this sector has emerged as a vital pillar for the expansion of rural industries, market consolidation and employment generation.

KVIC has also achieved a remarkable milestone in employment generation. While cumulative employment in activities related to Khadi and Village Industries stood at 1.30 crore in the year 2013-14, it has increased to 2.04 crore in the financial year 2025-26, marking a growth of 56 percent and highlighting KVIC’s vital role in generating rural livelihoods.

Under the Prime Minister’s Employment Generation Programme (PMEGP), 66,494 new units were established during the financial year 2025-26 and, for these units, a margin money subsidy of Rs 2,457 crore was disbursed against loans amounting to Rs 7,375 crore. Through these units, employment opportunities were provided to 7,31,434 people. Since the start of the scheme, a total of 10,84,679 units have been established, for which a margin money subsidy of Rs 29,623 crore has been disbursed against loans totalling Rs 80,705 crore. Through this initiative, employment has been provided to approximately 97.95 lakh people till date.

Under the Gramodyog Vikas Yojana, so far 51,230 electric pottery wheels, 2,46,099 bee-boxes and bee colonies, 2,674 automatic and pedal-operated agarbatti manufacturing machines, 7,669 footwear manufacturing and repair toolkits, 836 paper plate and dona-making machines, 7,571 toolkits for AC repair, mobile repair, tailoring, electricians and plumbers, 5,138 machines for turnwood, waste wood crafts and wooden toy-making, and 1,789 machines for palm jaggery, oil ghani extraction and tamarind processing have been distributed. During the financial year 2025-26, 37,769 machines, toolkits and equipment were distributed under this scheme. A review of the last four years indicated that 21,874 units were distributed in 2022-23, 29,540 in FY 2023-24, 38,904 in FY 2024-25 and 37,769 machines and equipment in FY 2025-26. Thus, under the Gramodyog Vikas Yojana, KVIC has so far distributed a total of 3,23,006 machines, toolkits and equipment, thereby making a substantial contribution towards the realisation of ‘Aatmanirbhar Bharat’.

KVIC has played a vital role in women empowerment as well. During the financial year 2025-26, 79,682 trainees received training under various KVIC training programmes. Notably, 47,382 of these trainees were women, accounting for approximately 59 percent of the total. Furthermore, under the PMEGP scheme, 28,180 women entrepreneurs established business units during 2025-26, thereby generating employment opportunities for 3,09,980 women, a statistic that emphasises the scheme’s significant role in promoting women’s entrepreneurship. With women constituting over 80 percent of the approximately 5,00,000 artisans in the Khadi sector, this domain serves as an effective vehicle for women-led economic empowerment.

There has also been a remarkable increase in the remuneration paid to artisans, which has increased from Rs 4 per hank in 2013-14 to the current rate of Rs 15 per hank, marking an increase of approximately 275 percent.

Alongside, government procurement of Khadi and Village Industries products has increased to Rs 92.08 crore, reflecting the sector’s growing acceptance and increasing institutional demand. Similarly, sales amounting to Rs 30.83 crore were recorded through exhibitions and marketing initiatives for Khadi products, thereby reinforcing market expansion and consumer engagement. Additionally, there has been a notable increase in the sales of National Flags, rising from Rs 0.87 crore in 2013-14 to Rs 2.35 crore in the financial year 2025-26. This growth emphasises the impact of mass campaigns such as ‘Har Ghar Tiranga’ in the country, as well as increasing public engagement with Khadi.