Khadi Gramodyog Vikas Yojana (also known as Khadi Vikas Yojana) is a central government scheme run by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MSME). KVIC keeps running this umbrella scheme for Khadi artisans and institutions, and it was given ₹1,066 crore in the 2025-26 budget. 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 keeps getting strong backing through 2026.
This scheme gives financial help, infrastructure support and marketing guidance to improve production, raise artisan wages and modernize rural industries. Registration for both Khadi institutions and individual artisans is open right now, and the full application is done online through the official KVIC portal.
Khadi Gramodyog Vikas Yojana: Khadi Vikas Yojana - Introduction
Khadi Gramodyog Vikas Yojana works as the main umbrella program of KVIC for the Khadi and village industries sector. Its main aim is to bring new life to traditional rural skills and raise the overall output of the sector. Through this scheme, the government gives Khadi institutions and artisans strong support, from financial grants to modern production facilities.
The scheme helps strengthen production capacity, cuts the burden of high loan interest for institutions, and supports building clean workspaces. It also helps renovate old retail outlets so Khadi products reach more customers. With the Mahatma Gandhi Gram Swaraj scheme announced in the 2026-27 budget, the focus is on better training, quality, branding and global market links for Khadi products.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Khadi Gramodyog Vikas Yojana (Khadi Vikas Yojana) |
| Run By | KVIC, Ministry of MSME |
| Coverage | Central, All India |
| Eligible People | Khadi artisans and Khadi institutions |
| Main Support | MMDA subsidy, ISEC interest relief, workshed grants, marketing help |
| Application Mode | Online through KVIC portal |
| Official Website | kviconline.gov.in |
Main Support Under the Scheme
This scheme gives many kinds of support to help you grow your Khadi business well.
| Category | Details/Subsidy Amount |
|---|---|
| Modified Market Development (MMDA) | 35% subsidy on Prime Cost for Cotton, Muslin, Wool and Polyvastra; 20% for Silk Khadi. |
| Individual Workshed | Up to ₹1,20,000 or 75% of cost (90% for NER). |
| Group Workshed | Up to ₹80,000 per artisan or 75% of cost (90% for NER). |
| Revival of Weak Institutions | Financial support up to ₹15 lakh. |
| Marketing Infrastructure | Renovation support for sales outlets up to ₹25 lakh. |
Under the Interest Subsidy Eligibility Certificate (ISEC), you only have to pay a 4% interest rate on your bank loans. KVIC covers the remaining interest amount, which makes running your operations much more affordable. You also get help through specialized Centres of Excellence, quality checks, and national exhibitions to show your work.
Who Can Apply
Before applying, check that you meet the basic conditions given below.
- You should be a Khadi artisan or a Khadi institution registered with KVIC or KVIB.
- You must be between 18 and 55 years of age.
- You need a valid Aadhaar card or another government-approved identity document.
- Only one person per family can get support under this scheme.
- You cannot claim benefit from another government scheme for the same purpose.
- Priority is often given to SC/ST candidates, women, unemployed youth and poor (BPL) families.
How to Apply Online
Follow these simple steps to complete the online application for Khadi institution registration.
STEP 1 - Go to the official KVIC online portal.
STEP 2 - Choose the option for Online Registration of Khadi Institutions on the portal.
STEP 3 - Enter your institution details correctly, including address, registration type and infrastructure details, then save your progress.
STEP 4 - After submitting, you will get your username and password on your registered email or mobile number. Keep the acknowledgment receipt safe.
STEP 5 - Log in to your account to upload final documents such as the bylaws and artisan list.
STEP 6 - KVIC officials will check your institution. Once approved, you can download your Certificate of Registration (CoR) from the portal.
Required Documents
Keep these documents ready before you start the application.
- Aadhaar card or any valid government-approved identity document.
- Proof of age.
- Your official Khadi artisan card or institution registration certificate.
- Active bank account details for payments.
- Caste certificate if you belong to SC/ST category.
- BPL certificate if applicable for priority.
- Detailed project proposal or workshed requirement, if needed.
References
For full scheme rules, see the MSME Scheme Booklet and the official KVIC portal. For the 2026-27 Mahatma Gandhi Gram Swaraj scheme, see the PIB announcement.
FAQ's
What is Khadi Vikas Yojana (KGVY)?
It is a major Government of India scheme run by the KVIC to support Khadi production, improve livelihoods, and strengthen institutions through marketing and export opportunities.
What financial support is given?
You get support through production subsidy (MMDA), interest rate relief (ISEC), grants for worksheds, and funds to revive weak institutions or upgrade sales outlets.
How does the MMDA subsidy work?
It gives a 35% subsidy on the prime cost of cotton, muslin, wool and polyvastra, and 20% for silk. This helps lower product cost and raise wages.
How do I benefit from ISEC?
Through ISEC you only pay a 4% interest rate on bank loans and KVIC pays the rest of the interest for you as a special subsidy.
What support is given for worksheds?
The scheme gives funds to build individual or group worksheds, which include toilets, so you get a clean and comfortable work place.
Is the scheme still running in 2026?
Yes. KVIC keeps implementing the scheme, and the 2026-27 budget announced the Mahatma Gandhi Gram Swaraj scheme to give more support to khadi and handicrafts.
What is the age limit to apply?
You must be between 18 and 55 years old and provide valid identity proof at the time of application.
Can everyone in my family apply?
No. The scheme limits the benefit to one person per family so that support is shared fairly.