<p>Khadi and Village Industries continue to play an important role in India’s rural economy by generating employment, supporting traditional skills and creating opportunities for small producers. Rooted in local production systems, the sector connects artisans and village entrepreneurs with consumers while contributing to the broader goal of an inclusive and self-reliant economy.</p><p>Khadi differs from other handloom products because it is made from hand-spun and hand-woven yarn. Its decentralised and labour-intensive production model creates work across several skill levels, particularly in rural areas where alternative employment opportunities may be limited. The sector also supports broader development objectives linked to poverty reduction and decent work.</p><p>The Khadi and Village Industries Commission has introduced measures to strengthen artisan livelihoods through skill development, training, improved tools and production infrastructure. Spinning and weaving wages were enhanced from April 2025, while marketing support and capacity-building programmes have been used to improve the economic viability of traditional occupations.</p><p>Khadi is also evolving beyond its historic image into a contemporary fashion and lifestyle category. Product ranges now include designer saris, denim, bridal wear, shirts, trousers and specialised wellness clothing. The Centre of Excellence for Khadi at the National Institute of Fashion Technology in Delhi has developed 2,129 design collections across multiple categories, while the Navyug Khadi and Svadha collections aim to appeal to newer consumer groups.</p><p>Government support extends through programmes such as Khadi Vikas Yojana, Gramodyog Vikas Yojana and the Prime Minister’s Employment Generation Programme. These initiatives provide support for finance, working capital, raw materials, training, toolkits, wages, marketing and digital payments. An evaluation by the Entrepreneurship Development Institute of India reported that more than 75% of artisans covered by the schemes experienced a measurable increase in income following the interventions.</p><p>Women are central to the sector’s contribution to rural livelihoods. Around 80% of approximately half a million Khadi artisans are women, giving the industry an important role in expanding income opportunities and financial independence. Village industries such as agarbatti production, handmade paper, honey-related activities and service businesses also provide opportunities for women to participate in local enterprise.</p><p>Export development is another area of focus as international buyers show interest in handmade, traceable, natural and environmentally responsible products. The Khadi and Village Industries Commission has registered as an Export Promotion Council on the Trade Portal of India’s Consulate General in New York and has begun efforts to improve international exposure for Khadi institutions. Geographical indication recognition for Ponduru Khadi may also help strengthen the identity and market value of distinctive traditional products.</p><p>Modernisation is being pursued alongside the preservation of traditional methods. The Central Sliver Plants at Chittadurga in Karnataka and Kuttur in Kerala have completed modernisation and become operational. The Chittadurga facility uses solar energy for half of its energy requirement, while technology-based common facility centres and further upgrades are proposed to strengthen village-industry clusters. Khadi’s low-energy production methods, potential for fibre recycling and exploration of naturally coloured cotton also offer opportunities to reduce environmental impacts. Together, these efforts aim to preserve heritage while creating more resilient rural enterprises and sustainable livelihoods.</p>