Khadi Vikas Yojana (KVY)

Why in news?
Around 199 artisans trained under Khadi Vikas Yojana, along with PM Vishwakarma and SRI Fund beneficiaries, recently highlights their role in national and state-level events as of early 2026.

About Khadi Vikas Yojana (KVY)

Khadi Vikas Yojana (KVY) is a flagship scheme under the Ministry of MSME, implemented by the Khadi and Village Industries Commission (KVIC).
Its primary aim is to boost productivity, wages, and livelihood security of khadi artisans while modernizing infrastructure, promoting marketing, and reviving traditional village industries.
It acts as an umbrella scheme combining several sub-programs to strengthen khadi institutions and artisans.

Objectives of Khadi Vikas Yojana

Enhance livelihood security of rural artisans by increasing productivity and wages.
Improve infrastructure for khadi production and modernize weak institutions.
Promote marketing and exports of khadi products.
Revive traditional skills of artisans and expand employment opportunities.
Support village industries to increase the number of rural entrepreneurs.

Key Components

Sub-Scheme	Purpose
Modified Market Development Assistance (MMDA)	Provides financial support to artisans and institutions for production and sales.
Interest Subsidy Eligibility Certificate Scheme	Helps artisans access cheaper credit.
Khadi Artisans Workshed Scheme	Improves working conditions by providing better sheds.
Strengthening Infrastructure of Weak Institutions	Revives struggling khadi institutions with financial and technical aid.
Centre of Excellence for Khadi (CoEK)	Focuses on innovation, design, and quality improvement.
Khadi Quality Assurance	Ensures standardization and certification of khadi products.
Marketing Promotion (Exhibitions)	Expands reach through fairs, exhibitions, and campaigns.
Science & Technology (S&T) Scheme	Introduces modern tools and techniques in khadi production.

Benefits for Artisans

Higher wages through productivity-linked incentives.
Better working environment with upgraded worksheds.
Access to credit at subsidized interest rates.
Skill development and training through CoEK.
Increased market visibility via exhibitions and export promotion.

Challenges & consideration

Dependence on subsidies may reduce long-term sustainability.
Modernization vs. tradition: balancing mechanization with Gandhian ideals of hand-spun khadi.
Market competition from synthetic fabrics and fast fashion.
Awareness gap: many rural artisans are unaware of available schemes.

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