The Central Government’s Khadi Gramodyog Vikas Yojana (KGVY) is for artisans, institutions and rural entrepreneurs connected with khadi and village industries. It is run by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MSME) — KVIC is a statutory body created by an Act of Parliament in 1956. The scheme aims to raise the productivity and wages of khadi artisans, improve production infrastructure, modernise sales outlets, and increase sales and exports.
Two main parts of the scheme
The scheme has two main components — the Khadi Vikas Yojana (KVY) and the Gramodyog Vikas Yojana (GVY). The Khadi Vikas Yojana promotes the khadi sector, covering cotton, woollen, silk and Polyvastra khadi. The Gramodyog Vikas Yojana promotes village industries through common facilities, technology upgradation, training and toolkit distribution.
What support Khadi Vikas Yojana gives
The Khadi Vikas Yojana offers several kinds of assistance. Under the Modified Market Development Assistance (MMDA), khadi institutions get a subsidy on prime cost — 35 percent for cotton/muslin, wool and Polyvastra khadi, and 20 percent for silk khadi. Under the Interest Subsidy Eligibility Certificate (ISEC) scheme, a khadi institution pays only 4 percent interest on working capital loans, with the rest covered as subsidy. The Workshed Scheme for Khadi Artisans gives up to ₹1,20,000 or 75 percent of the cost for an individual workshed of 20 square metres. Financial assistance of up to ₹15 lakh is available for strengthening the infrastructure of weak khadi institutions and for marketing infrastructure. Support is also given for modernising sales outlets, quality assurance and exhibitions.
Which industries Gramodyog Vikas Yojana covers
The Gramodyog Vikas Yojana supports six kinds of village industries — agro-based and food processing, mineral-based, wellness and cosmetics, handmade paper leather and plastic, rural engineering and new technology, and service industries. Rural artisans and unemployed youth in these trades get skill training, machinery, toolkits and technological improvement support.
How artisans in Haryana can get this support
This scheme does not pay cash directly to individuals — support reaches artisans through khadi institutions and the State Khadi and Village Industries Boards. An artisan in Haryana should contact the khadi institution in their district or the Haryana Khadi and Village Industries Board to find out which support applies to their work. A separate KVIC scheme, the Prime Minister’s Employment Generation Programme (PMEGP), is for setting up a new micro unit. Never pay any middleman for this assistance.
Frequently Asked Questions
Q1: Who does the Khadi Gramodyog Vikas Yojana help?
A: Khadi artisans, khadi institutions, and rural artisans and youth in village industries — through worksheds, marketing support, cheap credit and training.
Q2: How much subsidy does MMDA give?
A: 35 percent of prime cost for cotton/muslin, wool and Polyvastra khadi, and 20 percent for silk khadi.
Q3: How much support is given for an artisan’s workshed?
A: Up to ₹1,20,000 or 75 percent of the cost for an individual workshed of 20 square metres.
Q4: Can I apply online directly under this scheme?
A: No — support flows through khadi institutions and state khadi boards. Contact the khadi institution in your district or the state board, and check the latest details on the KVIC or Ministry of MSME website.
Useful links
- Ministry of MSME official website: https://msme.gov.in/
- Khadi Gramodyog Vikas Yojana on MyScheme: https://www.myscheme.gov.in/schemes/kvyoj
- Next Action: see all 726 Central Government schemes — /english/kendra-sarkar-ki-yojnayen-2/
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