What is KVIC (Khadi and Village Industries Commission)?
The Khadi and Village Industries Commission (KVIC) is a statutory body established by the Government of India to promote and facilitate the development of khadi and village industries in rural areas. Founded on April 25, 1957, the KVIC plays a pivotal role in fostering economic growth, generating employment opportunities, and preserving traditional crafts and skills.
Khadi, a hand-spun and hand-woven fabric, holds historical significance in the context of India's freedom movement. Mahatma Gandhi promoted the use of khadi as a means to promote self-reliance and economic independence during the struggle for independence. The KVIC was established to carry forward this vision by promoting khadi and various village industries.
Important facts about KVIC for UPSC Prelims
Key Aspect |
Details |
Full-Form of KVIC |
Khadi Village and Industries Commission |
Year of Founding |
1957 |
Commission Type |
Statutory Body |
Ministry Oversight |
Ministry of MSMEs |
Incorporation of |
All India Khadi and Village Industries Board |
Official website |
Functions of KVIC
The Khadi Village and Industries Commission performs the following functions:
- Planning, promoting, organizing, and implementing programs for the development of Khadi and Village Industries (KVI).
- Coordinating with various agencies engaged in rural development for initiatives related to Khadi and village industries.
- Maintaining a reserve of raw materials to facilitate the supply chain.
- Establishing common service facilities for processing raw materials.
- Assisting in the marketing of KVI products through artisans and other channels.
- Establishing connections with multiple marketing agencies for product promotion and sales.
- Encouraging and supporting research and development in the KVI sector.
- Addressing challenges associated with KVI products through research studies and capacity enhancement.
- Providing financial assistance to individuals and institutions involved in Khadi and village industries.
- Ensuring compliance with product standards to prevent the production of counterfeit products.
- Proposing and implementing projects, programs, and schemes for the development of Khadi and village industries.
Role of Khadi Village Industries Commission in the economy
Here are some of the roles of KVIC in the development of the Indian economy:
Employment generation
- KVIC plays an important role in generating employment in India.
- In 2021-22, KVIC provided jobs to over 4.5 lakh people both directly and indirectly.
Income generation
- KVIC helps generate income in rural areas. The income from village industries improves the livelihood of rural populations.
- In 2021-22, KVIC generated revenue exceeding Rs. 3,000 crores.
Exports
- KVIC promotes the export of khadi and village industry products.
- In 2021-22, KVIC exported products worth over Rs. 200 crores.
Preservation of traditional handicrafts and textiles
- KVIC helps preserve India's traditional handicrafts and textiles.
- It provides skill development training to young people, creating opportunities for entrepreneurship and self-employment.
- In 2021-22, KVIC trained over 1 lakh artisans and weavers.
- KVIC also provides financial and marketing support to artisans and weavers.
Sustainable development
- KVIC encourages the use of renewable energy sources and promotes eco-friendly practices in khadi and village industries.
- In 2021-22, KVIC used over 100 MW of renewable energy for its operations.
Departments of the Khadi and Village Industries Commission
The departments of the Khadi Village Industries Commission (KVIC) include:
Board of directors
The board of directors is the main decision-making authority of KVIC. It consists of 15 members, including the chairman and vice-chairman. The board is responsible for creating policies and strategies for the growth of village industries.
General manager
The general manager serves as the chief executive officer of KVIC, overseeing the implementation of the board's policies and strategies. The general manager is supported by a team of officers and staff.
Zonal offices
Zonal offices are situated in major cities across India and provide financial and marketing support within their specific regions.
State offices
State offices are established in every state of India and are responsible for coordinating the activities of zonal offices and district offices.
District offices
District offices are located in all districts of India, offering direct support to village industries within their local areas.
Key objectives of KVIC
- Promotion of khadi: KVIC is dedicated to the promotion of khadi, encouraging its production and consumption. Khadi is not just a fabric; it represents a sustainable and eco-friendly way of life.
- Development of village industries: Beyond Khadi, KVIC works towards the development of various village industries. These industries span sectors such as agro-based and small-scale industries, aiming to create sustainable livelihoods in rural areas.
- Employment generation: KVIC is instrumental in generating employment opportunities, particularly in rural and semi-urban areas. By supporting traditional crafts and industries, it contributes to the socio-economic development of these regions.
- Preservation of traditional skills: KVIC places an emphasis on preserving and promoting traditional skills and crafts. By doing so, it ensures that the rich cultural heritage of India is not only maintained but also becomes a source of economic empowerment for local communitie.
- Market promotion: KVIC works towards creating market linkages for products from Khadi and village industries. This involves marketing support, both domestically and internationally, to enhance the visibility and sales of products created by artisans and entrepreneurs.
- Financial assistance: The commission provides financial assistance to individuals, institutions, and organisations involved in khadi and village industries. This support is crucial in overcoming financial barriers and promoting entrepreneurship in rural areas.
KVIC has implemented various schemes and programs to achieve these objectives. Some notable ones include:
- Prime Minister's employment generation programme (PMEGP): This flagship program aims to generate employment opportunities by promoting micro-enterprises. It provides financial assistance for setting up new ventures and expanding existing ones.
- Honey Mission: Under this initiative, KVIC promotes bee keeping activities, creating avenues for honey production and related products. This not only boosts the income of bee keepers but also contributes to agricultural pollination.
- SFURTI (scheme of fund for regeneration of traditional industries): SFURTI is designed to enhance the competitiveness of traditional industries and artisans. It focuses on cluster development to improve infrastructure, technology, and market access.
- Rebate on Interest for women entrepreneurs: KVIC provides a rebate on interest rates for women entrepreneurs engaged in khadi and village industries, encouraging their active participation in economic activities.
KVIC provides a user-friendly digital platform for individuals and entrepreneurs to access information, schemes, and resources offered by the Khadi and Village Industries Commission (KVIC). Through KVIC online, applicants can explore KVIC loan programs, such as the Prime Minister's employment generation programme (PMEGP), facilitating convenient application processes and tracking. These loans allow aspiring entrepreneurs to establish or expand micro-enterprises, fostering employment and economic development. KVIC's online initiatives streamline access to financial assistance, promoting inclusivity and applying technology to support the growth of khadi and village industries across India.
Features of KVIC
Some of the notable features of KVIC are:
- It is a statutory body established by the Khadi and Village Industries Commission Act 1956.
- KVIC promotes traditional and rural industries such as Khadi, coir, village oil, sericulture, honey production, and handicrafts.
- Provides financial assistance for the establishment and development of village industries through schemes like PMEGP, SFURTI and REGP.
- KVIC also provides education, training and guidance to rural entrepreneurs, rural artisans and unemployed youth.
- It is primarily focused on promoting non-farming and agro-based activities in rural areas.
- KVIC creates employment opportunities and contributes to the growth of the Indian economy
Schemes under KVIC
The Khadi and Village Industries Commission (KVIC) interest rate subsidy scheme aims to promote rural entrepreneurship by providing financial assistance to individuals engaged in traditional industries. This initiative supports micro, small, and medium enterprises (MSMEs) in the khadi and village sector by offering a subsidy on interest rates for loans.
By reducing the financial burden on entrepreneurs, the scheme encourages the growth of rural businesses, fosters employment, and preserves traditional crafts. The interest rate subsidy empowers individuals to access affordable credit, facilitating the sustainability and development of rural industries, thereby contributing to economic upliftment and the preservation of India's rich cultural heritage.
KVIC has implemented various schemes and programs to achieve these objectives. Some notable ones include:
- Prime Minister's employment generation programme (PMEGP): This flagship program aims to generate employment opportunities by promoting micro-enterprises. It provides financial assistance for setting up new ventures and expanding existing ones.
- Honey Mission: Under this initiative, KVIC promotes bee keeping activities, creating avenues for honey production and related products. This not only boosts the income of bee keepers but also contributes to agricultural pollination.
- SFURTI (scheme of fund for regeneration of traditional industries): SFURTI is designed to enhance the competitiveness of traditional industries and artisans. It focuses on cluster development to improve infrastructure, technology, and market access.
- Rebate on Interest for women entrepreneurs: KVIC provides a rebate on interest rates for women entrepreneurs engaged in khadi and village industries, encouraging their active participation in economic activities.
KVIC provides a user-friendly digital platform for individuals and entrepreneurs to access information, schemes, and resources offered by the Khadi and Village Industries Commission (KVIC). Through KVIC online, applicants can explore KVIC loan programs, such as the Prime Minister's employment generation programme (PMEGP), facilitating convenient application processes and tracking. These loans allow aspiring entrepreneurs to establish or expand micro-enterprises, fostering employment and economic development. KVIC's online initiatives streamline access to financial assistance, promoting inclusivity and applying technology to support the growth of khadi and village industries across India.
Eligibility criteria for KVIC Loan
The KVIC loan is available to:
- Individuals aged at least 18 years with an 8th-grade pass certificate.
- Self-Help Groups (SHGs)
- Registered and Cooperative Societies
- Charitable Trusts, and various other entities.
How to avail loans from banks under the KVIC scheme
- Visit the KVIC website at https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp
- Complete the online application form provided. Input your personal details including name, Aadhaar Number, date of birth, address, bank information, business particulars, etc.
- Save the application after filling it out.
- Upload necessary documents such as passport-sized photo, Aadhaar card, population certificate, EDP training certificate, and higher education certificate.
- Finally, click on the 'Final Submission of Application to Sponsoring Agency' button.
Upon final submission, an application ID will be generated and sent to your registered email address, confirming the successful submission of your loan application. You can print this page for future reference.