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Amendments in the Khadi and Village Industries Commission Act, 1956

Amendments in the Khadi and Village Industries Commission Act, 1956
Start Date :
Oct 22, 2025
Last Date :
Nov 22, 2025
17:45 PM IST (GMT +5.30 Hrs)

To institutionalize the development of the Khadi and Village Industries sector, the Government of India first constituted the All India Khadi and Village Industries Board in 1953. ...

To institutionalize the development of the Khadi and Village Industries sector, the Government of India first constituted the All India Khadi and Village Industries Board in 1953. This was followed by the enactment of the Khadi and Village Industries Commission Act, 1956 (No. 61 of 1956), which inter alia provides for the establishment of the Khadi and Village Industries Commission (KVIC) as a statutory body.

KVIC is entrusted with the responsibility to plan, promote, facilitate, organize, and assist in the establishment and development of Khadi and Village Industries in rural areas, in coordination with other agencies engaged in rural development.

In view of evolving market dynamics, technological advancements, and the need to further strengthen support systems, certain provisions of the KVIC Act, last amended in 2006, require updating. A comprehensive amendment is proposed to align the legislative framework with current sectoral needs and to enhance KVIC’s role as a facilitator of growth, innovation, and sustainable village industries.

To strengthen and modernize the Khadi and Village Industries sector, the Ministry of Micro, Small & Medium Enterprises (MSME) in collaboration with MyGov invites citizens to share their views on the proposed Amendments to the Khadi and Village Industries Commission Act, 1956.

The Ministry of MSME is in the process of amending the KVIC Act, 1956. In this regard, this Ministry is being consulted by various central Ministries/Department. The amendments proposed in the KVIC Act, 1956, are based on the following three key pillars:
(a) Diversification and adoption of New Technology
(b) Formalization of Village Industries
(c) Inclusivity and Institutional Strengthening

(a) Diversification and Adoption of New Technology
(i) Make provision for the adoption of any emerging form of fabric in the KVI Sector.
(ii) Adoption of clean energy, like Solar energy, in Khadi production while retaining the sector's authenticity.

(b) Formalization of Village Industries
(i) Align the "Village Industry" definition with the micro-enterprise classification under the MSME Act, based on investment and turnover thresholds.
(ii) Update the Schedule of Village Industries to allow inclusion of emerging activities aligned with market trends, rural entrepreneurship, and technology-led enterprises.
(iii) To make provisions to facilitate Udyam Registration for village industries and align the Village Industries with the National Industrial Classification Code (NIC Code).

(c) Inclusivity and Institutional Strengthening
(i) To include representation of women, weaker sections (SC/ST/OBC) and contemporary expertise in the Commission’s composition
(ii) To open up the Khadi Sector for new entities.
(iii) To include the rule making power in the functions of the Commission.

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Showing 79 Submission(s)
BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

How to improve the MSME sector?
1. Encourage domestic manufacturing of key inputs under the Atma Nirbhar Bharat initiative.
2. Strengthen warehousing & logistics parks for better inventory management.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

What role does technology play in development?
Technology is crucial for development by improving productivity, creating new jobs and economic opportunities, and enhancing quality of life through better healthcare, education and connectivity. It drives economic growth by increasing efficiency, enabling global markets and promoting innovation, while also supporting sustainable practices in sectors like agriculture.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

What is the Khadi and Village Industries Commission concerned with the development of technology related to?
It undertakes activities like skill improvement; transfer of technology; research & development; marketing etc. and helps in generating employment/self-employment opportunities in rural areas.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

The main objectives of the Industrial Policy of 1956 were to accelerate economic growth and industrialization, develop heavy and machine-making industries, expand the public sector, reduce income and wealth disparities, and correct regional imbalances in development. The policy aimed to build a socialist pattern of society by establishing a dominant public sector and promoting balanced, self-sufficient industrial growth.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

What has the government of India done to promote Khadi?
The Khadi Mark was launched by President of India in September 2013 subsequent to notification of the Khadi Certification Regulations 2013. The Khadi Mark not only guarantees the genuineness of Khadi products but also promotes Khadi as a brand that connotes social, cultural and environmental values.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

What are the benefits of technology?
The benefits of technology include improved communication and collaboration, increased efficiency and productivity, better access to information and education and advancements in healthcare and safety. Technology simplifies daily tasks, connects people globally, and can lead to economic growth through innovation and new opportunities. It also drives new solutions for existing problems from creating more sustainable energy to developing medical treatments.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

What are the objectives of Khadi and village industries?
The main objective of KVIB is to give priority for Khadi and Village Industries in rural areas and to develop, provide assistance, generate employment opportunities in rural areas and improve the economic status of the rural artisans.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

What is the importance of Khadi in modern India?
The idea was revolutionary as Indians could regain control over their economic future. Wearing Khadi became an act of defiance and a way of rejecting foreign goods. It was also a way of promoting self-sufficiency to empower the Indians and restore their dignity.

BrahmDevYadav
BrahmDevYadav 2 days 14 hours ago

What is the role of central and state government in promoting entrepreneurship in India?
Role played-by-central-state-government-to-promote-entrepreneurship. The Central and State Governments play an important role in promoting entrepreneurship in India. They establish banks, financial institutions, and implement various policies and schemes focused on supporting small and medium enterprises.

BrahmDevYadav
BrahmDevYadav 2 days 15 hours ago

What was the main objective of the Companies Act 1956?
The objective of the Companies Act, 1956 is to warrant corporate organizations in legal terms. The Act specified the duties of the secretaries and directors of a firm. At present this dictum is controlled by the Indian Government through its multiple wings.