Khadi Gramodyog Vikas Yojana

Scheme Introduction: A Brief Overview

Khadi and village industries have long provided employment opportunities to artisans, traditional workers and rural families across India. To strengthen these industries, improve artisans' earnings and make traditional products more competitive in the market, the Government of India introduced the Khadi Gramodyog Vikas Yojana (KGVY) in November 2019. It is a Central Sector Scheme that brings together support for the Khadi sector and village industries under one umbrella. Eligible beneficiaries can receive assistance such as a workshed grant of up to ₹1.20 lakh for an individual artisan, concessional working-capital credit at an effective interest rate of 4% for eligible Khadi institutions, and training with machinery or toolkits for rural artisans and unemployed youth.

The scheme is implemented by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. KVIC works with State and Union Territory Khadi and Village Industries Boards (KVIBs), Khadi institutions and banks to deliver the scheme's support. KGVY has two main components: Khadi Vikas Yojana (KVY) and Gramodyog Vikas Yojana (GVY), along with Khadi Grant support for KVIC's establishment expenses. You can find scheme guidelines, notices and other official information on the KVIC official website.

Under the Khadi Vikas Yojana (KVY), eligible Khadi artisans can receive financial incentives, workshed assistance and access to bank loans at 4% annual interest for eligible institutions. From 1 April 2025, spinning wages increased to ₹15 per hank and weaving wages increased by 20%.

Under the Gramodyog Vikas Yojana (GVY), eligible rural artisans and unemployed youth aged 18–55 can receive skill training and toolkits for activities such as pottery, beekeeping, sewing, agarbatti-making, leatherwork, plumbing and electrical services. Priority may be given to SC/ST applicants, women and BPL households, subject to the applicable rules.

To apply, contact your nearest KVIC State or Divisional Office and check whether applications are open. Khadi artisans seeking incentives or workshed assistance should contact their associated Khadi institution or KVIB. Application dates, documents and any beneficiary contribution depend on the specific programme. No nationwide GVY application window or uniform national document checklist was identified in the information reviewed.

For assistance, use the official KVIC website and its contact page to find the relevant office. You may also contact the Directorate of Khadi at 022-26714325 or the Directorate of Marketing at 022-26716680, as listed in the scheme research brief. Please verify the current contact details with KVIC before visiting or submitting documents.

The Prime Minister's Employment Generation Programme (PMEGP) may be useful for eligible applicants seeking support to establish a micro-enterprise, while the PM Vishwakarma Yojana offers skill training, toolkit assistance and credit support to eligible artisans working in specified traditional trades.

Key Components of Khadi Gramodyog Vikas Yojana

The Khadi Gramodyog Vikas Yojana (KGVY) brings together support for Khadi production and rural village industries under one Central Sector Scheme. It has three main components: Khadi Vikas Yojana (KVY), Gramodyog Vikas Yojana (GVY) and Khadi Grant. Each component serves a different purpose.

1. Khadi Vikas Yojana (KVY): This component supports the Khadi sector, including cotton, woollen, silk and Polyvastra Khadi. It provides assistance through artisan incentives, concessional credit, workshed construction, infrastructure improvement, sales outlet renovation, quality assurance and marketing support.
2. Gramodyog Vikas Yojana (GVY): This component promotes village industries by supporting rural artisans and eligible unemployed youth through skill training, machinery, toolkits, technological improvement and other support services. Its six industry areas include agro-based and food processing, mineral-based industries, wellness and cosmetics, handmade paper and leather, rural engineering and new technology, and service industries.
3. Khadi Grant: This component covers the establishment expenses of KVIC officers and staff members, helping the Commission carry out its responsibilities under the scheme.

These components aim to improve artisan livelihoods, strengthen rural industries, increase production and sales, and help traditional products compete in the market. The applicable benefits depend on the component and its guidelines.

Scheme Benefits

The Khadi Gramodyog Vikas Yojana (KGVY) supports Khadi artisans, rural workers and eligible institutions through financial assistance, better working facilities, skill training and tools. The main benefits of the scheme include:

• Eligible individual Khadi artisans can receive up to ₹1.20 lakh for constructing a workshed, subject to the scheme conditions and prescribed cost limit.
• Eligible groups of 5 to 15 artisans can receive up to ₹80,000 per artisan for a group workshed, subject to the applicable conditions.
• Eligible Khadi institutions can obtain working-capital loans at an effective interest rate of 4% per year under the ISEC scheme.
• Khadi artisans can receive financial incentives through the Market Development Assistance (MDA/MMDA) system. The artisan share is generally 35% for cotton, wool and Polyvastra Khadi and 30% for silk Khadi.
• From 1 April 2025, the spinning wage increased to ₹15 per hank, and weaving wages increased by 20% under the announced wage revision.
• Eligible rural artisans and unemployed youth can receive skill training and machinery or toolkits for activities such as pottery, beekeeping, sewing, agarbatti-making, leatherwork, plumbing and electrical services.
• Under the Honey Mission, eligible beneficiaries can receive beekeeping training and support such as bee boxes and related equipment.
• Under Kumhar Sashaktikaran, eligible potters can receive electric potter wheels and training to improve productivity.
• Eligible weak Khadi institutions can receive strengthening assistance of up to ₹15 lakh under the applicable component.
• Eligible Khadi sales outlets can receive renovation assistance of up to ₹25 lakh, subject to the applicable category and funding conditions.
• The scheme supports product quality, Khadi Mark certification, exhibitions, marketing and other activities that can help Khadi and village-industry products reach more customers.
• It also promotes better livelihood opportunities for rural communities and links eligible artisans with social security schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).

Eligibility Requirements

The Khadi Gramodyog Vikas Yojana (KGVY) supports different groups of people and institutions through its Khadi Vikas Yojana (KVY) and Gramodyog Vikas Yojana (GVY) components. The eligibility requirements depend on the type of assistance you want to receive.

• Applicants seeking GVY training and toolkits should generally be between 18 and 55 years of age.
• Rural unemployed youth and traditional artisans involved in, or interested in starting, eligible village-industry activities may apply when applications are invited.
• Applicants must meet the requirements of the particular training programme and selection process.
• Preference may be given to eligible applicants belonging to SC/ST communities, women, below-poverty-line (BPL) households and other priority groups specified in the relevant guidelines.
• Khadi artisans seeking assistance under KVY should generally be associated with an eligible Khadi institution or Khadi and Village Industries Board (KVIB).
• Khadi institutions seeking benefits must meet the applicable registration, certification and approval requirements of KVIC or the relevant KVIB.
• For workshed assistance, an artisan generally needs to have worked for at least 100 days in a year and meet the prescribed land ownership or allotment conditions.
• Applicants who have already received similar assistance may not qualify for certain benefits, particularly workshed support. The applicable scheme guidelines should be checked before applying.
• Applicants should keep their identity proof and other documents required by the relevant KVIC State or Divisional Office ready. Additional documents may be required depending on the benefit and applicant category.

Eligibility conditions and selection procedures can vary by component and training programme. Contact your nearest official KVIC office and check the latest notification before applying.

Required Documents

If you want to apply for assistance under the Khadi Gramodyog Vikas Yojana (KGVY), you may need to submit documents to verify your identity, age, address and eligibility. The required documents depend on whether you are applying for GVY training and toolkits or assistance under the Khadi Vikas Yojana (KVY).

• Application form prescribed by the concerned KVIC State or Divisional Office.
• Aadhaar card or another accepted identity document, as required.
• Proof of address.
• Proof of age.
• Two recent passport-size photographs, if required by the application form.
• Details of your educational qualifications and work experience, where applicable.
• Caste certificate, if you are applying under an eligible reserved or priority category and the notification requires it.
• BPL certificate or other accepted proof, if you are claiming a benefit or preference based on BPL status.
• Bank or post office account details linked with Aadhaar, where required for direct benefit transfer (DBT).
• Land ownership, allotment or other accepted land documents if you are applying for workshed assistance.
• Registration, Khadi Certificate, Khadi Mark Certificate and other relevant approval documents for institutions applying for eligible scheme benefits.

This is a general list, not a mandatory document checklist for every KGVY benefit. The concerned authority has not yet released a uniform national document checklist for all GVY applications. Before applying, contact your nearest KVIC office and check the latest notification for the exact documents required.

Types of Training and Toolkits Available Under GVY

Under Gramodyog Vikas Yojana (GVY), eligible rural artisans and unemployed youth can receive practical training and, depending on the programme, machinery or toolkits to help them improve their skills and pursue income-generating work. The available options depend on the training programme and the notices issued by KVIC.

• Beekeeping: Training and support such as bee boxes and related equipment under the Honey Mission.
• Pottery: Training and electric potter wheels under the Kumhar Sashaktikaran programme.
• Agarbatti-making: Training and machinery for eligible agarbatti-making activities.
• Sewing: Training and sewing machines for eligible sewing-related work.
• Leatherwork and footwear: Training and tools for leather repair and related activities.
• Waste-wood craft and carpentry: Training and equipment for making useful products from wood and waste wood.
• Agro-based and food processing: Skill development and support for eligible rural food-processing activities.
• Fibre extraction and handmade products: Training and equipment for eligible fibre-based and handmade-product activities.
• Electrician and plumbing services: Practical training and toolkits for eligible repair and maintenance work.
• Other rural services: Training may also be available in areas such as air-conditioner repair, mobile repair and sewing machine operation, depending on the programme offered.

Training duration and toolkit specifications differ by activity. For example, a KVIC State Office notice published in August 2024 listed programmes ranging from 10 to 20 days, with different machinery values. The notice also specified beneficiary contributions for that particular programme, so those contribution rates should not be assumed to apply nationwide.

To find out which courses are currently accepting applications, check the GVY Training page and contact the relevant KVIC State or Divisional Office. Training availability, selection rules, documents and any beneficiary contribution must be confirmed from the latest notice.

Steps to Apply

The application process for the Khadi Gramodyog Vikas Yojana (KGVY) depends on the type of assistance you need. Khadi artisans usually apply through their associated Khadi institution or Khadi and Village Industries Board (KVIB), while people interested in training and toolkits under Gramodyog Vikas Yojana (GVY) should follow the application notice issued by their local KVIC office.

• First, identify the benefit you need. If you are a Khadi artisan seeking workshed assistance or an artisan incentive, contact the Khadi institution you work with. If you want training or a toolkit for a village-industry activity, check for GVY application notices from your nearest KVIC State or Divisional Office.
• Open the official KVIC website and look for the latest scheme announcements and relevant information. You can also check the GVY Training page for training-related information. Availability of applications may vary by state and programme.
• If applications are open, obtain the prescribed form and read the notice carefully. Follow the stated instructions for filling in your personal details, selecting the training or activity, attaching photographs and submitting supporting documents.
• Submit the completed application to the KVIC State or Divisional Office mentioned in the notice, before the closing date. Use the submission method specified by that office, as a single nationwide online application process for individual GVY beneficiaries has not been identified.
• Wait for the concerned office to review your application and complete the selection process. If selected for GVY, you may be asked to attend the prescribed training, which commonly lasts around 10 to 20 days, depending on the programme.
• After successfully completing the required process, eligible beneficiaries may receive a training certificate and the approved machinery or toolkit. Any beneficiary contribution or maintenance undertaking will depend on the specific programme and its notification.
• If you are applying for workshed assistance or another KVY benefit, ask your associated Khadi institution or KVIB about the application process, required documents and approval stages. These benefits are generally processed through the relevant institution rather than through a direct individual online application.

Relevant Links

• Ministry of Micro, Small and Medium Enterprises (MSME)
• Khadi and Village Industries Commission (KVIC) Official Website
• Gramodyog Vikas Yojana (GVY) Training Page
• Khadi Vikas Yojana (KVY) Revised Guidelines
• KVIC Vacancies and Notices

Contact Information

For queries related to the Khadi Gramodyog Vikas Yojana (KGVY), applicants can contact the Khadi and Village Industries Commission (KVIC), which works under the Ministry of Micro, Small and Medium Enterprises, Government of India.

Khadi and Village Industries Commission (KVIC)

• Telephone: (STD Code 022) 69168912 / 69168913 / 69168914
• Address: "Gramodaya", 3, Irla Road, Vile Parle (West), Mumbai, PIN – 400056, Maharashtra, India.