Since April 1, 2021 the government has replaced rebates on khadi products with the Market Development Assistance (MDA) scheme. The MDA aims to boost sales and enhance the quality of Khadi for customers. Introduced in the third quarter of the financial year 2016-17, the modified Market Development Assistance (MMDA) scheme focuses on technology upgradation, design development, modernization of sales outlets and incentives for artisans and karyakartas.
The guidelines for MMDA were revised on October 19, 2022, with varying incentives based on the type of khadi product and parties involved. Online portals by Khadi and Village Industries Commission (KVIC) ensure efficient and transparent implementation of these schemes including quarterly disbursement of MMDA.
KVIC collaborates with various government departments and bulk buyers like railways, defense and health and family welfare departments to increase the sale of khadi and village industries products. There are in total 30 varieties of Khadi items that are available online on GeM portal. The government has taken various steps to promote Khadi, including selling products through outlets, online portals, and participating in events like IITF 2022 and Lakme Fashion Week. Social media initiatives, discounts and collaborations with NIFT for design development also support the growth of Khadi products.
All the hardwork that has been put into has made a significant difference as the sales have increased, Rs 8,765.15 lakh in 2021-22 and Rs 9,202.27 lakh in 2022-23. Bhanu Pratap Singh Verma, Minister of State for Micro Small and Medium Enterprises, shared all these details in a written reply, which highlighted the government’s commitment to empower and support Khadi Sector of India.
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