AI SummaryGramodyog Vikas Yojana (GVY) is running under the Khadi Gramodyog Vikas Yojana (KGVY) umbrella of the Khadi and Village Industries Commission (KVIC), Ministry of Micro, Small and Medium Enterprises (MSME), and KVIC state offices have invited fresh applications for 2026-27. The 2026-27 budget keeps ₹87.13 crore for the Gramodyog Vikas Yojana, which is higher than the ₹60 crore given in 2025-26.
The scheme gives free skill training plus tool kits and machinery to artisans in village industries like agarbatti making, beekeeping, pottery, leather footwear, handmade paper and service trades. In the 2026-27 budget, the government also announced the Mahatma Gandhi Gram Swaraj scheme to give more support to khadi, handloom and handicrafts, so the sector is getting fresh backing this year.
Khadi Gramodyog Vikas Yojana - Gramodyog Vikas Yojana Introduction
Khadi Gramodyog Vikas Yojana is a Central Sector Scheme of the Ministry of MSME, run by KVIC. In November 2019, all the older khadi and village industry schemes were merged into this one umbrella scheme. KGVY has three parts: Khadi Vikas Yojana (KVY) for the khadi sector, Gramodyog Vikas Yojana (GVY) for village industries, and Khadi Grant for the staff expenses of KVIC. This article covers the Gramodyog Vikas Yojana part, which is the training and tool kit scheme.
GVY works through six industry groups: Wellness and Cosmetics Industries, Handmade Paper, Leather and Plastic Industries, Agro Based and Food Processing Industries, Mineral Based Industries, Rural Engineering and New Technology Industries, and the Service Industry. Under these groups, KVIC runs training programmes and gives machines like agarbatti machines, electric potter wheels, bee boxes, footwear tool kits and service trade tool kits. An evaluation study done for KVIC in 2026 through the Entrepreneurship Development Institute of India recommended continuing the scheme, and KVIC has kept inviting applications for 2026-27.
For the khadi side of the umbrella scheme, which gives MMDA production subsidy, interest relief and workshed support, see the separate article on Khadi Vikas Yojana.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Khadi Gramodyog Vikas Yojana: Gramodyog Vikas Yojana |
| Launched By | Khadi and Village Industries Commission (KVIC), Ministry of MSME |
| Beneficiaries | Indian citizens aged 18 to 55 years, mainly artisans, rural youth and women |
| Benefit Type | Free skill training plus tool kits and machinery |
| Budget 2026-27 | ₹87.13 crore for GVY; ₹1,094.51 crore for the full KGVY |
| Application Mode | Offline through KVIC state and district offices |
| Official Website | kvic.gov.in |
Benefits
GVY gives two kinds of support: training in the trade first, and then the tools or machinery needed to start production. The exact support depends on the industry group chosen. KVIC pays most of the cost, and the selected person pays only a small own contribution.
| Industry | Support Given |
|---|---|
| Agarbatti | 10 day skill training with pedal operated or automatic agarbatti machines. An automatic machine costs about ₹1,20,000 per unit. |
| Beekeeping | 10 day training plus 10 bee boxes with live bee colonies and a full tool kit. |
| Pottery | Wheel pottery training, electric potter wheels (about ₹20,000) and blungers (about ₹34,000). |
| Leather Footwear | About one month of training at CFTI, FDDI or other training centres, plus machinery and tools worth about ₹60,000 per artisan. |
| Rural Engineering | Training in waste wood, turn wood, wooden toys and Panchgavya products with tool kits. |
| Handmade Paper and Fibre | Training in paper conversion, paper plate and dona making, paper mache and fibre extraction, with machines. |
| Agro Food Processing | Training in oil, spices, palm gur and bamboo products with processing equipment. |
| Service Industry | Vocational training for electricians, plumbers and similar trades, plus tool kits. |
KVIC pays 90% of the machine and tool cost for SC and ST candidates, 80% for the general category and 100% for BPL families. In the north eastern states, KVIC pays 95% for SC and ST candidates, 90% for the general category and 100% for BPL families. For agarbatti work under this scheme, see the details on Khadi Agarbatti Atmanirbhar Mission (KAAM).
Eligibility
Check that you meet the basic conditions given below before applying.
- Any Indian citizen between 18 and 55 years of age can apply.
- A valid Aadhaar card or any other government issued identity card is required.
- Only one person from one family can get support under the scheme.
- People who have already taken benefit from another government scheme for the same purpose cannot apply.
- Persons already trained by KVIC, KVIB, NABARD, ITI, RSETI or similar agencies are also eligible for the tool support.
- Preference is given to SC/ST candidates, women, unemployed youth and BPL families, and also to surrendered naxalites or extremists, widows of defence and para military personnel, and militancy affected families.
Application Process
Applications for 2026-27 are invited through the KVIC state offices, and the process is offline. For example, the Karnataka state office invited applications till 07 August 2026, the Kerala state office extended its last date to 14 August 2026, and the state offices at Kolkata, Vijayawada and Patna have set deadlines in August 2026. The application form and scheme details are available on the official website kvic.gov.in.
STEP 1 - Go to the official website at kvic.gov.in and download the Gramodyog Vikas Yojana application form and scheme details.
STEP 2 - Fill in the form with your name, father or husband name, date of birth, address, mobile number, Aadhaar number and the GVY vertical you want to apply for.
STEP 3 - Attach two recent passport size photographs and self-attested copies of your documents.
STEP 4 - Submit the filled form, self declaration and documents to the KVIC state office or district office of your area before the last date.
STEP 5 - KVIC field offices select beneficiaries through the state level committee and call the selected candidates for training.
STEP 6 - After the training is completed, the machinery or tool kit is given through the district office. Bank details are registered on the Udyam Assist Platform (UAP) for this.
Documents
Keep these documents ready before you start the application.
- Duly filled and signed application form with two recent passport size photographs.
- Aadhaar card and proof of date of birth.
- Address proof, if the current address is different from the Aadhaar address.
- Educational qualification certificate.
- Caste certificate, wherever applicable.
- Ration card.
- Active bank passbook showing the account holder name, account number and IFSC code. This is needed for registration on the Udyam Assist Platform.
- PAN card, if available.
- Training certificate, if trained earlier under KVIC, KVIB, NABARD, RSETI, ITI or any other government recognised institute.
- Self declaration that no other family member has applied under GVY and no similar benefit has been taken from any other government scheme.
References
For full scheme rules, check the official documents given below.
- Revised guidelines of Gramodyog Vikas Yojana (KVIC)
- KVIC Gramodyog Vikas Yojana applications page
- GVY application notice for Karnataka (2026-27)
- MSME Scheme Booklet 2025-26
- MSME Notes on Demands for Grants 2026-27
- Rajya Sabha answer on KGVY (9 February 2026)
FAQ's
Is the Gramodyog Vikas Yojana still running in 2026?
Yes. KVIC keeps running GVY under the Khadi Gramodyog Vikas Yojana umbrella. KVIC state offices have invited applications for 2026-27, and the 2026-27 budget keeps ₹87.13 crore for the scheme, which is more than the ₹60 crore given in 2025-26.
What is the last date to apply for GVY in 2026?
There is no single last date for the whole country. Each KVIC state office fixes its own deadline. In August 2026, the Karnataka state office closed applications on 07 August 2026, Kerala extended its date to 14 August 2026, and the state offices at Kolkata, Vijayawada and Patna have deadlines up to 28 August 2026. Check the kvic.gov.in page of your state office for the latest date.
Do you have to pay for the training?
No. The training under GVY is free for the selected beneficiaries. Under the Honey Mission training, SC, ST, women and physically handicapped candidates do not pay any fee, while other candidates pay ₹500.
How much do you have to pay for the machines?
It depends on your category. SC and ST candidates pay 10% of the cost, the general category pays 20% and BPL families pay nothing. KVIC pays the rest. In the north eastern states the own contribution is lower.
How to apply for the Gramodyog Vikas Yojana?
Download the application form from kvic.gov.in, fill it, attach the documents and two passport photos, and submit it to the KVIC state or district office of your area before the last date. The process is done through the field offices, and there is no online application for this scheme.
Which activities are covered under GVY in 2026-27?
For 2026-27, KVIC state offices have invited applications for beekeeping, electric wheel pottery, electrician training, basic plumber training, sewing machine operator training, agarbatti making, footwear manufacturing and repairing, and wooden toy making.
What is Khadi Gramodyog Vikas Yojana?
It is the umbrella scheme of KVIC under the Ministry of MSME, started in November 2019 by merging all older khadi and village industry schemes. It has three parts: Khadi Vikas Yojana, Gramodyog Vikas Yojana and Khadi Grant. Gramodyog Vikas Yojana is the part that gives village industry training and tool kits.