(GIST OF KURUKSHETRA) Khadi Reinvented

(DECEMBER-2025)

Khadi Reinvented

Context:

The Khadi ecosystem of 2025 integrates rural craftsmanship with urban creativity, utilizing digital marketplaces and sustainable consumer behaviour. Artisans have access to national and global markets, while startups focus on innovative designs, natural dyes, and premium branding. The growth of Khadi is attributed to the efforts of the Khadi and Village Industries Commission (KVIC), which supports livelihoods and preserves craft traditions. Initiatives like the Khadi Vikas Yojana 2025 and Gramodyog Vikas Yojana provide vital resources and training, establishing Khadi as a key element of India’s inclusive economic growth.

The Data Story: A Decade of Extraordinary Growth

The Khadi sector has seen remarkable growth in the past decade, with a 447% increase in sales and a 347% rise in production from 2013-14 to 2024-25. The turnover reached Rs. 1.7 lakh crore in FY25, with clothing production growing by 366% and garment sales by 561%.
This growth reflects a rising consumer preference for sustainable, handcrafted products. Additionally, Khadi is a significant rural employer, supporting nearly 1.94 crore jobs in 2025, with over 80% of artisans being women, thus playing a crucial role in women’s empowerment and community resilience.
The Prime Minister’s Employment Generation Programme (PMEGP) has emerged as the backbone of rural enterprise creation. Since its inception, 10.18 lakh new units have been established under PMEGP, generating more than 90 lakh jobs. Subsidies, digital toolkits, improved machinery and simplified processes have made entrepreneurship accessible even to firstgeneration business owners.

Khadi as a Start-Up Opportunity

Khadi is experiencing a significant transformation, with 2025 set to be a pivotal year. A supportive policy environment has made Khadi a prime sector for entrepreneurship in India. Entrepreneurs benefit from various dedicated schemes, such as the Prime Minister’s Employment Generation Programme (PMEGP), which provides crucial financial support for micro-units, and the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), which enhances cluster-based infrastructure and productivity.
The Modified Market Development Assistance (MMDA) scheme enhances the marketing competitiveness of Khadi institutions, artisans, and entrepreneurs. ASPIRE aids innovation and enterprise creation in rural areas through Livelihood Business Incubators.
The Khadi Vikas Yojana modernizes Khadi activities with technology, while the Gramodyog Vikas Yojana strengthens rural industries via training and capacity building. These initiatives foster growth in the Khadi value chain.
Additionally, digital transformation, including e-commerce and blockchain technology, improves market access and transparency for Khadi artisans, enhancing brand trust among consumers.

The Future Khadi - From Heritage Fabric to Global Sustainable Powerhouse

India’s Khadi is at a pivotal moment, evolving from a symbol of independence to a model of ecological responsibility and inclusive entrepreneurship.
Its future relies on three pillars: innovation, including advancements in fibre research and sustainable production; integration, connecting rural artisans with urban buyers; and internationalisation, aligning with global trends towards sustainability and ethical production, appealing to consumers seeking low carbon footprints and cultural authenticity.

Conclusion

The Khadi movement began as a symbol of freedom, self-respect and national pride. Today, it is becoming a symbol of responsible entrepreneurship, creative innovation and global sustainability. The journey of Khadi start-ups reflects the journey of New India, rooted in tradition, powered by innovation and ready for the world.