Khadi’s Rural Enterprise Growth Gains Momentum With Rs 1.87 Lakh Cr Sales

Khadi, once seen largely as a traditional hand-spun fabric associated with India’s freedom movement, has emerged as a major modern industry with strong commercial, employment, and entrepreneurial outcomes, according to the latest provisional data released by the Khadi and Village Industries Commission (KVIC) for FY 2025–26.

The sector has recorded a historic milestone, with Khadi and Village Industry products crossing Rs 1.87 lakh crore in sales , reflecting a nearly six-fold increase compared to 2013–14. Production has also expanded sharply to over Rs 1.25 lakh crore , while the ecosystem now supports employment for about 2.04 crore people , highlighting its large-scale rural impact.

This transformation has been driven by a shift in positioning from Khadi as a symbolic textile to a market-driven rural enterprise ecosystem . Initiatives such as ‘Vocal for Local’ , ‘Aatmanirbhar Bharat’ , and ‘Local to Global’ have helped integrate Khadi into mainstream consumer markets, including organised retail, exhibitions, government procurement, and digital platforms.

A key factor in this evolution has been the expansion of the village industries segment , which has diversified into products such as food processing, handicrafts, bee-keeping, and rural manufacturing. This diversification has helped Khadi move beyond textiles into a broader rural industry framework, making it more resilient and commercially viable.

The sector has also seen a major push in entrepreneurship development through the Prime Minister’s Employment Generation Programme (PMEGP) , which has facilitated the creation of over 10 lakh units since inception , supporting self-employment and small business growth across rural India.

At the grassroots level, artisans have directly benefited from improved wages, with remuneration increasing by around 275% over the past decade , alongside wider access to training and modern tools under schemes like the Gramodyog Vikas Yojana .

Women’s participation has also become a defining feature of Khadi’s modern identity, with a significant share of artisans and trainees being women, reinforcing its role in women-led rural entrepreneurship .

Overall, Khadi’s journey reflects a structural shift from a heritage-based product to a scalable, policy-supported rural industry model that blends tradition with market-oriented growth, positioning it as a notable example of India’s evolving rural economy.