Allocation for the Khadi Gramodyog Vikas Yojana (KGVY) in budget 2025-26 was decided at 1,066 crore from ₹1,037.19 crore in budget 2024-25. This, after the budgetary estimates allocation jumped 13% in 2024-25 from ₹917 crore in 2023-24.
Union Budget Budget Estimates (In ₹ Cr) Revised Estimates (In ₹ Cr) 2025-26 1,066 -- 2024-25 1,037 866 2023-24 917 810 2022-23 749 736 Envisaged in November 2019, the scheme is an umbrella central scheme with two sub-categories, Khadi Vikas Yojana and Gramodyog Vikas Yojana. KGVY has seen a consistent rise in budgetary allocation since its first grant in the budget in 2022-23. The scheme is aimed at supporting khadi artisans in raising productivity, infrastructure, and sales while providing a major impetus in improving their livelihood.
Financial assistance including interest subsidies and loans for registered entities for their capital needs is granted under the KGVY scheme. Beneficiaries under the scheme have to be in the age group of 18-55 years. According to Ministry Of Micro, Small & Medium Enterprises data, around 5 lakh artisans derive their income from Khadi activity in rural India.
The labour-intensive sector has also seen a surge of women artisans working from their dwelling places. KGVY further anticipates institutionalising such local artisans in developing common logos and signage for improved reach of the handcrafted textile. Six major verticals have been identified under the scheme which include mineral-based industries,.
