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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)
Muthuselvam D
Muthuselvam D 5 months 1 week ago
For Khadi village industries to grow, a separate sector must first be created by separating micro enterprises from MSMEs. This demand was already raised by industry and the general public during the Union Budget 2025 consultation events last year. Village industries can be started even with very small investments. Even though rural industries are listed as micro enterprises, rural industries will grow only if policies are formulated to classify them as formal micro enterprises and informal micro enterprises. How can an enterprise with a factory structure that employs workers and an enterprise operated by family members at home be considered the same? It would be best to create a separate ministry for Micro Enterprises to give special attention to the growth of rural industries. If that is not possible, KVIC should create a separate policy for informal Micro Enterprises, from registration to implementation.
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Hajari dan
Hajari dan 5 months 1 week ago
The amendment to the Khadi and Village Industries Commission Act, 1956, is a crucial step toward empowering rural India and strengthening self-reliance. According to official data, the Khadi and Village Industries (KVI) sector has shown an average annual growth rate of around 14.8% over the past decade (source: PIB, Govt. of India). More than 50 lakh people are directly employed through Khadi and village industries (source: IJSI Journal, 2023). The amendment should focus not only on expanding numbers but also on enhancing quality, technology, and global outreach, especially empowering women, tribal, and rural entrepreneurs. Strengthening this sector ensures that “Swadeshi” becomes an economic force, not just an emotion.
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VEERABHADRAREDDYD
VEERABHADRAREDDYD 5 months 1 week ago
The Khadi and Village Industries Commission (KVIC) Act, 1956, as it's a piece of legislation continually evolving to meet modern economic and technological needs. The Act has been amended over time to expand the scope and strengthen the KVIC's role. A significant amendment was made in 2006, and there are currently proposed comprehensive amendments being considered to further modernize the sector. 1. Major Amendment (The Khadi and Village Industries Commission Amendment Act, 2006) The 2006 amendment was a substantial effort to revitalize the sector, focusing on institutional restructuring and financial provisions. Key changes included: Changes to Definitions: The definition of 'Village Industry' was modified, especially regarding the fixed capital investment per artisan limit, which was raised to broaden the scope of industries covered by the KVIC.
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Komal
Komal 5 months 1 week ago
The government is proposing amendments to the KVIC Act, 1956, to modernize Khadi and village industries by focusing on diversification, technological adoption (including clean energy like solar), and formalization. Key changes include aligning the definition of "village industry" with the MSME Act's micro-enterprise criteria, updating the list of eligible industries, and facilitating Udyam Registration and NIC code alignment for village industries. The amendments also aim for institutional strengthening to improve inclusivity and support for rural entrepreneurs. Key areas of proposed amendments: Diversification and new technology: Allow for the adoption of emerging fabrics and the use of clean energy sources like solar power in Khadi production. Formalization of village industries: Update the definition of "village industry" to match the investment and turnover thresholds for micro-enterprises under the MSME Act. Expand the "Schedule of Village Industries" to include
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Rakesh gupta
Rakesh gupta 5 months 1 week ago
भारतीय संस्कृति और व्यवस्था को सोने की चिड़िया कहा गया है Indian country was a Golden Bird एक सुनहरा पक्षी (चिड़िया) क्यों और कहां से ये शब्द लिए गए हैं इसका जवाब है answer is Hanuman ji, हनुमान जी हनुमान जी को ही सोने की चिड़िया कह कर सम्बोधित किया गया है स्वस्थ सोने सा शरीर जो एक पक्षी की भांति उड़ कर लंका पहुंच गया और मक्खी बनकर सब कुछ पता भी लगा लिया answer is- Hanuman ji , is the real hero of Indian philosophy indicate as "golden Bird of india"
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AbhinavSingh
AbhinavSingh 5 months 1 week ago
- *Amendment Act of 2006*: This amendment introduced changes to sections 4, 5, 10, 12, 13, 15, 19A, 25, and 26 of the principal Act, aiming to improve the functioning of the Khadi and Village Industries Commission. The amendment Act was enacted on March 22, 2006. - *Amendment Act of 1987*: This amendment made significant changes to the Act, including omitting section 3, which dealt with the power to add to the schedule, and modifying sections 2, 4, and 18. These changes took effect on July 24, 1987. - *Proposed Amendments*: The Ministry of Micro, Small & Medium Enterprises is currently working on amendments to the KVIC Act, 1956, focusing on three key pillars: - *Diversification and Adoption of New Technology*: Strengthening and modernizing the khadi and village industries sector. - *Formalization of Village Industries*: Promoting formalization and inclusivity in village industries. - *Inclusivity and Institutional Strengthening*: Enhancing institutional strength and promo
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Akshay Jain
Akshay Jain 5 months 1 week ago
I have a suggestion that kindly merge State Co-Operative Banks,District Central Co - Operative Banks,Scheduled Urban Co-Operative Banks & Non-Scheduled Urban Co-Operative Banks. From this we do not have a small Banks & have a Nationalised & strong Banks & Banking System. This can give the Boost to the Indian Economy.
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Rajarshi Roop Sahani
Rajarshi Roop Sahani 5 months 1 week ago
“The Khadi and Village Industries Commission Act, 1956 stands as a visionary step towards self-reliance — a bridge between India’s rural craftsmanship and national development. It not only preserves traditional skills but also empowers villages to become the backbone of sustainable progress.”
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