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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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Unni R 5 months 2 days ago

The amendments suggested to the KVIC Act are intended to reform the sector in the following three pillars. The former is centered on diversification and technology whereby new fabrics and clean energy such as solar energy can be embraced, which will result in the growth of the sector without compromising its original nature. The second pillar advocates formalization by harmonizing village industries with the MSME Act and the contemporary classification to enable it to be able to take formal benefits. The third provides inclusivity and power as it seeks to facilitate representation of women and weaker groups in the composition of the Commission and open the sector to other entities to be seen and heard in the sector.

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Asthajhanbia 5 months 2 days ago

The amendments in the Khadi and Village Industries Commission Act, 1956, are a positive step towards empowering local artisans and promoting sustainable fashion practices. Strengthening khadi and village industries not only preserves India’s traditional craftsmanship but also supports small entrepreneurs. As a fashion brand like https://simeeraipur.in/, we deeply value these initiatives that encourage eco-friendly production and provide livelihood to rural communities. Such reforms inspire brands like ours to blend modern fashion with India’s heritage fabrics.

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Muthuselvam D 5 months 2 days ago

Like public sector companies, private sector companies should also be advised to purchase soaps, cloths, etc. required by employees at the workplace. Soap, soap liquid, work clothes, waste cottons should be made mandatory for companies. Some local industrial companies sell still lockers, tables, etc. through KVIC. Private companies should also purchase still items required by their companies for their office needs and workers from nearby KVIC stores.KVIC should also provide repainting and repair services for still items sold to private companies, if possible. This will ensure long-term use, so private companies will also buy Khadi company products.Local industry will also grow.National Handloom Day greetings should be published in all private companies and private companies and their employees should purchase one of the KVIC products. KVIC should sell the products by understanding the needs and expectations of private companies.

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Shwetha 5 months 2 days ago

being a indian we must know about our constitution and what are the laws and rules and amendments ,if we know our constitution very well we can judge people who are going in wrong way and we can give awareness to people especially we will what are benefits or things our government providing for poor people to develop.the khadi and village industries act 1956 has been amended several times mainly 1963,1985 and 2006,to strengthen rural industry development

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kunal kishore 5 months 2 days ago

Khadi and village industries commission act is a legal support for their manufacture and related activities.it has given a llegal support at all level in their production and marketing.my view is to a legal khadi board has to be established for resolve all problem related to it.

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J S Landekar 5 months 2 days ago

Very nice

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Abhishek Burathoki 5 months 2 days ago

The Khadi and Village Industries Commission Act, 1956 has been amended several times, mainly in 1961, 1987, and 2006, to modernize and strengthen rural industry development. The 1987 amendment redefined “village industry” to include only units in rural areas and set investment limits per worker. It also changed the structure and functions of the Commission, added a new fund, and allowed retrospective rules for employee benefits. Later amendments improved financial management, widened the scope of rural industries, and updated member terms. Overall, these changes aim to promote rural employment, self-reliance, and transparent governance in Khadi and village industries.

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Pragati Chouhan 5 months 2 days ago

The amendments in the Khadi and Village Industries Commission Act, 1956 are truly a positive step toward empowering rural artisans and promoting sustainable livelihoods. It’s encouraging to see more support for small craft-based entrepreneurs and handmade businesses across India. As someone running a small handmade gifting brand, The Lush Made , I genuinely appreciate how these changes can help local creators grow, stay self-reliant, and keep India’s traditional crafts alive.

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khushboo kumari 5 months 3 days ago

Good morning , Respected prime minister ji, please see , understand and think about it pdf, because this is very important for children and his parents.

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Dr Subir Kumar Bandyopadhyay 5 months 3 days ago

AMENDMENT BY LAW HAVING BASIC NEED TO VARIETY OF PLACES.AS THE NEW LAW IS NEED SO CHANGE IN LAW HAS TO BE IMPLEMENTED.HERE OFCOURSE FOR RURAL DEVELOPMENT PER CAPITA PER HEAD RS 1 LAKH HAS BEEN GRANTED & KHADI PRODUCTION IS RIGHT NOW IMPROVED TO HIGH STANDARDS AND IN IN INDIA IT IS BASIC NEED TO ENCOURAGE.SO TO DO THAT SANCTION MONEY WILL BE RIGHT NOW PERMITTED TO GIVE PRECISELY THE RURAL PEOPLE OUR SOCIETY IS FEEL THIS .BUT LAW APPEAR IS BURDEN HENCE BY AMANDMENT IT IS RIGHT NOW FEEL EMERGENCY & THAT HAS TO DONE SUCCESSFULLY IF ANY WHERE IT IS NOT DONE TILL NOW IN THIS YEAR 2025 .SO LETS HOPE BY AMANDMENT THE KHADI PRODUCTION IMMEDIATELY ENCOURAGE BY OUR SOCIETY BASICALLY FOR RURAL PEOPLE IN INDIA THEY CAN SAGE FROM UNEMPLOYMENT.JAI HIND .JAI BHATART.

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