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PERFORMANCE OF KHADI AND VILLAGE INDUSTRIES COMMISSION THROUGH

MICRO, SMALL, & MEDIUM ENTERPRISE

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AEGAEUM JOURNAL ISSN NO: 0776-3808

PERFORMANCE OF KHADI AND VILLAGE INDUSTRIES COMMISSION

THROUGH MICRO, SMALL, & MEDIUM ENTERPRISE
M.Alaguraja, Dr.G.Nedumaran and M.Manida
Research scholar, Associate Professor, Research scholar
Department of Commerce,
Alagappa University, Karaikudi.
E-mail:[email protected]

ABSTRACT
Micro, Small and Medium Enterprise (MSME) Sector plays generally major role in
the growth and development of our financial system. After autonomy the Government of
India emphasizes on the expansion of MSME sector for brisk Industrialization. India
accorded high priority to Small and Medium Enterprises (SMEs) from the incredibly
establishment and pursued support policies to make these enterprises feasible, lively and over
time, these have become major contributors to the GDP. Moreover, the MSME sector has
worn and overcome stiff competition in the spot liberalization era in the domestic and
International field. The sector has faced a number of enactments and amendments in the
policies and programmes between the first Industrial Policy and Micro, Small and Medium
Enterprises Development Act for better performance. It has acquired a reputable rest in the
socioeconomic contribution of India even after various shortcomings in the strategy proposal,
poor infrastructure, inadequate training, incomplete credit facility, higher sickness rate and so
forth. The aim of this article is to compute and compare performance variables of Khadi and
Village Industries Commission (KVIC) through MSME between the Khadi industry
Performance and Village industry Performance as well as to examine the interrelationship
among variables plus the functional relationship between variables.
Keywords: GDP, liberalization, Industrial Policy, credit facility, KVIC.

I. INTRODUCTION
The Khadi and Village Industries programme acting a major role in given that service
opportunities to rustic artisans more purposely to the weaker strata of the culture (Gaurav
Katoch (2018).KVIC is accused of the arranging, advancement, association and usage of
projects for the improvement of Khadi and other town ventures in the country zones as a team
with different offices occupied with rustic advancement any place necessary.Its works
additionally include developing of a save of crude materials and actualizes for supply to
makers, formation of normal help offices for handling of crude materials as semi-completed
merchandise and arrangements of offices for promoting of KVI items separated from
association of preparing of craftsmans occupied with these enterprises and consolation of co-
usable endeavors among them. To advance the deal and promoting of khadi or potentially
results of town businesses or crafted works, the KVIC may produce linkages with set up
showcasing organizations any place attainable and vital. In executing KVI exercises, the
KVIC may make such strides as to guarantee the validity of the items and to set principles of
value and guarantee that the results of Khadi and town enterprises do fit in with the
benchmarks. The KVIC may likewise attempt legitimately or through different organizations
thinks about concerning the issues of Khadi or potentially town businesses other than
investigate or setting up pilot ventures for the advancement of Khadi and town enterprises.

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MSMEs are reciprocal to enormous ventures as auxiliary units and this division contributes
essentially to the comprehensive modern improvement of the nation.
The MSMEs are broadening their area crosswise over the divisions of the economy,
delivering assorted scope of items and administrations to satisfy needs of local just as
worldwide markets. Chennai (Tamilnadu) under "A Scheme for Promotion of Innovation,
Entrepreneurship and Agro Industry (ASPIRE)" of this Ministry. Associations looking into
fused worth chains are depended upon to go about as a crucial assistant giving agribusiness
division opportunities to rural creators, similarly as sharing development, aptitudes, and data
significant to them. The Micro, Small and Medium Enterprises (MSME) segment has
developed as a profoundly lively and dynamic part of the Indian economy throughout the
most recent five decades. It contributes essentially to the monetary and social improvement of
the nation by encouraging business enterprise and producing biggest work openings at the
relatively lower capital expense, next just to farming. Assets are restricted and human needs
are boundless, it is significant for the advertisers to use the assets viably and productively
without squander just as to accomplish the association's target. So green showcasing is
unavoidable (M.Manida, et al (2015). Service of Micro, Small and Medium Enterprises
(MSME) imagines a dynamic MSME segment by advancing development and advancement
of the Sector, including Khadi, Village and Coir Industries, in collaboration with the
concerned Ministries/Departments, State Governments and different Stakeholders, through
offering help to existing undertakings, receiving front line advances and empowering making
of new endeavors. India has an enormous buyer and as such engaging spot for trading of it's
free outside trading approach (G.Nedumaran, et al (2019). Various statutory and non-
statutory bodies work under the aegis of the Ministry of MSME. These incorporate the Khadi
Village Industries Commission (KVIC) and the Coir Board other than National Small
Industries Corporation (NSIC), National Institute for Micro, Small and Medium Enterprises
(NIMSME) and Mahatma Gandhi Institute for Rural Industrialisation (MGIRI).

II. FOCUS ON AGRICULTURE

Agribusiness remains the essential part for the monetary improvement and the nation
ought to act naturally adequate with cotton and nourishment items. Through this paper, it is
surely known that the natural cultivating utilizes manure, which are non-unsafe and
hazardous to the yield (G. Nedumaran, et al (2019). Much following seven many years of
Independence, horticulture stays in the news for rancher suicides and misery, brought about
by long periods of unconcerned policymaking. This administration has guaranteed a total
rebuild of the horticulture area and the cultivating economy. The Prime Minister has gotten
under way a progression of basic changes to the horticulture area to change it into a suitable
venture and monetarily enable ranchers. Markets are wide zone yet interface the entire
mandis. Evacuate the misty overseer in the mandis. The Government will take the brisk
directing expansion to clientele (G.Nedumaran, et al (2019). Long haul activities like
electronic national agribusiness showcase (e-NAM), recharged center around water system
through the Pradhan Mantri Krishi Sinchayee Yojana, accentuation on the wellbeing of the
dirt through the Soil Health Card plot, neem-covering of urea, a rancher inviting crop
protection conspire PMFBY are altogether intended to understand the objective of
multiplying ranchers' pay by 2022.
However, it was clear there was required for change, support before ranchers could
really pick up from an open, disinter intervened showcase. This had come through higher
MSPs, a major help for the time being. Portion of ₹1, 400 crore for the nourishment preparing
industry, ₹200 crore for rural markets, the declaration of Operation Green to guarantee all

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year generations of onions, tomatoes, and potatoes, and stretching out Kisaan Visa
advantages to fisherfolk will support the country's economy and help customers. The MSME
area is a work serious employment maker. It is a basic piece of our inheritance monetary
model and structures, some portion of the basic inventory network for items and
administrations. The portion of the part in the nation's Gross Value Added (GVA) is around
32 percent; MSMEs assume a critical job in giving huge scale work and in the
industrialization of the country and in reverse regions. MSMEs represent 17.4 percent of all
out NPAs today. They have been trapped in the pincer impact of the NPA emergency and
change the effects of demonetization. I have been asking the Government to make a one-time
rebuilding window for MSMEs with their NPAs and lift progress backing to MSMEs. The
money serves has guaranteed help on the issue of NPAs for MSMEs. The allotment of ₹3,794
crore for credit backing to MSMEs is welcome. Decreased personal duty paces of 25 percent
to MSMEs with another edge of ₹250 crore is additionally an invite step. Further, the account
serve has reacted to my solicitation to give some alleviation to the cashew segment by
lessening traditions obligation on cashew to 2.5 percent from the present 5 percent.

III. REVIEW OF LITERATURE

Akshita Rana, and Rajesh Tiwari (2014), in their paper entitled “MSME Sector: Challenges
and Potential Growth Strategies” concluded that the MSME sector has been growing based
on the entrepreneurial zeal of the promoters. In the era of globalization, the MSME sector has
to grow in size, become more efficient and adopt the latest technology to be relevant to its
customers and society. The credit flow needs immediate attention. Capital is the lifeline of
any business.
Bhoomika Garg (2014), “Role of MSMEs In Economic Development”, concluded that is the
major constituent sector in employment generation, production system, enhancing exports
and GDP. But, there is a need to carefully nurture and support this sector. Joint effort is
needed from the Govt. And MSMEs to acquire technological effectiveness. Financial support
needs to be ensured taking into consideration the growing investment demand, including the
requirements of technological transformation. This sector needs to adopt a proactive approach
where the Govt. Should propose a long term strategy to sustain themselves in the changing
economic scenario and progress beyond the current GDP growth.
Barki, Vibhuti (2015), in their paper entitled “MSME’s in India- An overview”, observed
that Micro and small industrial unit by providing the essential service and requirement and
encourage the entrepreneurs make them stand on their own and provide the employment
opportunity through the innovative skills and ideas. In the light of the above factors the
Government of India is set up the exclusive institution for the growth and development of the
small and micro enterprises. Over a decade MSME’s major contributor in the development of
small and medium industries and entrepreneurs in particular. The present paper focuses an
introductory aspect relating to MSME’s in India and its organizational setups.

IV. OBJECTIVE OF THE STUDY

1. To study the Khadi and Village Industries Commission MSME in Indian Economy.
2. To evaluate the challenges faced by Khadi and Village Industries Commission
through MSME’s in India.
3. To analysis the financial performance of Khadi and Village Industries Commission
through MSME’s in India

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V. ARI DIVISION
The ARI Division looks after the administration of two statutory bodies
All field organizations under the Ministry, namely, Office of Development
commissioner (Micro, Small and Medium Enterprises), Khadi and Village Industries
Commission (KVIC), National Small Industries Corporation (NSIC), Coir Board, National
Institute for Micro, Small and Medium Enterprises (Ni-MSME), Mahatma Gandhi Institute
for Rural Industrialization (MGIRI) opened GST Cells in their respective offices to provide
requisite support to MSMEs with respect to GST issues. More than 20000 persons have been
trained in the various nuances of GST through workshops by M/o MSME and all its field
organizations.

VI. KHADI VILLAGE INDUSTRIES COMMISSION (KVIC)

The Khadi Village Industries Commission (KVIC) Khadi & Village Industries
Commission (KVIC) established under the Khadi and Village Industries Commission Act,
1956 (61 of 1956), is a statutory organization under the aegis of the Ministry of MSME.

VII. THE MAIN OBJECTIVES OF KVIC

1. The communal aim of on condition that employ in rustic areas;
2. The trade and industry goal of producing commercial articles; and
3. The wider intention of creating self-reliance among people and construction up a
strapping rural village strength.

Functions
The elements of KVIC as recommended under the KVIC Act, 1956 and the Rules
made there under, include:
i. To design and sort out preparing of people utilized or envious of looking for work in
KHADI and town ventures.
ii. To develop straightforwardly or through indicated organizations stores of crude
materials and actualizes and supply them or mastermind supply of crude materials and
executes to people connected with or liable to be occupied with generation of hand spun yarn
or KHADI or town businesses at such rates as the Commission may choose.
iii. To empower and aid the formation of basic assistance offices for the preparing of
crude materials or semi-completed merchandise and generally encourage creating and
showcasing of khadi or results of town ventures.
iv. To advance the deal and advertising of khadi or results of town enterprises or
handiworks and for this reason the manufacture joins with set up promoting organizations
any place fundamental and possible.
v. To support and advance research in the innovation utilized in khadi and town
enterprises, including the utilization of non-traditional vitality and electric power with the end
goal of expanding efficiency, wiping out drudgery and generally upgrading their aggressive
limit and to orchestrate dispersal of notable outcomes got from such research; Statutory
bodies.

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vi. To embrace straightforwardly or through different organizations, investigations of the

issues of khadi or town businesses.
vii. To give budgetary help straightforwardly or through indicated offices to organizations
or people occupied with the advancement and activity of khadi or town enterprises and guide
them through the supply of plans, models and other specialized data, to create products and
ventures for which there is viable interest in the assessment of the Commission;
viii. To attempt legitimately or through indicated offices, trials or pilot ventures which in
the assessment of the Commission, are essential for the advancement of khadi and town
businesses;
ix. To build up and keep up isolated associations to complete any or the entirety of the
above issues.

VIII. KHADI SECTOR IN INDIA

Khadi movement is considered as a potential apparatus for making of business
openings at the doorstep of provincial craftsmen at a low capital venture. Following freedom,
Khadi and Village profitability turned into the excellent image of patriotism. In that capacity,
Khadi came to be referred to as a bit of material, however as an image of opportunity and
independence.
Generation of Khadi and polyvastra is by a wide margin the biggest provincial
profitability program on the planet. It gives the rustic networks a high incentive for their
exertion while giving the customers incentive to cash. KVIC is a statutory association
entrusted with the job of advancing the generation and closeout of Khadi. More than 2375
organizations structure the tremendous system that is actualizing the goal and projects of
KVIC in India. Over 4.56 lakh individuals are occupied with their exercises under KVIC, a
larger part of which (more than 70 percent) are ladies. Khadi is the one of a kind program of
KVIC and a strong device for formation of work at the craftsmans' doorstep being actualized
by 2375 Khadi Institutions. The help gave through the Market Development Assistance
(MDA) and Interest Subsidy Eligibility Certificate (ISEC) Scheme is empowering Khadi
foundations to give work chances to 4.56 lakh customary craftsmen living in the rustic
regions.

Arrangement Industries
1. Mineral Based Industry Pottery
Emerald
2. Agro Based and Food Processing
 Industry (ABFPI)
 Pulses and Cereals Processing Industry
 Gur and Khandsari Industry
 Palmgur Manufacturing
 Fruit and Vegetable Processing Industry
 Rural people group Oil Industry
3. Polymer and Chemical Based Industry (PCBI)
 Fleece Industry
 Non Edible Oils and Soap Industry
 Cottage Match Industry

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 Plastic Industry
4. Forest Based Industry (FBI) Medicinal Plants Industry
Bee Keeping Industry
Minor Forest Based Industries
5. Hand Made Paper and Fiber Industry (HMPFI)
 Hand Made Paper Industry
 Yarn Industry
6. Rural Engineering and Bio Technology
 Commerce (REBTI)
 Non-Conventional Energy
 Woodwork and Black smithy
 Electronics
7. SEP/Service Industry

IX. DIFFICULTIES FACED BY KHADI SECTOR:

1. The greatest challenge for Khadi is from the handloom, factory made, marked
ethnic fragment from one viewpoint and from fake, deceptive, resemble the other
the same items being sold as khadi the whole way across the nation.
2. Khadi being an item known for its rich legacy and passionate esteem likewise
tosses open the whole ethnic product section to be overwhelmed with items and
brands. Creating a market arranged, current items prepared for design cognizant
youth is a test to be met, just as a chance to be gotten the money for on.
3. Steady deal and better yields are fundamental to compensate the craftsman well on
schedule and furthermore a consistent increment in compensation is an absolute
necessity to keep the craftsmen in the stream.
4. Modernization of gear and the tasks of the Khadi Institutions and remodel of
stores are the other huge difficulties.
X. LATER KEY ACTIVITIES BY KVIC TO ADVANCE KHADI:
Later Strategic activities by KVIC have been taken to advance the creation and deal at
units stand all over India for Khadi and Village businesses:

Promoting exercises
Three new deals outlets/Lounge "Khadi India" have been set up in Jaipur, Mumbai
and New Delhi.
KVIC likewise found a way to build up its market by union with the Corporation,
PSUs, and the Ministries.
Khadi Denim Products kept on making Khadi textures and array speaking to the
young as an image of 'Swadeshi Khadi Fashion'.
KVIC has taken the way separating activity to open, chief Khadi Showrooms to make
accessible head Khadi fashioner items in modern showrooms through the KVIC Franchise
Outlets in 15 chose urban areas to showcase the KVI items delivered by business
visionaries/establishments.

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XI. DEVELOPMENT IN THE KHADI INDUSTRY AND VILLAGE INDUSTRIES

Khadi and Village Industries exercises are the information asset of work for
provincial and urban individuals who to a great extent in corporate spinners, weavers and
different craftsmen spread the nation over. The similar presentation of KVIs during 2014-15,
2015-16 and 2016-17 is given in the table beneath, and shows powerful development.
Table 1
Comparative performance of Khadi and Village Industries
(Rs. In crore, Employment: In lakh persons)
Particular / Year 2014- 15 2015- 16 2016- 17 2017- 18

1. Production Khadi 879.98 1065.60 1520.83 1069.46

Village 26689.39 33424.62 41110.26 44656.23

Total 27569.37 34490.22 42631.09 45725.69

2. Sales Khadi 1170.38 1510.00 2146.60 1069.46

Village 31965.52 40384.56 49991.61 54424.07
Total 33135.90 41894.56 52138.21 55750.40

3. Employment Khadi 11.06 11.07 4.56 4.56

Village 123.19 126.76 131.84 133.23
Total 134.25 137.83 136.40 137.79

Source: Annual report 2017-18 (msme.gov.in)

Chart. 1

KVIC- PRODUCTION
Yearwise
Series2 Series3 Series4 Series5 Series6

42631.09 45725.69
34490.22
27569.37
41110.26 44656.23
26689.39 33424.62
0 0 879.98 1065.6 1520.83 1069.46
Particular / 2014- 15 2015- 16 2016- 17 2017- 18
Year

Chart 1. Above the chart mentioned in KVIC Production of both Khadi Industry and Village
Industry. This analysis mentioned in 2014 to 2018 financial performance of KVIC. First year
of table red color in Khadi Industry and green color on Village Industry Total of blue color.
In the 1st year 879.98 Crore of khadi industry and 26689.39 Crore Village Industry. Year of
2017-18 Production 1069.46 Crore of khadi industry and 44656.23 Crore Village Industry

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XII. CONCLUSION
The KVIC is also charged with the dependability of hopeful and promoting research
in the production techniques and equipment employed in the Khadi and Village Industries
sector and provided that facilities for the revision of the problems relating to it, including the
use of non-conventional energy and emotional influence with a view to increasing
productivity, eliminating graft and otherwise enhancing their competitive capacity and
arranging for distribution of salient results obtained from such explore. Further, the KVIC is
entrusted with the task of providing financial assistance to institutions and individuals for
expansion and process of Khadi and village industries and guiding them through the supply
of designs, prototypes and other practical information. The dogmatic establishment and
industrialized bodies, including banks and financial institutions need to work together to
develop the institutional and regulatory framework to support MSME sector. The infusion of
equity capital will bring vigor to the MSME sector by reducing the dependency of bank
funds. The triple spiral approach has a great potential to convert the ingenious talent and the
energy of the students to provide technical and management consultancy along with
production and the government uphold for capital, intellectual property, training, industrial
society for growth of MSME sector.

XIII. ACKNOWLEDGEMENT
This article has been written with the Financial Support of RUSA 2.0 Grant
vide letter no. F24-51/2014-U Policy (TN-Multi-Gen), Department of Commerce,
Government of India, dated 09.10.2018.
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 Akshita Rana, Rajesh Tiwari, MSME Sector: Challenges and Potential Growth
Strategies, International Journal of Entrepreneurship & Business Environment
Perspectives Volume 3, Number 4, October – December’ 2014, ISSN (Print):2279-
0918, (Online):2279-0926.
 Bhoomika Garg (2014), “Role of MSMEs in Economic Development”, Research
Journal of Entrepreneurship, Vol. 2, February 2014.
 G. Nedumaran, M. Manida (2019), Trends and Impacts of E-Nam in India, ISBN: 978-81-
8094-323-2. www.researchgate.net.
 G. Nedumaran, M. Manida. (2019), Green marketing impact of the agriculture products.
International Journal of Advance and Innovative Research, Vol-6, Iss-2, ISSN: 2394-7780.
 G.S. Barki, S.G. Vibhuti , MSME’s in India- An overview, International Journal of
Multidisciplinary Research and Development, Volume- 2, Issue: 9, 688-691, Sep
2015. e- ISSN: 2349-4182.
 G. Nedumaran, M. Manida (2019), Impact of FDI in Agriculture Sector in India. International
Journal of Recent Technology and Engineering. Vol 8. Iss.10. DOI:
10.35940/ijrte.C1081.1083S19
 M. Manida, P.K. Pandiyaraj (2015), A Study on Consumer Behaviour towards Usage of
Green Products, April 2015, DOI: 10.13140/RG.2.2.28781.13286.
 Gaurav Katoch, A Khadi and Village Industries Commission: Role, Challenges and
Opportunity Ahead, Pacific Business Review International,Volume 11 Issue 2, August 2018

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