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Union Budget allocates more funds to promote Khadi

Published
today Jul 8, 2019
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The Union Budget, tabled in parliament on Friday, has allocated Rs 1,252.65 crore ($188.3 million) towards the development of Khadi and village industries. The total is a three percent increase compared to the year before.

The Narendra Modi government will continue to invest in Khadi and other village industries - KVIC


The re-elected Narendra Modi government aims to continue to support the production of Khadi as part of its Make in India campaign. As part of this, the government has allocated three percent more funds to the sector in its budget for 2019/2020, the Economic Times reported. 

Although the amount allocated is only a small increase from last year’s budget, the allocation of the funds within the industry has shifted to have a larger focus on job creation. The Khadi Vikas Yojana has been allocated Rs 396.46 crore compared to no funding last year. The KVY comprises a number of schemes including the MPDA, ISEC, Workshed, Strengthening Weak Infra, Aam Aadmi Bima Yojana, Khadi Grant, and Khadi & Village Industries Science & Technology schemes. 

Some of the money will go towards the Rozgar Yukta Gaon scheme which will be rolled out in 50 villages and introduce 10,000 charkhas, 2000 looms, and 100 warping units to Khadi craftspeople in order to increase their employment opportunities. The scheme was first announced in February.

The Gramodyog Vikas Yojana scheme has been allocated Rs 102.92 crore in the budget. This will go towards promoting village industries by creating facilities, providing training, and promoting artisans’ work. Village industries include the production of leather goods, accessories, wellness and cosmetics products, and homeware products among others. 

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