(GIST OF KURUKSHETRA) Khadi Strengthen Rural Economy

(DECEMBER-2025)

Khadi Strengthen Rural Economy

Context:

India aims to become a 5 trillion-dollar economy by 2027, reaching 10 trillion by 2033 and achieving developed nation status by 2047. However, development must extend beyond numerical targets to ensure grassroots impact and inclusivity. Indigenous means of production, such as Khadi, are crucial for delivering development to every citizen.

The Meaning of Khadi

To understand why Khadi is considered an instrument of self-reliant development, it is important to revisit its legal and traditional definitions. The Khadi and Village Industries Commission Act, 1956, defines Khadi as “any cloth woven on handlooms in India from cotton, silk, or woollen yarn hand-spun in India or from a mixture of any two or all of such yarns.” This definition echoes Mahatma Gandhi’s own words: “Any cloth woven by hand from yarn spun by hand, regardless of its fineness, is Khadi. It may be cotton, silk, or wool. The main criterion is that it must be hand-spun and handwoven.”

From Freedom Struggle to Modern Growth

Encouraged by Gandhi’s ideals, Khadi became a crucial part of India’s pre-independence economic fabric. Recognising this significance, post-independence governments institutionalised these efforts through the creation of the Khadi and Village Industries Commission (KVIC) to modernise production, provide raw materials, training, credit, and marketing support— particularly to rural artisans who previously struggled to access markets.

Khadi’s Impressive Growth

This effort has yielded significant results. Khadi production has grown from about Rs. 811 crore in 2013-14 to more than Rs. 3,700 crore in 2024-25— an increase of nearly four and a half times. Sales have risen even more sharply— from around Rs. 1,081 crore in 2013-14 to over Rs. 7,000 crore in 2024-25, marking almost six and a half times growth. The Khadi sector presently employs about five lakh artisans, including spinners, weavers, and others involved in garment production, conversion, and marketing. Women constitute approximately 80 per cent of this workforce.

Empowering Artisans

Over the past 11years, several initiatives have been launched to improve production systems and artisan welfare:

The wage rate for spinning one hank has been increased from Rs. 10 to Rs. 12.50, and weaving wages for cotton, wool, and polyvastra have been raised by 7 per cent.
Market development assistance now provides a 35 per cent incentive for cotton, wool, and polyvastra organizations, and 30 per cent for silk Khadi institutions.
Under a special scheme, artisans receive 75 per cent of the cost (or up to Rs. 1.2 lakh) for shaded workplace construction; groups of 5-15 artisans receive up to Rs. 80,000 per artisan under similar terms.

Expanding Markets

In marketing and outreach:

Benchmark design processes have been established with the National Institute of Fashion Technology (NIFT) to develop new fabrics, promote standards, rebrand Khadi, and organize fashion shows and exhibitions nationally and internationally.
E-marketing linkages have been developed through Government e-Marketplace (GeM) and online portals for small and medium enterprises.
Exclusive Khadi Lounges have been set up in major cities to attract discerning designers and consumers.
Central ministries and departments are required to ensure that at least 20 per cent of their annual handloom textile purchases are Khadi-based.
Khadi supplies now cater to institutions like Indian Railways, Defence Services, Health and Family Welfare, and paramilitary forces.

Conclusion:

Khadi’s perception has evolved over time— it now appeals to every generation and social segment, contributing substantially to India’s economic fabric. Appeals from national leaders have further popularised it. Union Home and Cooperation Minister urged citizens to buy at least Rs. 5,000 worth of Khadi each year, emphasising that Khadi strengthens both individuals and the national economy.