Question : MODERNISATION OF KHADI AND VILLAGE INDUSTRY



(a): whether there is sharp decline in Khadi production and employment over the preceding two decades;

(b): if so, the details thereof indicating the details of production of Khadi and Employment in this Sector in comparison to 1980`s;

(c): whether government proposes to redefine the role of the `Charkha` and the relevance of Khadi to the current planned economic growth; and

(d): the steps taken in this regard and to modernise Khadi and Village Industries?

Answer given by the minister


MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)

(a): The performance in terms of quantity and value of production and employment under Khadi increased steadily upto 1996-97 when the employment level reached 14.97 lakh persons with production of khadi at 111.49 lakh square meters worth Rs. 626.40 crore. There was a reduction in quantity to 98.20 million square metres although production value increased upto Rs. 635.89 crore in 1998- 99. Meterage of Khadi declined from 98.20 million sq. meters in 1998-99 (valued at Rs. 635.89 crore) to 69.89 million square metres in 2004-05 (valued at Rs. 461.54 crore) followed by a marginal increase upto 69.95 million square metres in quantity and Rs. 468.30 crore in value of khadi, with employment of 8.68 lakh persons, in 2005-06.

(b): The year-wise details of value of production of khadi and employment from 1980-81 to 2005-06 are given in Annex.

(c): Yes, Sir

(d): The steps taken by the Government, through the KVIC, include

(i) providing financial assistance under Product Development, Design Intervention and Packaging (PRODIP) Scheme for improved designs and packaging of khadi products,

(ii) launching `Mission Khadi` to convert the Khadi fabric into ready-made garments of latest designs, targeted mainly for the urban areas,

(iii) launching brand name `Khadi India` for khadi products,

(iv) launching the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) for implementation in 25 khadi clusters for their holistic development over five years beginning 2005-06,

(v) obtaining deemed Export Promotion Council status for KVIC from the Ministry of Commerce,

(vi) revamping of KVIC by reconstituting the Commission by inducting technical and other experts in Rural Development, Technology, Marketing, Engineering, etc.