In a year completely marred by Covid-19 pandemic, Khadi and Village Industries Commission (KVIC) has recorded its highest-ever turnover. In the year 2020-21, KVIC registered a gross annual turnover of Rs. 95,741.74crores, as compared to Rs. 88,887 crores turnover in 2019-20, thus, registering an increase of 7.71%.
KVIC’s record performance in 2020-21 assumes great significance as production activities remained suspended for more than three months during the nationwide lockdown announced on March 25 last year. During this period, all Khadi production units and sales outlets too remained closed that severely affected the production and sales. However, KVIC swiftly rose to the Hon’ble Prime Minister’s clarion calls for “Aatmanirbhar Bharat” and “Vocal for Local”. The innovative marketing ideas of Minister for Micro, Small and Medium Enterprises, Shri Nitin Gadkari further diversified KVIC’s product range, scaled up local production and paved the way for Khadi’s successive growth.
Compared to the year 2015-16, the overall production in Khadi and Village Industry sectors in 2020-21 has registered a whopping growth of 101% while the gross sales during this period increased by 128.66%.
A host of initiatives like launch of Khadi e-portal, Khadi masks, Khadi footwear, Khadi Prakritik Paint, Khadi hand sanitizers, etc., setting up of a record number of new PMEGP units, new SFURTI clusters, Government’s push to “Swadeshi” and KVIC’s historic agreements with Paramilitary forces for supply of provisions increased the turnover of village industry sector during the pandemic. Compared to the production of Rs. 65,393.40 crores in 2019-20, the production in village industry sector increased to Rs. 70,329.67 crores in 2020-21. Similarly, in FY 2020-21, the sales of village industry products stood at Rs. 92,214.03 crores as compared to Rs. 84,675.29 crores in 2019-20.
The production and sales in the Khadi sector, however, slightly declined as spinning and weaving activities across the country took a major hit during the pandemic. The overall production in the Khadi sector in 2020-21 was recorded at Rs. 1904.49 crores as compared to Rs. 2292.44 crores in 2019-20, while the overall Khadi sales stood at Rs. 3527.71 crore as compared to Rs. 4211.26 crore in the previous year.
KVIC Chairman Shri Vinai Kumar Saxena said that during the Pandemic people responded enthusiastically to the calls of “Aatmanirbhar Bharat” and “Vocal for Local”. He said that during this period, KVIC’s main focus was to create sustainable employment for artisans and unemployed youth. Faced with economic distress, a large number of youths took up self-employment and manufacturing activities under PMEGP which increased the production in the village industry sector. At the same time, the sales of Khadi and village industry products grew significantly following the Prime Minister’s appeal to buy Swadeshi products.