KVIC's Khadi Agarbatti Atmanirbhar Mission (KAAM) 2026 to Make India Self Reliant

Khadi Agarbatti Atmanirbhar Mission (KAAM) 2026 keeps running as part of Khadi and Village Industries Commission's (KVIC) Gramodyog Vikas Yojana, helping artisans and Self Help Groups set up agarbatti making units in villages across India. As per KVIC's own data released in May 2026, 2,674 automatic and pedal operated Agarbatti manufacturing machines have already reached artisans under this scheme.

Central government approved this scheme in August 2020 through Ministry of Micro, Small and Medium Enterprises, and KVIC has since folded it into the wider Gramodyog Vikas Yojana toolkit distribution drive, which also covers pottery wheels, bee boxes, footwear repair kits and other village trades. Full rollout of the KAAM scheme has created jobs for unemployed and migrant workers while pushing up domestic Agarbatti production at the same time.

KVIC had sent KAAM proposal to Ministry of MSME for approval in July 2020, and it got the green light on 2 August 2020. Pilot batches started soon after in select states, and the scheme has since grown well beyond that first phase.

KVIC's Khadi Agarbatti Atmanirbhar Mission 2026 - Full Details

As per Ministry of MSME's statement, KVIC built Khadi Agarbatti Atmanirbhar Mission (KAAM) scheme on Public Private Partnership (PPP) mode. This model needs very little upfront money from KVIC to create long term employment. Scheme also helps private agarbatti manufacturers scale up production without putting in their own capital. Under this arrangement, KVIC gives automatic agarbatti making machines and powder mixing machines to artisans, routed through private Agarbatti manufacturers who sign on as business partners.

Machines Distributed So Far Under KAAM Scheme

According to KVIC's provisional data for financial year 2025-26, released on 26 May 2026, 2,674 automatic and pedal operated Agarbatti manufacturing machines have gone out to artisans under Gramodyog Vikas Yojana till date. This figure sits inside a bigger tally too. Overall, Gramodyog Vikas Yojana gave out 37,769 machines, toolkits and other equipment during financial year 2025-26 alone, and 3,23,006 machines and toolkits since the scheme began, spread across trades like pottery, bee keeping, footwear repair and Agarbatti making.

KVIC Chairman Manoj Kumar shared this data at Gandhi Darshan, Rajghat in New Delhi, along with other numbers for the Khadi and Village Industries sector, including sales crossing ₹1.87 lakh crore for the year and artisan wages growing by up to 275 percent since 2013-14. These figures show a scheme that is still running and adding beneficiaries, not one that ended after its first pilot batches.

1000s of Jobs Created by KAAM Scheme

Central government decided to source only locally made machines from Indian manufacturers under KAAM scheme. KVIC gives 25 percent subsidy on machine cost and recovers the remaining 75 percent from artisans in easy monthly instalments. Business partners supply raw material to artisans and pay wages on job work basis.

Cost of training artisans gets shared too. KVIC bears 75 percent of training cost while business partner pays the remaining 25 percent. As per Ministry of MSME, each automatic Agarbatti making machine can make about 80 kg Agarbatti every day and gives direct work to 4 people. One powder mixing machine comes with every set of 5 Agarbatti making machines and gives work to two more people.

Earnings for Artisans Under Agarbatti Scheme

At current job work rate, artisans get ₹15 per kg for agarbatti making. So 4 artisans working together on one automatic machine can earn a minimum of ₹1,200 per day between them by making 80 kg agarbatti, which works out to ₹300 per day for each person. On powder mixing machine too, every artisan gets a fixed ₹250 per day. Business partners pay these wages weekly, straight into artisan bank accounts through DBT only.

Supply of raw material, logistics, quality checks and marketing of finished agarbatti stay with the business partner. Machine ownership moves to the artisan automatically once 75 percent of cost gets recovered. For this, a two party agreement gets signed between KVIC and private Agarbatti manufacturer.

Why Government Started Khadi Agarbatti Atmanirbhar Mission

KAAM scheme came about after central government restricted import of raw agarbatti and raised import duty on bamboo sticks. These two decisions opened up a big employment opportunity in Agarbatti industry, and KVIC designed Khadi Agarbatti Atmanirbhar Mission scheme to make the most of it.

Total daily consumption of Agarbatti in India works out to around 1,490 metric tonnes, while domestic production stood at just around 760 metric tonnes daily when this scheme got approved. KAAM scheme, now running through Gramodyog Vikas Yojana, aims to close this gap by helping more artisans and Self Help Groups take up Agarbatti making as a steady source of income.

Who Can Apply for KAAM Scheme

Eligibility rules for Khadi Agarbatti Pilot Project under KAAM scheme cover age, identity proof and family limits, so it helps to check these before applying at a KVIC state office.

• Applicant age should fall between 18 and 55 years, since the scheme is meant for working age artisans who can run a machine over the long term.
• Applicant needs an Aadhaar card, or Voter ID with photograph and ration card in cases where Aadhaar is not available.
• Only one person from a family can get an individual pedal operated or automatic Agarbatti machine, while two members from the same family can join as part of a group activity.
• Self Help Groups are eligible too, and every member of the group gets training in Agarbatti making before machines are handed over.
• People already trained by KVIC, KVIB, NABARD, KVK or other recognised training centres also qualify, and artisans already working with Khadi Village Industries institutions get preference in selection.

How to Apply for Khadi Agarbatti Scheme

Application process for KAAM scheme runs through KVIC's state and divisional offices rather than a single central online portal, so applicants need to keep an eye on local announcements.

STEP 1 - Watch out for local advertisements or awareness camps held by KVIC state office, Khadi Village Industries Board, NABARD or partner agencies about upcoming Agarbatti training batches in the area.

STEP 2 - Collect the application form and project proposal format from the nearest KVIC State or Divisional Director office, or check general scheme guidelines on the official website at kvic.gov.in.

STEP 3 - Submit the filled application along with Aadhaar card, photograph and other identity documents to the same KVIC office, either individually or as part of a Self Help Group.

STEP 4 - Once selected by the State level committee, attend the skill training batch, then collect the pedal operated or automatic Agarbatti machine as per allotment and start production under the buy back arrangement with the business partner.

Artisans who don't fit KAAM criteria, or want to set up a bigger unit on their own, can also check PMEGP Scheme for setting up a micro enterprise with bank loan support, or look at SFURTI Scheme, which supports traditional industry clusters that include Agarbatti making groups.

FAQ's

Is Khadi Agarbatti Atmanirbhar Mission still running in 2026?

Yes. Scheme continues as part of Gramodyog Vikas Yojana, and KVIC data from May 2026 shows 2,674 Agarbatti machines already handed out to artisans under it.

Who can apply for KAAM scheme?

Anyone between 18 and 55 years with valid Aadhaar or other ID proof can apply, and Self Help Groups can apply too. Artisans already working with Khadi institutions get preference.

How much subsidy does KVIC give on Agarbatti machines?

KVIC subsidy on automatic machine cost ranges from 25 to 35 percent depending on category, and the rest gets recovered from artisan earnings over time through monthly instalments.

How much can an artisan earn under this scheme?

An artisan working on an automatic agarbatti machine can earn around ₹300 per day, and someone on a powder mixing machine gets a fixed ₹250 per day, paid weekly through DBT.

Where can someone apply for KAAM scheme?

Application happens through KVIC State or Divisional Director office in states like Bihar, Uttar Pradesh, Odisha, Rajasthan, Maharashtra and Karnataka, not through a central online portal.

Source / Reference Link: https://pib.gov.in/PressReleasePage.aspx?PRID=1643012#:~:text=The%20program%20named%20as%20%E2%80%9CKhadi,increasing%20domestic%20Agarbatti%20production%20substantially.

KVIC's financial year 2025-26 data on Gramodyog Vikas Yojana and Agarbatti machine distribution: https://pib.gov.in/PressReleasePage.aspx?PRID=2265369