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Shaaransh Sharma

October 17, 2024

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What is KVIC: Full Form, Functions, and Objectives

A crucial element in India's social and economic landscape is its Khadi & Village Industries Commission (KVIC), which fosters sustainable rural development, job creation, and traditional industries. KVIC is a statutory body of the Government of India under the Ministry of Micro Small & Medium Enterprises. For that we need to know what KVIC is, its full form along with all the functions and objectives it serves and how this organisation contributed to entrepreneurship, employment generation, and rural upliftment.

KVIC Full Form: What is KVIC?

KVIC stands for Khadi and Village Industries Commission It functions as a statutory body under the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India was established in 1956. The KVIC came into existence with the vision of empowering the rural economy by way of promoting Khadi and village industries that would help in creating employment opportunities, encouraging entrepreneurship and preserving cultural heritage.

A fabric that epitomises the Indian freedom struggle, Khadi is an enduring symbol of self-reliance and sustainability. In contrast, village industries refer to a variety of small businesses in the countryside that provide employment and thereby enhance rural economic viability. Khadi and village industries have also played an important role in the availability of employment opportunities in rural India, having shown significant results together.

Functions of Khadi and Village Industries Commission (KVIC)

The functions of KVIC can be broadly categorized into the following key areas:

1. Promoting Khadi and Village Industries

The KVIC has been constituted with objectives to plan, promote and organise an integrated development in Khadi as well as other village industries. This philosophy has touched every aspect of Indian life, from the Gandhian call to wear Khadi and help with all that we can in supporting rural artisans and small enterprises to grow their businesses. KVIC has been organising exhibitions, fairs and promotional events to showcase these products in the mainstream market to increase their outreach.

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2. Job Creation in Rural Areas

The KVIC (Khadi and Village Industries Commission) is a major employment provider in rural areas. KVIC promotes the products of Khadi and village industries from across rural artisans, weavers, and small-scale entrepreneurs to ensure their livelihood. Its mission is to create employment in areas where there are fewer job prospects, thereby preventing rural exodus and allowing for a more balanced regional spread of the population.

3. Skill Development and Training

KVIC has also been focused on increasing the skills among artisans and rural entrepreneurs. They are trained in weaving, pottery making, bee-keeping and more such traditional crafts to enhance the key qualities of their products as well as help increase productivity. The training programs are structured so that one becomes unrestrained and contributes to the growth of the rural economy.

4. Providing Financial Assistance

KVIC offers financial assistance in the shape of either Grant or loan for promotion and development of Khadi industries. The commission works with banks and financial institutions to make sure that artisans can get loans if they need funds to set up or expand their businesses. It is this function that helps rural entrepreneurs grow their businesses and economic contributions.

5. Ensuring Product Quality

It offers guidelines and disciplines for quality control of the products at various levels, to equal them with a set standard of product norms both in domestic as well as international markets. This quality assurance is of vital importance for sustaining the credibility and marketability of the Khadi & Village Industries products.

6. Marketing and Sales Promotion

Apart from conducting exhibitions and fairs to promote Khadi and village industry products, KVIC also provides sales marketing support for these items including online platforms. A well-connected marketing network has been started by the commission which helps rural producers sell their product in urban areas and also export weakness. This feature is bringing rural producers closer to global consumers.

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Objectives of Khadi and Village Industries Commission

The objectives of KVIC are in alignment with its functions but focus specifically on the socio-economic development of rural areas. Some of the key objectives are:

1. Promote Self-Reliance in Rural India

In particular, the KVIC's primary goal is to foster self-reliance in rural India by promoting Khadi and village industries. The commission promotes the usage of local resources and traditional skills to make products that support local economies. This emphasis on self-sufficiency creates durable communities that serve to mitigate the burden placed upon urban centres for jobs and economic growth.

2. Employment Generation

KVIC is the statutory body for the promotion and development of khadi and industries in rural areas. KVIC has been promoting Khadi and village industries which offer job opportunities to the artisans, weavers, and rural youth in making them economically self-reliant. The commission plays a vital role in poverty alleviation and rural development by promoting employment generation schemes.

3. Preserve Traditional Crafts and Industries

There is a long history of crafts and industries in India with so many passed generations after the next. KVIC is responsible for safeguarding these traditions and promoting the production, and rendering of traditional goods namely Khadi, pottery, and different fabrics engaged in activities in-village industries. This helps to sustain cultural heritage and support the economy of rural areas.

4. Reduce Rural-Urban Migration

The main objective of KVIC is to create sustainable employment opportunities in rural areas and prevent migration towards urban centres. Responding to an appeal from Prime Minister Narendra Modi, KVIC has been in a rapid expansion mode since FY2016 and this has helped create jobs in rural areas as well as adds strength for curbing urbanisation.

5. Empowerment of Rural Women

KVIC keeps a major focus on empowering women in rural areas. A significant percentage of the jobs created through Khadi and village industries are appropriate for women, who play a dominant role in many centric traditional hand-spinning processes. The commission reaches out to women entrepreneurs with training and financial grant assistance for them into self-sustaining business activities as a means of boosting the economic well-being and living standard in disadvantaged communities.

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KVIC in Entrepreneurship Development

KVIC has been instrumental in supporting entrepreneurship right from scratch ensuring the economic independence of rural India. KVIC promotes rural entrepreneurship in India by facilitating the availability of infrastructure, skill training and financial assistance to individuals. helping many rural entrepreneurs create and scale their businesses.

Some of how KVIC promotes entrepreneurship include:

1. PMEGP (Prime Minister’s Employment Generation Programme)

PMEGP is the credit-linked scheme under which KVIC offers financial assistance to those who wish to start their business. It aims at promoting entrepreneurship and providing employment in rural areas through the setting up of micro-units.

2. Infrastructure Development

KVIC helps in establishing production units and makes available small enterprise tools, technology, and raw materials to run these industries. Infrastructure plays a vital role in the success of rural entrepreneurs because this helps them to expand their operations and compete with larger markets.

3. Innovation and Technology Support

KVIC not only provides innovations like modernization of village industries helping young entrepreneurs to include state-of-art technology with their traditional crafts but also improves sectoral promotional activities as well. In this way, the products are not only of high quality but also in demand in today's market. Targeting innovation assistance by KVIC helps entrepreneurs to stay competitive in the domestic as well as international markets.

Frequently Asked Questions (FAQs)

1. What is the full form of KVIC?

KVIC- The Khadi and Village Industries Commission is a statutory body formed by the Government of India to promote the development & implementation of khadi industries.

2. What are the main functions of KVIC?

KVIC has spread its operations to various sectors and created lakhs of employment in India.KVIC stands for promoting Khadi Gandhi envisaged a vision to make villages self-sufficient, so as the result, Khadi became the main tool by which this could be achieved.

3. How does KVIC contribute to rural employment?

KVIC also helps create jobs in rural areas by supporting traditional crafts and village industries, training for skill development like beekeeping etc., financial assistance to artisans or those involved with khadi as well as promoting entrepreneurship.

4. What is the role of KVIC in entrepreneurship development?

KVIC schemes like PMEGP provide monetary assistance, training and infrastructure besides promoting rural entrepreneurship as a means of offering individuals to set up their own businesses.

5. How does KVIC empower rural women?

The KVIC creates opportunities for women farmers and unemployed rural females, including SCs and STs, to make them self-reliant as part of its "Reaching the Unreached" initiative under Aatmanirbhar Bharat's post-COVID Agriculture Vision 2025. Through Khadi and Village Industries, the program provides jobs, training schemes, financial support via margin money working capital loans at concessional rates, and necessary tools and equipment.

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