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INDIAN KHADI INDUSTRY
GROWTH PERSPECTIVES & CHALLENGES
ContentContent
What is Khadi?What is Khadi?
• It is a traditional Indian fabric, which is
handmade out of natural fibre like cotton or
silk.
• It is mainly produced in India.
• It is a versatile fabric that is cool in summer
and warm in winter because hand spinning a
yarn makes the fabric soft and supple as it
has very low twist.
• For India, it is a symbol of self-reliance and
freedom.
• The best part of Khadi is its organic and zero
carbon footprint image.
Steps involved in production of KhadiSteps involved in production of Khadi
It involves 8 steps:
1. Farming: Cotton balls are handpicked from fields
2. Cleaning: Separation of fibres from cotton seeds
3. Carding: The final traces of trash from fibre is removed and
the final product is known as Slivers.
4. Spinning: The slivers are spun into yarn on CHARKHA where
they are thinned out and twisted at the same time to
strengthen it
5. Reeling: The spun yarns are then wounded into reels to
transport it to weavers
6. Weaving: The reels are hand woven into fabric by skilled
artisans
7. Dyeing: The fabric is sent to skilled laborers for dyeing.
Majorly, organic vegetable dyes are used to avoid any chemicals
8. Finish: The finished fabric is ready to be sold to the
government to be made into garments by retailers and
designers.
Brief history of Khadi in IndiaBrief history of Khadi in India
• In India, the word “Khadi” conjures up images of Mahatma Gandhi and the
Swadeshi movement he led. Gandhi made the Swadeshi Movement
synonymous with Khadi.
• With Khadi, Gandhiji Boycotted foreign goods. All India Spinners Association
was launched with the intention of propagation, production and the selling of
khadi in 1925.
• Since independence, Khadi was struggling to maintain a balance between
tradition and modernity, but from last 4 years or so, the Khadi fabric has gone
a number of transformations and is now globally accepted.
• After yoga, Khadi has second most recollection by non-Indians towards India in
the world.
• About 15 lakh Indians in villages depend on Khadi Industry either directly or
indirectly for their livelihood.
Khadi on International platform:Khadi on International platform:
Recent examplesRecent examples
• Gavin Najah, a noted fashion designer, choreographed a 20-minute textile event in Sandton Convention
Centre in Johannesburg in April 2018. This was aimed to project Khadi in a modern and trendy style.
• In March 2018, Khadi and Village Commission of India participated in the ‘India Sourcing Fair’ in St
Petersburg, where KVIC products won accolades.
• Raymond has already started selling Khadi in its stores abroad.
• KVIC had also approached the United Nations (UN) to promote Khadi in their various rehabilitation programs
as it is one of the environment-friendly products and provides sustenance to millions of people.
• KVIC plans to open Khadi outlets to promote the products in global markets. The queries have been received
from Dubai, Chicago, Mauritius and South Africa, under the franchisee model.
Khadi in Indian domestic market:Khadi in Indian domestic market:
• KVIC has set up a garment designing and stitching
unit at Ghaziabad in Uttar Pradesh. In this unit,
72 global designers will showcase their creations
in the presence of 35 Ambassadors/High
Commissioners in India.
• To support the movement, the All India Khadi
and Village Industries Board was created which
later culminated in the formation of Khadi,
Village and Industries Commission.
Khadi in Indian domestic marketKhadi in Indian domestic market
• In India, a large number of corporate brands and PSUs are
involved to promote the use of Khadi.
A) Recently, Raymond purchased more than 2.5 lakh meters of
grey fabric and showcased it in its 150 stores across India.
B) Similarly, the Aditya Birla Fashion and Retail Ltd (ABFRL) is
tying up with KVIC to develop a product line ‘Khadi Peter
England’.
C) KVIC had already inked MoUs with Cotton Bazaar and Big
Bazaar in January 2018. Big Bazaar has started Khadi Korners
at their seven stores in Mumbai.
• KVIC appointed Ritu Beri as their advisor in March 2016 to
innovate Khadi fabric into chic.
• KVIC has also signed an MoU with NIFT for better design
development and training at different Khadi institutions.
Khadi in Indian domestic marketKhadi in Indian domestic market
• In the FY 2017-18, the sale of Khadi grew to Rs
2,503 crore, 25% up from Rs 2,007 crore in FY
2016-17.
• It is the only sector in the Indian economy to
register a double-digit growth in the last three
years in both production and sales.
• The average growth of production in the Khadi
sector was only 6.24% in the decade 2004-14,
which jumped to 26.43% in 2015-17.
Efforts made by KVIC to skill KhadiEfforts made by KVIC to skill Khadi
artisansartisans
• 4.6 lakh genuine artisans work to create Khadi
and receive subsidy directly to their bank
accounts.
• Another innovation is in form of ‘Khadi Mitra’ on
cards, where homemakers could sell Khadi with
a very nominal capital investment initially.
• Khadi workers get assisted by UDAANSKILL, a
start-up engaged in imparting digital skills to
micro, small and medium industry (MSME)
units.
• As many as 375 new Khadi institutions were
established after 2015.
Khadi exports from IndiaKhadi exports from India
• Textile sector of India contributes 15% to the
total exports of the country but Khadi’s
contribution in exports is just 0.22%.
• In 2016-2017, Khadi textile and garment
exports to different countries was around Rs 3
crores (US $ 400,000) that includes readymade
garment exports of Rs 104.5 lakhs (US $
120,000) and Khadi (woolen silk and muslin)
exports of Rs 196.97 lakhs (US $ 330,000).
Growth and future targets for Khadi inGrowth and future targets for Khadi in
IndiaIndia
• Khadi has now a sales target
of Rs 4,000 crore for 2018-19
and Rs 5,000 crore for 2019-20.
• With the help of various
initiatives taken up by KVIC, it
intends to double its exports in
the FY 2018-19.
Why Khadi is still unpopular among people inWhy Khadi is still unpopular among people in
India and abroadIndia and abroad
• In the present form, Khadi is not acceptable for
use as formal wear. It gets crushed easily and gets
wrinkles quickly once wore.
• Khadi clothes shrink easily therefore one needs to
iron it after every wash.
• Since Khadi is made of coarse fibre hence it is not
skin friendly.
• Internationally, people require comfort, easy care,
smell repellent and wrinkle-free clothing, whereas
Khadi is anything but with these properties.
• It is expensive to use ‘Khadi’ as trademark and also
KVIC wishes to keep its exclusivity as it is an
expensive fabric.
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Indian Khadi Industry

  • 1. INDIAN KHADI INDUSTRY GROWTH PERSPECTIVES & CHALLENGES
  • 3. What is Khadi?What is Khadi? • It is a traditional Indian fabric, which is handmade out of natural fibre like cotton or silk. • It is mainly produced in India. • It is a versatile fabric that is cool in summer and warm in winter because hand spinning a yarn makes the fabric soft and supple as it has very low twist. • For India, it is a symbol of self-reliance and freedom. • The best part of Khadi is its organic and zero carbon footprint image.
  • 4. Steps involved in production of KhadiSteps involved in production of Khadi It involves 8 steps: 1. Farming: Cotton balls are handpicked from fields 2. Cleaning: Separation of fibres from cotton seeds 3. Carding: The final traces of trash from fibre is removed and the final product is known as Slivers. 4. Spinning: The slivers are spun into yarn on CHARKHA where they are thinned out and twisted at the same time to strengthen it 5. Reeling: The spun yarns are then wounded into reels to transport it to weavers 6. Weaving: The reels are hand woven into fabric by skilled artisans 7. Dyeing: The fabric is sent to skilled laborers for dyeing. Majorly, organic vegetable dyes are used to avoid any chemicals 8. Finish: The finished fabric is ready to be sold to the government to be made into garments by retailers and designers.
  • 5. Brief history of Khadi in IndiaBrief history of Khadi in India • In India, the word “Khadi” conjures up images of Mahatma Gandhi and the Swadeshi movement he led. Gandhi made the Swadeshi Movement synonymous with Khadi. • With Khadi, Gandhiji Boycotted foreign goods. All India Spinners Association was launched with the intention of propagation, production and the selling of khadi in 1925. • Since independence, Khadi was struggling to maintain a balance between tradition and modernity, but from last 4 years or so, the Khadi fabric has gone a number of transformations and is now globally accepted. • After yoga, Khadi has second most recollection by non-Indians towards India in the world. • About 15 lakh Indians in villages depend on Khadi Industry either directly or indirectly for their livelihood.
  • 6. Khadi on International platform:Khadi on International platform: Recent examplesRecent examples • Gavin Najah, a noted fashion designer, choreographed a 20-minute textile event in Sandton Convention Centre in Johannesburg in April 2018. This was aimed to project Khadi in a modern and trendy style. • In March 2018, Khadi and Village Commission of India participated in the ‘India Sourcing Fair’ in St Petersburg, where KVIC products won accolades. • Raymond has already started selling Khadi in its stores abroad. • KVIC had also approached the United Nations (UN) to promote Khadi in their various rehabilitation programs as it is one of the environment-friendly products and provides sustenance to millions of people. • KVIC plans to open Khadi outlets to promote the products in global markets. The queries have been received from Dubai, Chicago, Mauritius and South Africa, under the franchisee model.
  • 7. Khadi in Indian domestic market:Khadi in Indian domestic market: • KVIC has set up a garment designing and stitching unit at Ghaziabad in Uttar Pradesh. In this unit, 72 global designers will showcase their creations in the presence of 35 Ambassadors/High Commissioners in India. • To support the movement, the All India Khadi and Village Industries Board was created which later culminated in the formation of Khadi, Village and Industries Commission.
  • 8. Khadi in Indian domestic marketKhadi in Indian domestic market • In India, a large number of corporate brands and PSUs are involved to promote the use of Khadi. A) Recently, Raymond purchased more than 2.5 lakh meters of grey fabric and showcased it in its 150 stores across India. B) Similarly, the Aditya Birla Fashion and Retail Ltd (ABFRL) is tying up with KVIC to develop a product line ‘Khadi Peter England’. C) KVIC had already inked MoUs with Cotton Bazaar and Big Bazaar in January 2018. Big Bazaar has started Khadi Korners at their seven stores in Mumbai. • KVIC appointed Ritu Beri as their advisor in March 2016 to innovate Khadi fabric into chic. • KVIC has also signed an MoU with NIFT for better design development and training at different Khadi institutions.
  • 9. Khadi in Indian domestic marketKhadi in Indian domestic market • In the FY 2017-18, the sale of Khadi grew to Rs 2,503 crore, 25% up from Rs 2,007 crore in FY 2016-17. • It is the only sector in the Indian economy to register a double-digit growth in the last three years in both production and sales. • The average growth of production in the Khadi sector was only 6.24% in the decade 2004-14, which jumped to 26.43% in 2015-17.
  • 10. Efforts made by KVIC to skill KhadiEfforts made by KVIC to skill Khadi artisansartisans • 4.6 lakh genuine artisans work to create Khadi and receive subsidy directly to their bank accounts. • Another innovation is in form of ‘Khadi Mitra’ on cards, where homemakers could sell Khadi with a very nominal capital investment initially. • Khadi workers get assisted by UDAANSKILL, a start-up engaged in imparting digital skills to micro, small and medium industry (MSME) units. • As many as 375 new Khadi institutions were established after 2015.
  • 11. Khadi exports from IndiaKhadi exports from India • Textile sector of India contributes 15% to the total exports of the country but Khadi’s contribution in exports is just 0.22%. • In 2016-2017, Khadi textile and garment exports to different countries was around Rs 3 crores (US $ 400,000) that includes readymade garment exports of Rs 104.5 lakhs (US $ 120,000) and Khadi (woolen silk and muslin) exports of Rs 196.97 lakhs (US $ 330,000).
  • 12. Growth and future targets for Khadi inGrowth and future targets for Khadi in IndiaIndia • Khadi has now a sales target of Rs 4,000 crore for 2018-19 and Rs 5,000 crore for 2019-20. • With the help of various initiatives taken up by KVIC, it intends to double its exports in the FY 2018-19.
  • 13. Why Khadi is still unpopular among people inWhy Khadi is still unpopular among people in India and abroadIndia and abroad • In the present form, Khadi is not acceptable for use as formal wear. It gets crushed easily and gets wrinkles quickly once wore. • Khadi clothes shrink easily therefore one needs to iron it after every wash. • Since Khadi is made of coarse fibre hence it is not skin friendly. • Internationally, people require comfort, easy care, smell repellent and wrinkle-free clothing, whereas Khadi is anything but with these properties. • It is expensive to use ‘Khadi’ as trademark and also KVIC wishes to keep its exclusivity as it is an expensive fabric.
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