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Amendments in the Khadi and Village Industries Commission Act, 1956

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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Showing 394 Submission(s)
M S KUMARSWAMY
M S KUMARSWAMY 5 months 1 day ago
Water-Efficient Processing: Introduce a provision that makes the adoption of water-efficient processing techniques and installing mandatory Effluent Treatment Plants (ETPs) a prerequisite for new or upgraded Khadi/Village Industry units. This addresses the critical issue of water scarcity and ensures the industry adheres to modern environmental norms.
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M S KUMARSWAMY
M S KUMARSWAMY 5 months 1 day ago
E-Textile and Smart Fabric Support: Amendments should allow for and incentivize the development and certification of Khadi-based e-textiles or smart fabrics. This involves embedding small sensors or conductive yarns, enabling KVIC to enter high-value technical textile markets and attract younger, technology-savvy entrepreneurs to the sector.
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M S KUMARSWAMY
M S KUMARSWAMY 5 months 1 day ago
Digital Design and Prototyping: The Act should establish a clause to allocate funds for setting up digital design labs and providing software training (CAD/CAM) for artisans. This allows for quick prototyping of designs, ensuring Khadi products remain contemporary and competitive with commercial fashion trends, bridging the gap between traditional craft and modern aesthetics.
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LEENA WALAWALKAR
LEENA WALAWALKAR 5 months 1 day ago
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. The amendments proposed are in the right direction. In addition to it, the data should be computerized and help of Artificial Intelligence should also be taken. Common people should be made to participate directly and indirectly to make it success.
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PalakVipulbhaiPandya
PalakVipulbhaiPandya 5 months 1 day ago
it's a very positive Approach. we should make a poster and go village to village and we encourage the people to how to make khadi in properly simple way and we should give them resources. After that we can approach in cities and give them understand ing to buy that khadi products ,so earning also coming and villagers also motivates to make the khadi products. and we could revive a Gandhiji's thoughts and Approach of khadi. by using khadi and making khadi befits or pros are : we can recycle the products , it's unharmed, environmental free . and here cons are: it's costly and time consuming. conclusion: it's a good Approach but woth thr rigjt Approach and proper resources we can use khadi as a pur part of life.
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alyanaranu_4
alyanaranu_4 5 months 1 day ago
As a nss volunteer, I would like to know about village industries and Gather views, suggestions, and recommendations from citizens, experts, industry stakeholders, and institutions. Submit comments or suggestions on how the KVIC Act can better support innovation, inclusivity, and modernization Legal experts and KVIC officials draft the revised Khadi and Village Industries Commission (Amendment) Bill. The draft includes updates in three key areas
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Rahul Agrawal
Rahul Agrawal 5 months 2 days ago
We should create a portal just like we have for housing 99 acres, magic bricks etc so that people can post their handicrafts and make portfolio out of it. khadi bhandar should go line selling their product , just like ikea sells its product offline and online, quality control can be through feedback/rating system. Also govt institution should open their premise for mela on weekends , also these mela should have event listing on popular portals like bookmyshow or govt can create a new one. In delhi we have Dilli haat opposite AIIMS, it brings handicrafts and food , music dance of every state, we should build similar thing in most popular tourst destination. e.g Goa, we already have concept of night market, just it needed to be expanded for food and music
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