Indian Economy News

Khadi-Village Industries product sales cross US$ 20.80 billion in FY26

India’s Khadi and Village Industries sector has recorded historic growth across production, sales and employment generation over the last 12 years. In 2025-26, sales of Khadi and Village Industries products touched an all-time high of Rs.1.87 lakh crore (US$ 20.80 billion), while production reached Rs.1.25 lakh crore (US$ 13.96 billion). Compared to 2013-14, sales surged by 501% and production by 380%, highlighting the success of initiatives such as ‘Aatmanirbhar Bharat’, ‘Vocal for Local’ and ‘Local to Global’. Khadi textiles also witnessed remarkable expansion, with sales rising from Rs.1,081 crore (US$ 177.2 million) in 2013-14 to Rs. 7,869 crore (US$ 876 million) in 2025-26. Meanwhile, village industry product sales increased to Rs. 1,79,236 crore (US$ 19.96 billion), strengthening rural manufacturing and market access.

KVIC also achieved significant milestones in employment generation and entrepreneurship development. Total employment in the sector increased from 1.30 crore in 2013-14 to 2.04 crore in 2025-26. Under the PMEGP scheme, 66,494 new units were established in 2025-26 with margin money subsidy support of Rs. 2,457 crore (US$ 274 million) against loans worth Rs. 7,375 crore (US$ 820 million), generating employment for over 7.31 lakh people. KVIC further strengthened artisan livelihoods through large-scale distribution of toolkits and machines under Gramodyog Vikas Yojana, while women accounted for nearly 59% of trainees under various KVIC skill development programmes during the year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.