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Khadi and Village Industries Commission (KVIC) - Detailed Information for UPSC Preparation

The Khadi and Village Industries Commission (KVIC) is a significant body established under the Indian Constitution. It operates under the jurisdiction of the Ministry of Micro, Small and Medium Enterprises. The establishment of KVIC was done under the Khadi and Village Industries Act, 1956, which has been revised twice, in 1965 and 2006. The commission is considered one of the crucial constitutional, statutory and quasi-judicial bodies in India .

This article offers a comprehensive understanding of the KVIC, which is especially useful for the IAS Exam preparation.

Key Facts about KVIC for UPSC Prelims

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 http://www.kvic.gov.in/
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Objectives of KVIC

The overarching objectives of the Khadi Village and Industries Commission, which focus on self-reliance and sustainability, include:

  1. Enhancing employment opportunities in the country.
  2. Encouraging the promotion and sale of Khadi articles.
  3. Facilitating the doctrine of self-reliance in the country by empowering the underprivileged and rural sections of the society.
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Functions of KVIC

The functions of Khadi Village and Industries Commission are as follows:

  1. KVIC plans, promotes, organizes, and implements programmes for the development of Khadi and Village Industries (KVI).
  2. It coordinates with various agencies involved in rural development for several initiatives concerning khadi and village industries in rural areas.
  3. It maintains a reserve of raw materials for further promotion in the supply chain.
  4. It aids in creating common service facilities for the processing of raw materials.
  5. It assists in the marketing of KVI products through artisans and other channels.
  6. It establishes linkages with multiple marketing agencies for the promotion and sale of KVI products.
  7. It promotes and encourages research and development in the KVI sector.
  8. It provides solutions to problems related to KVI products by promoting research study and enhancing competitive capacity.
  9. It also provides financial assistance to individuals and institutions related to the khadi and village industries.
  10. It enforces guidelines to ensure product standards to prevent the production of counterfeit products.
  11. It is authorized to introduce projects, programmes, and schemes related to khadi and village industries' development.

Progress of KVIC

The development of Khadi and Village Industries is a significant topic that can be asked in the form of an Essay in the UPSC Mains. Therefore, aspirants can take help from the latest report of KVIC, ‘Two Years’ Progress Report (2016-2018)’ for important facts.

The following are some important highlights from the KVIC report regarding the Khadi and Village industries and the commission:

  1. Prime Minister of India, Narendra Modi, stated, “Earlier it was Khadi for the nation, Khadi for fashion, now it is becoming Khadi for transformation.”
  2. The Mission Solar Charkha has empowered women by instilling self-esteem and self-reliance among them.
  3. The significant transformation in both Khadi production and Khadi sales are evident from the figures below:
    • The average Khadi production has grown from 6.52 percent in 2004-14 to 26.43 percent in 2015-18.
    • The average Khadi sales grew from 6.62 percent in 2004-14 to 31 percent in 2015-18.
    • The number of Khadi sales outlets funded for modernization stands at 728 between 2015-2018. There were no outlets reported between 2004-2014.
    • 400 computers, hardware, and software have been supplied to Khadi institutions for digitalization between 2015 and 2018.
  4. Khaadi Haat was established for the first time in 2018 in New Delhi.
  5. Digital India Pavilion was established by KVIC in the India International Trade Fair.
  6. A larger steel charkha at East Champaran was inaugurated in April 2018 to commemorate the visit of Mahatma Gandhi.
  7. KVIC gifted Gandhi Charkha to Uganda which was unveiled on the international day of non-violence.
  8. KVIC envisions an artisan-centric vision for the transformation in Khadi and Village industries.
  9. The five organs of the KVIC are mentioned in the report:
    • Organization
    • Community
    • Village Industry
    • Market
    • Heritage
  10. It has launched the KVIC e-portal for Khadi institutions to help artisans promote and sell their KVI products across India.
  11. KVIC is the nodal agency to develop clusters for Khadi production under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI).

KVIC is also the nodal agency for the implementation of the Prime Minister Employment Generation Programme (PMEGP).

The Missions of the Organs of KVIC

The KVIC has five organs, each with its mission. These are:

  1. Organization: KVIC aims to take responsibility for the development of KVI and unburden the government.
  2. Community: The goal is to enable the rural community by promoting security for life.
  3. Village Industry: The mission is to increase productivity in KVI sectors.
  4. Market: The aim is to aid the sales and marketing of KVI products.
  5. Heritage: The goal is to protect the socio-cultural value as a national asset.

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