Khadi gets increased allocation in 2019-20 budget to aid its positioning in global markets

by Apparel Resources News-Desk

08-July-2019  |  2 mins read

Khadi receives increased budget allocation
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The fiscal year (FY) 2019-20 budget has seen a 3 per cent increase in allocation towards Khadi in line with the Government’s vision to promote Khadi as a global fabric.

The budget saw a total allocation of Rs. 1,252.65 crore towards development of Khadi, Village and Coir Industries in lieu of new additions to aid in better development of the industry.

Khadi Vikas Yojana (KVY) has received the bulk of the grant amounting to Rs. 396.46 crore as against a nil component last year. KVY comprises two new facets – Rozgar Yukt Gaon and Design House.

The above-mentioned new schemes are an addition to the existing schemes like Market Promotion Development Programme, Interest Subsidy Eligibility Certificate and Khadi Reforms Development Programme.

The Rozgar Yukt Gaon aims at introducing an ‘Enterprise-led business model’ instead of ‘Subsidy-led model’. It will be initiated in 50 villages by handing over 10,000 charkhas, 2,000 looms and 100 warping units to artisans thereby developing opportunities of direct employment.

The Gramodyog Vikas Yojana (GVY) has been allocated Rs. 102.92 crore this year which focuses on promotion and development of the village industries through common facilities, technological modernisation and providing all round training to other support and services.

The Government has carefully planned the budget as a part of its plan to promote Khadi as a global fabric and achieving sales of 5,000 crore this year as told by V.K. Saxena, Chairman, Khadi & Village Industries Commission (KVIC). He also reiterated that through promotion of the village industry products such as detergents, soaps, honey and oil, a huge employment potential will be created across different parts of the country.

The Modi Government, last year, had planned special events in India and abroad to mark the 150th birth anniversary year of Mahatma Gandhi including positioning Khadi abroad as an ‘idea’ and practical ‘health solution’, instead of limiting it to only a ‘garment’.

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