Indian government has reestablished the Khadi and Village Industries Commission (KVIC), the nodal agency for promoting khadi fabric in the country through a notification. Nearly 1m018 Khadi and Village Industries institutions are registered as members, while KVIC was granted deemed Export Promotion Council status in December 2006.

Five per cent of the free on board value or Rs 10 lakh, whichever is less, is provided as incentive for KVI units which undertake direct exports. In addition, KVIC encourages Khadi and Village Industries to participate in international trade fairs by subsidising 75 per cent of the airfare and 50 per cent of stall rent to augment export of their products.

In case of women entrepreneurs and institutions like ST, SC and NE States, air fare and stall rent are extended to the extent of 100 per cent subject to maximum limit of Rs 1.25 lakh each. The Ministry of Micro Small & Medium Enterprises too is implementing a number of schemes for the holistic development and promotion of khadi, according to the sources. These include; strengthening of infrastructure of existing weak Khadi Institutions and assistance for marketing infrastructure provides for renovation of Khadi sales outlets.