India, June 30 -- The Government of India has issued a release:
The Government has approved a proposal to amend the Khadi and Village Industries Commission (KVIC) Act , 1956 , aimed at modernizing the legal framework governing the Khadi and Village Industries (KVI) sector. The proposed amendments aim to align the Act with contemporary economic and rural development priorities, strengthen institutional governance, promote inclusivity, formalize rural enterprises, and enhance the competitiveness of village industries in domestic and global markets.
The proposed amendments aim to bring the KVIC Act in line with the current policy framework and support the Government's vision of inclusive and sustainable rural economic development.
One of the key changes proposed is to align the definition of "rural area" with the provisions of the Vikassheel Bharat-Employment and Livelihood Mission (Gramin): VB-G Ramji Act, 2025, thereby broadening the scope of convergence with national rural development programmes and ensuring greater inclusiveness.
The proposal also increases the fixed capital investment limit per artisan or worker, in line with the investment limits applicable to micro enterprises under the Micro , Small and Medium Enterprises Development Act (MSMED) . This revision reflects the current scale and investment requirements of village industries and will provide eligible enterprises access to benefits available to the MSME sector.
Recognizing the need to improve the competitiveness of the Khadi and Village Industries sector, the amendments place greater emphasis on branding, exports, innovation, standardization, digitization, and protection of Geographical Indications (GIs). These measures are expected to strengthen the market presence of Khadi and Village Industries in India and internationally.
The proposal also outlines institutional reforms to ensure greater inclusiveness in the Commission's operations. This will include increased representation of women, Scheduled Castes, Scheduled Tribes, the Central Government, and the Mahatma Gandhi Institute for Rural Industrialization (MGIRI). Additionally, a supporting provision empowers the Central Government to notify new village industries, ensuring that the sector remains abreast of emerging economic opportunities and technological advancements.
The Ministry of Micro, Small and Medium Enterprises will implement the amended provisions through the regional offices of the Khadi and Village Industries Commission, State Khadi and Village Industries Boards (KVIBs), Khadi Institutions, Village Industries Institutions and the existing network of entrepreneurs. After the amendment Act comes into force, the Ministry will notify the amended provisions and undertake nationwide dissemination and awareness programmes, including workshops, seminars and public relations campaigns, to facilitate effective implementation at the grassroots level.
The proposed amendments are expected to significantly strengthen the Khadi and Village Industries ecosystem by improving access to finance, technology, and markets, promoting innovation and value addition, encouraging rural entrepreneurship, and creating sustainable employment opportunities. These reforms are also expected to contribute to inclusive rural economic development by enhancing the productivity and competitiveness of village enterprises in the manufacturing, services, and trading sectors.
The communication and awareness activities related to the implementation of the amendments will be carried out within the approved budgetary allocation of the Ministry of Micro, Small and Medium Enterprises, thereby not entailing any additional financial burden.
The amended provisions, once implemented, will benefit the entire Khadi and Village Industries sector in all States and Union Territories through the existing institutional framework of the Ministry of Micro, Small and Medium Enterprises, State Governments and implementing agencies.
This proposal does not involve the launch of any new scheme. Rather, it aims to strengthen and modernize the statutory framework of the Khadi and Village Industries Commission Act, 1956, which forms the basis of various programs and initiatives of the Ministry of Micro, Small and Medium Enterprises.
Disclaimer: The original story of this translated version is available on Press Information Bureau.
Disclaimer: Curated by HT Syndication.
