Khadi and village industries’ growth rate likely to decline in FY23: Govt data

Ease of doing business for MSMEs: Compared to Rs 59,182 crore khadi and village industries’ turnover in FY18, the FY23 turnover is expected to register 122 per cent growth. Moreover, the sector’s production is also expected to grow 14.9 per cent in FY23.

Written by Sandeep Soni

February 21, 2023 18:29 IST

khadi and village industries, kvic, khadi sector, kvic jobs, kvic turnover, kvic employment, village industry products

In terms of jobs, the sector’s employment is expected to grow to 1.75 crore in FY23 from 1.67 crore in FY22.

Ease of doing business for MSMEs: The khadi and village industries are projected to achieve Rs 1.31 lakh crore in turnover in the current financial year, up from Rs 1.15 lakh crore achieved in FY22, the MSME Ministry noted in its FY23 annual report released recently. The FY23 turnover growth is expected to be 13.8 per cent, down from 20.54 per cent in FY22. Village industries are expected to churn out Rs 1.25 lakh crore turnover in FY23 — 95.8 per cent of the projected turnover, growing 14.07 per cent from Rs 1.10 lakh crore in FY22. In comparison, khadi units are likely to report the remaining Rs 5,500 crore share of the total turnover, up 8.87 per cent from Rs 5,051 crore turnover in FY22.

Till December 2022, the Khadi sector’s turnover stood at Rs 3,822 crore while village industries recorded Rs 92,987 crore turnover, the report noted. Compared to Rs 59,182 crore khadi and village industries’ turnover in FY18, the FY23 turnover is expected to register 122 per cent growth. Moreover, the sector’s production is also expected to grow 14.9 per cent in FY23.

Also read: Hilly and border areas are a key focus for KVIC, said its Chairman Manoj Kumar

“Prime Minister’s repeated appeals to achieve self-reliance by promoting Swadeshi and particularly Khadi has done wonders. Today Khadi stands far ahead of all FMCG companies in the country. By employing new scientific methods and diversifying Khadi’s product range, KVIC has succeeded in achieving such massive growth which no other FMCG company can match,” Vinai Kumar Saxena, Former Chairman, KVIC had said last year in a statement.

Comments from KVIC for this story weren’t immediately available.

Khadi and village industries are represented by the Khadi and Village Industries Commission (KVIC) under the aegis of the MSME ministry for providing employment opportunities in rural areas.

Also read: This many KVIC jobs estimated in FY23, down from FY22 level: Govt data

In terms of jobs, the sector’s employment is expected to grow to 1.75 crore in FY23 from 1.67 crore in FY22 with the khadi sector employing 4.98 lakh people and village industries employing 1.70 crore, the report showed.

In order to increase the income of workers associated with khadi, KVIC had earlier this month decided to increase the wages from Rs 7.50 per hank to Rs 10 per hank for income generation, which would increase the monthly income of artisans by around 33 per cent and 10 per cent increase in the wages of weavers. The move will come into effect on April 1, 2023.