Khadi and Village Industries Sector Achieves Record Growth, Sales Cross Rs 1.87 Lakh Crore in FY 2025-26

According to KVIC data, sales of Khadi and Village Industries products surged to Rs 1,87,105 crore during FY 2025-26, marking the highest-ever sales figure recorded in the sector’s history.

India's Khadi and Village Industries sector has achieved a historic milestone in the financial year 2025-26, with total sales crossing an unprecedented Rs 1.87 lakh crore mark. The remarkable achievement reflects the growing strength of rural entrepreneurship, self-reliance, and indigenous manufacturing under the leadership of Prime Minister Narendra Modi and the government's flagship initiatives such as "Aatmanirbhar Bharat," "Vocal for Local," and "Local to Global."

The Khadi and Village Industries Commission (KVIC) released provisional data for FY 2025-26 at Gandhi Darshan, Rajghat, New Delhi, highlighting record-breaking performance in production, sales, employment generation, and women empowerment across the rural economy.

Historic Sales Reach New High

According to KVIC data, sales of Khadi and Village Industries products surged to Rs 1,87,105 crore during FY 2025-26, marking the highest-ever sales figure recorded in the sector's history. In comparison, sales stood at Rs 31,154 crore in 2013-14, reflecting a massive growth of approximately 501 percent over the last 12 years.

The production value of Khadi and Village Industries products also witnessed extraordinary expansion. Production increased from Rs 26,109 crore in 2013-14 to Rs 1,25,296 crore in FY 2025-26, registering a growth of nearly 380 percent.

KVIC Chairman Shri Manoj Kumar described the achievement as a major contribution toward the vision of "Viksit Bharat@2047" and emphasized that the sector's growth demonstrates the rising strength of India's rural economy and local manufacturing ecosystem.

Khadi Becomes Symbol of New India

Once regarded primarily as a traditional hand-spun fabric associated with India's freedom movement, Khadi has transformed into a symbol of modern self-reliance, sustainability, and indigenous pride. Government campaigns promoting local products and rural industries have significantly increased the acceptance of Khadi products both domestically and internationally.

The Prime Minister's repeated promotion of Khadi through public outreach, campaigns, and national initiatives has helped strengthen consumer awareness and market demand. Officials believe Khadi has evolved from a heritage product into a lifestyle and economic movement supporting millions of rural artisans and micro-entrepreneurs.

Massive Growth in Khadi Textile Sector

The Khadi textile sector alone witnessed substantial growth over the past decade. Production increased from Rs 811 crore in 2013-14 to Rs 3,974 crore in FY 2025-26, marking a rise of nearly 390 percent. Meanwhile, sales increased from Rs 1,081 crore to Rs 7,869 crore, reflecting an impressive growth of approximately 628 percent.

Industry experts attribute this growth to improved branding, modernization, digital marketing, government procurement support, and increasing consumer preference for eco-friendly and handmade products.

Village Industries Sector Expands Rapidly

The village industries segment also recorded strong growth during the same period. Production in the village industries sector rose from Rs 25,298 crore in 2013-14 to Rs 1,21,322 crore in FY 2025-26, while sales increased from Rs 30,073 crore to Rs 1,79,236 crore.

The sector includes activities such as:

• Honey production

• Pottery

• Agarbatti manufacturing

• Leather and footwear production

• Food processing

• Handicrafts and woodcrafts

• Rural engineering services

• Traditional industries and micro-enterprises

Officials stated that initiatives like "Ghar-Ghar Swadeshi" and increasing awareness about locally manufactured products have significantly boosted demand for village industry products across India.

Employment Generation Crosses 2 Crore

One of the most important achievements highlighted in the report is the sector's contribution to employment generation.

Employment linked to Khadi and Village Industries activities increased from 1.30 crore in 2013-14 to 2.04 crore in FY 2025-26, reflecting a growth of 56 percent.

The village industries sector alone supported employment for nearly 1.99 crore people during the current financial year. The growth underscores the sector's critical role in generating livelihoods in rural and semi-urban areas, especially among economically weaker communities.

PMEGP Strengthening Rural Entrepreneurship

The Prime Minister's Employment Generation Programme (PMEGP) continued to play a major role in promoting self-employment and entrepreneurship.

During FY 2025-26:

• 66,494 new units were established

• Margin money subsidy worth Rs 2,457 crore was disbursed

• Loans amounting to Rs 7,375 crore were facilitated

• Employment opportunities were created for over 7.31 lakh people

Since the launch of PMEGP, more than 10.84 lakh units have been established across the country, generating employment for nearly 97.95 lakh people.

The scheme has become one of India's largest rural self-employment initiatives, supporting micro-enterprises in manufacturing, services, and traditional industries.

Toolkits and Machinery Boost Rural Livelihoods

Under the Gramodyog Vikas Yojana, KVIC has distributed over 3.23 lakh machines, toolkits, and equipment to rural artisans and entrepreneurs.

These include:

• Electric pottery wheels

• Bee boxes and bee colonies

• Agarbatti manufacturing machines

• Footwear manufacturing toolkits

• Mobile and AC repair toolkits

• Tailoring equipment

• Wooden toy-making machines

• Food processing machines

The initiative aims to modernize traditional rural occupations while improving productivity, income generation, and employment sustainability.

Women Emerging as Major Contributors

The report also highlights significant progress in women empowerment through KVIC initiatives.

Out of 79,682 trainees trained during FY 2025-26 under various KVIC training programs, 47,382 were women, accounting for nearly 59 percent of total trainees.

Under PMEGP:

• 28,180 women entrepreneurs established business units

• Employment opportunities were created for more than 3.09 lakh women

Officials noted that women constitute over 80 percent of the nearly five lakh artisans working in the Khadi sector, making it one of India's strongest examples of women-led rural economic empowerment.

Artisan Wages Rise Sharply

The remuneration paid to Khadi artisans has also improved significantly. Payments increased from Rs 4 per hank in 2013-14 to Rs 15 per hank currently, marking an increase of approximately 275 percent.

The increase has helped improve rural incomes and living standards for artisans engaged in traditional spinning and weaving activities.

Rising Demand for Khadi and National Flags

The report further noted growth in government procurement and public engagement with Khadi products.

Government procurement of Khadi and Village Industries products increased to Rs 92.08 crore, while exhibition and marketing sales reached Rs 30.83 crore during FY 2025-26.

Sales of National Flags also rose sharply from Rs 0.87 crore in 2013-14 to Rs 2.35 crore in FY 2025-26, driven largely by nationwide campaigns such as "Har Ghar Tiranga."

Rural Economy Gets New Momentum

The continued expansion of the Khadi and Village Industries sector demonstrates how traditional industries, when supported through policy reforms, technology integration, financial assistance, and market expansion, can become powerful engines of economic growth.

Experts believe the sector's strong performance will continue contributing to:

• Rural industrialization

• Employment generation

• Women empowerment

• Sustainable manufacturing

• Indigenous production

• Inclusive economic development

As India moves toward its "Viksit Bharat 2047" vision, the Khadi and Village Industries ecosystem is increasingly emerging as a key pillar of rural transformation and self-reliant economic growth.