Khadi production in India is expected to reach Rs 1,300 crores during this fiscal year, generating employment for more 19.50 lakh people. To promote the interest of rural artisans, development of 39 clusters will be taken up with an approximate cost of Rs 60 crores benefiting more than 10,000 artisans.

A sum of Rs 100 crores has been earmarked under the Scheme for Promotion of Innovation in Rural Industries and Entrepreneurship. A web based application and monitoring system will be designed and implemented. Village industries production is expected to cross Rs 45,000 crores during 2016-17, creating employment for more than 163 lakh people.

A sum of Rs 44 crores has been allotted to take coir products to the level of 5.5 lakh metric tons and create employment for more than 7.25 lakh people and exports of more than Rs 1,500 crores. A sum of Rs1,139 crores will be utilised during 2016-17 to assist 55,000 projects. This will generate employment for more than 4,25,000 people.

Khadi is produced mostly by micro and small enterprises in the country. Lack of marketing orientation and technological obsolescence are the major obstacles that prevent khadi from playing a larger role in the Indian textile arena.