India’s Khadi and village industries sector recorded sales of ₹1.87 lakh crore in 2025–26, a milestone that places a traditional, artisan-led economic model at the centre of a much larger enterprise story.

According to the Ministry of Micro, Small and Medium Enterprises, sales have risen 501% since 2013–14, while production increased 380% to ₹1,25,296 crore. Employment in the sector grew 56% to 2.04 crore over the same period. The figures, published by the Press Information Bureau on October 13, point to a sector whose economic footprint extends well beyond hand-spun fabric.

Honey, bakery products, herbal preparations, incense sticks, packaging materials and other village industries are part of this network. Some businesses sell locally; others have reached international buyers. They draw on traditional skills and local resources, but increasingly depend on finance, equipment, product development and access to markets.

The next question is whether this expansion can produce more competitive rural businesses—enterprises that improve artisan earnings, build recognisable products and find customers beyond their immediate markets.

The charkha remains Khadi’s defining symbol, but village industries cover a much wider range of economic activity. Their development involves food processing, beekeeping, manufacturing, herbal products and other businesses that can be built around locally available skills and materials.

The Khadi and Village Industries Commission (KVIC), a statutory body established under the Khadi and Village Industries Commission Act, 1956, supports this activity through training, raw materials, research, technical assistance and marketing. Its role also includes improving quality and helping village industries organise production.

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