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Business & Entrepreneurship

Khadi Gramodyog Vikas Yojana: Khadi Vikas Yojana

The scheme aims to increase productivity and wages of Khadi artisans, improve production infrastructure, boost employment and sales, revive traditional rural skills, modernize sales outlets, and promote marketing and exports.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

Assistance provided under different components of Scheme: | Modified Market Development Assistance (MMDA): | - Subsidy @ 35% on Prime Cost for Cotton/Muslin, Wool and Polyvastra and @ 20% on Prime Cost for Silk Khadi | Interest Subsidy Eligibility Certificate Scheme (ISEC): | - Khadi Institution is required to pay only 4% interest rate. The difference between the actual Interest charged by the Bank and 4% is borne by the KVIC as “Interest Subsidy”. | Work-shed Scheme for Khadi Artisans: | - Individual workshed (20 Sq. mtrs): ₹1,20,000/- or 75% of the cost of workshed including toilet (90% for NER), whichever is less. | - Group workshed (10 Sq. mtrs per artisans): ₹80,000 or 75% of the cost of the workshed including toilet (90% for NER), whichever is less. | Strengthening Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure: | - Financial assistance for revival of khadi institution with ceiling limit of ₹15.00 lakh(Capital Expenditure +working fund). | - Financial assistance under Marketing Infrastructure for renovation of departmental sales outlets of KVIC /KVIB and institutional sales with the ceiling limit of ₹25.00 lakh. | Other Components: | - Centre of Excellence for Khadi | - Khadi Quality Assurance | - Marketing(Exhibition) | - Science & Technology (S&T)

Who can apply

The applicant must be a Khadi artisan or Khadi Institution registered with KVIC or KVIB.; The applicant must be between 18 to 55 years of age.; The applicant must have a valid Aadhaar card or government-issued ID.; One person per family is eligible under the scheme.; The applicant should not have availed benefits from any other government scheme for the same purpose.; Preference is given to SC/ST, women, unemployed youth, and BPL category applicants.; The beneficiaries may be identified by KVIC, KVIBs, NGOs, DICs, FPOs, or Khadi Institutions.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is Khadi Vikas Yojana (KGVY)?

Khadi Vikas Yojana is a Government of India scheme implemented by the Khadi and Village Industries Commission (KVIC) to promote Khadi production, improve artisan livelihoods, strengthen Khadi institutions, and expand marketing and exports of Khadi products.

What financial assistance is provided under the scheme?

The scheme provides production subsidy under Modified Market Development Assistance (MMDA), interest subsidy through the Interest Subsidy Eligibility Certificate (ISEC), assistance for worksheds, revival of weak institutions, and support for marketing infrastructure.

What is Modified Market Development Assistance (MMDA)?

MMDA provides subsidy of 35% on the prime cost for Cotton, Muslin, Wool, and Polyvastra Khadi, and 20% for Silk Khadi, helping institutions reduce production costs and increase artisan wages.

What is the ISEC scheme under KGVY?

Under the Interest Subsidy Eligibility Certificate (ISEC) scheme, Khadi institutions pay only 4% interest on bank loans, while the remaining interest is borne by KVIC as a subsidy.

What support is given for worksheds?

The scheme provides financial assistance for individual and group worksheds for Khadi artisans, including toilets, to improve working conditions and productivity, with higher assistance for the North Eastern Region.

Is there support for weak Khadi institutions?

Yes, financial assistance up to ₹15 lakh is provided for the revival of existing weak Khadi institutions, covering capital expenditure and working capital requirements.

Does the scheme support marketing infrastructure?

The scheme supports renovation and modernization of departmental and institutional sales outlets, with financial assistance up to ₹25 lakh, to improve product display and customer outreach.

Are there any additional components under the scheme?

Yes, the scheme includes support for Khadi quality assurance, exhibitions, science and technology initiatives, and the establishment of Centres of Excellence for Khadi.

What is the age limit for applicants?

Applicants must be between 18 and 55 years of age and must possess valid identity proof such as an Aadhaar card or other government-issued ID.

Can more than one person from a family apply?

No, only one person from one family is eligible to receive assistance under Khadi Vikas Yojana.