KVIC records highest ever turnover in FY 2020-21

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 95,741.74 crore, as compared to Rs 88,887 crore 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 adopted innovative marketing ideas. It further diversified product range, scaled up local production and paved the way for khadi’s robust growth.

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, the 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 crore in 2019-20, the production in village industry sector increased to Rs 70,329.67 crore in 2020-21. Similarly, in FY 2020-21, the sales of village industry products stood at Rs 92,214.03 crore as compared to Rs. 84,675.29 crore 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 1,904.49 crore as compared to Rs 2,292.44 crore in 2019-20, while the overall khadi sales stood at Rs 3,527.71 crore as compared to Rs 4,211.26 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.

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