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Khadi Sales Touch Record Rs 1.87 Lakh Crore in 2025-26

Khadi and village industry sales reached an all-time high of Rs 1.87 lakh crore in 2025-26, up 501 per cent on 2013-14, with employment at 2.04 crore.

By Published · 3 min read
Khadi Sales Touch Record Rs 1.87 Lakh Crore in 2025-26

Why in News

A PIB backgrounder of 13 October 2026 showed khadi and village industry sales at a record Rs 1.87 lakh crore in 2025-26, employment at 2.04 crore and a spinner's pay at Rs 15 per hank.

A PIB backgrounder issued on 13 October 2026 set out how far the khadi and village industries sector has travelled, from a spinning wheel in a village to a spread of rural enterprises making honey, herbal goods, banana fibre and cloth. At the middle of that change sits the Khadi and Village Industries Commission (KVIC), a statutory body created under the Khadi and Village Industries Commission Act, 1956. The Act asks it to plan, promote, organise and assist village industries, and to take care of their training, raw material, marketing, research and quality needs.

A record year for sales

Goods made by khadi and village industries sold for Rs 1.87 lakh crore in 2025-26, the highest figure the sector has ever posted, counted up to May 2026. Set against 2013-14, sales are higher by 501 per cent, while output has grown 380 per cent to Rs 1,25,296 crore. Jobs in the sector are up 56 per cent and now stand at 2.04 crore.

What the artisan earns

Pay at the wheel has moved with the sector. A spinner received Rs 4 per hank in 2013-14 and now gets Rs 15 per hank, a gain of close to 275 per cent. One hank runs to 840 yards of yarn and weighs a pound. Of the nearly five lakh artisans in khadi, more than 80 per cent are women.

Training and tools

The commission keeps a network of 35 departmental and non-departmental training centres, which teach trades as varied as bakery, beekeeping, agarbatti and candle making and motor repair. In 2025-26 its programmes trained 79,682 people, among them 47,382 women, or about 59 per cent of all trainees. The Gramodyog Vikas Yojana put 37,769 machines, toolkits and pieces of equipment into artisans' hands during the same year, carrying the scheme's running total beyond 3.23 lakh.

The schemes behind the figures

Through KVIC, the Prime Minister's Employment Generation Programme (PMEGP) has opened work for nearly 97.95 lakh people since March 2008. The Khadi Vikas Yojana, by way of its Modified Market Development Assistance, released Rs 245 crore to 1,097 khadi institutions in 2024-25 and so reached 1,45,484 artisans. Institutions that qualify can borrow at a concessional 4 per cent a year under the Interest Subsidy Eligibility Certificate (ISEC) scheme, and the Workshed Scheme, which pays for better production space, helped 1,309 artisans in 2025-26 up to December 2025.

Where khadi is sold

Apart from the online Khadi India store, KVIC runs 8 departmental sales outlets and 15 branches, and khadi institutions work another 8,035 outlets around the country. The Khadi Mahotsav, held each year from 2 October to 31 October, turns young buyers towards khadi and Vocal for Local. The fabric itself has been put on show at New Zealand Fashion Week 2026 and Lakme Fashion Week 2025.

IndicatorFigure
Sales, 2025-26Rs 1.87 lakh crore (record)
ProductionRs 1,25,296 crore, up 380 per cent on 2013-14
Employment2.04 crore, up 56 per cent
Spinner's payRs 4 to Rs 15 per hank
Trainees, 2025-2679,682, of whom 47,382 women

Important Facts

Nodal bodyKhadi and Village Industries Commission (KVIC)
Parent ActKhadi and Village Industries Commission Act, 1956
Sales, 2025-26Rs 1.87 lakh crore, an all-time high (up to May 2026)
ProductionRs 1,25,296 crore, 380 per cent above 2013-14
Employment2.04 crore, 56 per cent above 2013-14
Spinner's payRs 15 per hank, against Rs 4 per hank in 2013-14
One hank840 yards of yarn, one pound by weight
PMEGPNearly 97.95 lakh people employed through KVIC since March 2008
Khadi Mahotsav2 October to 31 October every year
Sales outlets8 departmental outlets, 15 KVIC branches and 8,035 institution outlets

Exam Point of View

Hold on to the parent Act of KVIC (1956), the record sales of Rs 1.87 lakh crore in 2025-26, production of Rs 1,25,296 crore, employment of 2.04 crore, the hank wage moving from Rs 4 to Rs 15 and the measure of a hank (840 yards, one pound), PMEGP's 97.95 lakh jobs since March 2008, and the Khadi Mahotsav window of 2 to 31 October.

Practice Questions

Q1.Government SchemesEasy

What were the sales of khadi and village industry products in 2025-26?

  1. A.Rs 1.87 lakh crore
  2. B.Rs 1.25 lakh crore
  3. C.Rs 2.04 lakh crore
  4. D.Rs 1.45 lakh crore
Show answer
Correct answer: A. Rs 1.87 lakh crore

Explanation

The correct answer is Rs 1.87 lakh crore. Sales of khadi and village industry products in 2025-26 reached this level, the highest ever recorded for the sector, with the count taken up to May 2026. Compared with 2013-14 the sales figure is 501 per cent higher, so the year marks a record rather than an ordinary increase. Option B of Rs 1.25 lakh crore confuses sales with production, because output stood at Rs 1,25,296 crore after growing 380 per cent. Option C of Rs 2.04 lakh crore borrows the employment number, since jobs in the sector rose 56 per cent to 2.04 crore people, which is a count of workers and not money. Option D of Rs 1.45 lakh crore mixes in the 1,45,484 artisans who gained from assistance released to khadi institutions in 2024-25, again a count of people. Only the first option gives the sales value for the year.

Q2.Government SchemesMedium

The Khadi and Village Industries Commission is a statutory body set up under an Act of which year?

  1. A.1948
  2. B.1951
  3. C.1956
  4. D.1962
Show answer
Correct answer: C. 1956

Explanation

The correct answer is 1956. KVIC is a statutory body established under the Khadi and Village Industries Commission Act of that year, and the Act is what gives the commission its mandate to plan, promote, facilitate, organise and assist village industries. The same mandate covers training, raw material supply, marketing, research and quality improvement, along with skill development and technical information for khadi and village industries. The other years do not carry this Act. Option A of 1948 belongs to the early years after independence and to the first industrial policy statement, not to this commission. Option B of 1951 is associated with the start of planned development in the country and not with khadi legislation. Option D of 1962 is later than the commission's creation and has no link with its founding law. Candidates should also recall that the commission now works under the Ministry of Micro, Small and Medium Enterprises.

Q3.Government SchemesMedium

In khadi spinning, one hank of yarn is equal to how much in length?

  1. A.640 yards
  2. B.840 yards
  3. C.1,000 yards
  4. D.1,200 yards
Show answer
Correct answer: B. 840 yards

Explanation

The correct answer is 840 yards. A hank is the unit in which a khadi spinner's work is measured, and one hank equals 840 yards of yarn in length and one pound by weight. The unit matters because artisan remuneration is paid on it: pay has gone up from Rs 4 per hank in 2013-14 to Rs 15 per hank at present, an increase of about 275 per cent. Option A of 640 yards, option C of 1,000 yards and option D of 1,200 yards are not the measure used for a hank, and a candidate who remembers only the round thousand will get the sum wrong. Women make up more than 80 per cent of the nearly five lakh artisans in the khadi sector, so this wage unit decides the earnings of a largely female workforce. Remember the pair together: 840 yards by length and one pound by weight.

Frequently Asked Questions

What were khadi and village industry sales in 2025-26?

They reached a record Rs 1.87 lakh crore, the highest ever recorded, counted up to May 2026. That is 501 per cent above 2013-14, while production rose 380 per cent to Rs 1,25,296 crore and employment grew 56 per cent to 2.04 crore.

Under which Act was KVIC set up?

Under the Khadi and Village Industries Commission Act, 1956. KVIC is a statutory body that plans, promotes, organises and assists village industries, and handles their training, raw material, marketing, research and quality improvement.

How much does a khadi spinner earn per hank?

Rs 15 per hank at present, against Rs 4 per hank in 2013-14, a rise of roughly 275 per cent. One hank equals 840 yards of yarn in length and one pound in weight.

When is Khadi Mahotsav held?

From 2 October to 31 October every year. The campaign is aimed mainly at young people, making them aware of khadi and Vocal for Local and urging the public to buy khadi and local products.

Sources