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Ministry of Micro, Small and Medium Enterprises (MSME)

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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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Ayesha Sharma 5 months 3 days ago

The definition of “village industry” was amended: the Act originally had a lower capital investment threshold (e.g., Rs 15,000) and only in specified areas; by the 1987 amendment the clause changed to include industry located in a rural area, with fixed capital investment per head being up to Rs 1 lakh (or higher in hilly areas) as may be notified. • The phrase “rural area” was defined/clarified: the Act introduced a definition for “rural area” meaning any village, and includes area comprised in any town, the population of which does not exceed a figure (for example 20,000) or such other figure as the Central Government may specify. • The composition of the Khadi and Village Industries Commission (KVIC) was changed: ex-officio members like the CEO and Financial Adviser were included; also Non-official members from expert disciplines.

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Deepali Hingne adv 5 months 3 days ago

स्वदेशी खादी ,आत्मनिर्भर गाव उद्योग खादी - आत्मा है वस्त्र पोशाख का 2amend - cloth industry specially khadi village - tourism economy .do visit statewise .cross diversity 2introduce verity via diversity .village to village compain by help of govt / NGO or private or educational -ask new ideas along with certificates or simply awarded if possible do statewise- bring change on temporary base so easy to capture changes gonna thorugh cause world change not only speedy way but also change in aspect to wear climate gonna change so according to changing climatic elements Confort Easy Simple wearing which also protect from - Seasonal changes health perspective hot climate - fine structure of cloth warm or in rainy season then - Khadi made Blankets .. 2sleep well protect body temperature...

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Ankit Sharma 5 months 3 days ago

First of all, we have to update the definition of village industry. We have to include small enterprises using eco-friendly, local resources even in semi-rural areas. We should also add new chapter on Digital Empowerment of Khadi and Village Industries. * Build a national e-commerce platform for khadi and village products. We should also establish a Khadi & Village Innovation and research Centre (KVIRC) and promote designs collaborations with NIFT, IITs and local design schools. We can include new objective to attract and train youth in Khadi and Village Industries. Government can mandate atleast one-third women represented in the commission and state boards. They can create a Women artisans Empowerment fund for Self Help Groups (SHGs). Special provisions for tribal and backward areas. Thank You, Ankit Sharma

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Ankit Sharma 5 months 3 days ago

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PrernaSharma 5 months 3 days ago

It offers economic empowerment and sustainable development through employment generation and promoting rural entrepreneurship and it provides loans, training, and infrastructure to help artisans and small businesses in villages thrive.

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Atul 5 months 3 days ago

Subject: Request to implement internet filtering and block adult websites on social network Sir/Madam, Main aapko vinamra anurodh kar raha hoon ki hamare [school/hostel/colony/PC-room] ke network par aise 18+ websites ko block karne ka prabandh kiya jaaye jo yuvaon ki soch ko prabhavit kar rahi hain aur ladkiyon ki izzat par bura asar daal rahi hain. Isse kai samajik aur manovaigyanik samasyaen paida ho rahi hain, jaise disrespect towards girls aur kabhi-kabhi serious crimes tak ka rasta. Kripya karke network-level filtering (e.g., OpenDNS/CleanBrowsing), SafeSearch, aur necessary parental controls jald se jald lagu karne ka karyavahi karein. Main ismein sahayata dene ke liye taiyar hoon. Dhanyavaad

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Atul 5 months 3 days ago

Subject: Request to implement internet filtering and block adult websites on [School/Community] network Sir/Madam, Main ______ (Naam) aapko vinamra anurodh kar raha hoon ki hamare [school/hostel/colony/PC-room] ke network par aise 18+ websites ko block karne ka prabandh kiya jaaye jo yuvaon ki soch ko prabhavit kar rahi hain aur ladkiyon ki izzat par bura asar daal rahi hain. Isse kai samajik aur manovaigyanik samasyaen paida ho rahi hain, jaise disrespect towards girls aur kabhi-kabhi serious crimes tak ka rasta. Kripya karke network-level filtering (e.g., OpenDNS/CleanBrowsing), SafeSearch, aur necessary parental controls jald se jald lagu karne ka karyavahi karein. Main ismein sahayata dene ke liye taiyar hoon. Dhanyavaad

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kunal kishore 5 months 3 days ago

Khadi and village industries commission act is a legal support for promote khadi as a Swadeshi product.it is a way to make rules and regulate all activity for adopt at large scale.my view is to make youth khadi committee at grass route level.second school and college has to be included for adopt khadi at grass route level.

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Muthuselvam D 5 months 3 days ago

For the growth of rural industries, license and laws should be simplified. It is not appropriate to apply the rules and regulations laid down for starting and running an MSME to rural industries. A separate ministry and policies should be created for Micro Enterprises. Just as the laws for MSMEs are different from those for large corporations, a separate policy should be created for informal Micro Industries. Special attention should be paid to the development of rural industries. The investment amount for rural industries is less than the cost of completing the procedures for MSMEs. Khadi village industries should be considered as informal micro industries and separate registration, documentation rules, operating rules, licensing, and dissolution policies should be formulated. This will encourage self-employed entrepreneurs who want to start village industries.Simplifying the laws and licenses for rural industries that make women entrepreneurs

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Muthuselvam D 5 months 3 days ago

The problems of access to finance faced by Khadi village industries should be removed.Among micro enterprises, there are many village industries that operate in an informal nature. We have seen many village industries that have been formed as families or groups to cope with the family economic situation.There are fewer customers and market circles.Who will come to the bank to start informal village industries? If loan conditions such as documents, projects, and targets are imposed, who will come to the bank. We should understand the nature of informal micro enterprises that can be started with low investment and create separate policies to provide financial services. Loan procedures should be simplified to help informal rural industries grow. Why should the rules for companies that ask for loans of up to Rs 2 crore be followed for businesses that can be started within Rs 20,000?. creat seperate ministry of Micro industries or separate Poilcy for village enterprises

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