Khadi Vikas Yojana: ₹80,000–₹25L KVIC Subsidies for Artisans

The Khadi Vikas Yojana is the umbrella programme through which the Khadi and Village Industries Commission (KVIC) channels support into India's Khadi sector. KVIC works under the Union Ministry of Micro, Small and Medium Enterprises, and the scheme runs across the country rather than being tied to any one state. Two kinds of applicants are covered: Khadi institutions that are already registered, and the individual artisans who spin, weave and finish Khadi fabric.

The scheme's purpose is to keep Khadi production economically viable. Instead of a single grant, it bundles several kinds of help together — a production subsidy that lowers the cost of making Khadi, an interest subsidy that makes bank borrowing cheap, money to put up worksheds where artisans actually work, capital plus working funds to revive institutions that have grown weak, and funds to renovate sales outlets so goods reach buyers.

There is an ecosystem side to it as well. Quality assurance for Khadi, participation in exhibitions, science and technology interventions, and the setting up of Centres of Excellence for Khadi all sit inside the same umbrella, so an institution can draw on more than one component over time. Depending on the component applied for, assistance ranges from roughly ₹80,000 to ₹25 lakh.

Applications are accepted on a rolling basis. There is no fixed window, so an eligible institution or artisan can apply whenever the paperwork is ready.

• Production subsidy of 35% on prime cost for cotton, wool and Polyvastra Khadi, and 20% for silk
• Bank loans at an effective 4% interest, with KVIC covering the difference
• Workshed assistance up to ₹1,20,000 for an individual artisan
• Up to ₹15 lakh to revive a weak Khadi institution
• Up to ₹25 lakh to renovate KVIC/KVIB sales outlets
• Open across India with applications accepted on a rolling basis

An applicant must be either a Khadi artisan or a Khadi institution registered with KVIC or with a Khadi and Village Industries Board (KVIB).

• Individual artisans must be between 18 and 55 years of age.
• A valid Aadhaar card or another government-issued identity document is required.
• Only one person per family can receive benefits under the scheme.
• Anyone who has already taken assistance for the same purpose under a different government scheme is not eligible.
• Preference in identification is given to applicants from SC/ST communities, women, unemployed youth and BPL families.
• Beneficiaries are typically identified and recommended by KVIC, KVIBs, NGOs, District Industries Centres (DICs), FPOs or existing Khadi institutions.

Khadi Vikas Yojana: ₹80,000–₹25L KVIC Subsidies for Artisans is open to startups at any stage. It is open to startups registered anywhere in India.

Khadi Vikas Yojana: ₹80,000–₹25L KVIC Subsidies for Artisans accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Support is delivered through several components, and an eligible institution may qualify for more than one of them.

Modified Market Development Assistance (MMDA) is a production subsidy calculated on prime cost — 35% for Cotton/Muslin, Wool and Polyvastra Khadi, and 20% for Silk Khadi. It directly reduces what it costs an institution to manufacture its goods.

Interest Subsidy Eligibility Certificate (ISEC) makes bank credit affordable: a Khadi institution pays only 4% interest on its bank loan, and KVIC bears the remaining interest. Interest cost stops being a reason to avoid borrowing for working capital.

Workshed Scheme for Khadi Artisans funds a proper place to work. An individual artisan can receive up to ₹1,20,000, or 75% of the workshed cost (90% in the North Eastern Region), whichever is lower. For group worksheds, the support is up to ₹80,000 per artisan, again capped at 75%/90% of the cost, whichever is less.

Strengthening weak Khadi institutions provides up to ₹15 lakh to an existing institution that has fallen weak, usable for both capital expenditure and working funds.

Marketing infrastructure assistance offers up to ₹25 lakh to renovate departmental sales outlets operated by KVIC or KVIBs, as well as institutional sales centres.

Beyond these, the umbrella covers Khadi quality assurance, science and technology interventions, marketing exhibitions, and the establishment of Centres of Excellence for Khadi.

Khadi Vikas Yojana: ₹80,000–₹25L KVIC Subsidies for Artisans is offered by Ministry of MSME, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

The route in is an online application followed by verification by KVIC, not a competitive pitch round.

• The artisan or institution registers on the KVIC online portal and submits the application along with supporting documents.
• A KVIC office examines the submission — the institution's registration, the artisan details, and whether the eligibility conditions are met.
• After the application clears verification and is approved, a Certificate of Registration (CoR) is generated online and can be downloaded.

Because the scheme states a preference for SC/ST applicants, women, unemployed youth and BPL families, that preference can influence screening wherever prioritisation is applied.

Before you apply to Khadi Vikas Yojana: ₹80,000–₹25L KVIC Subsidies for Artisans, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Khadi Vikas Yojana: ₹80,000–₹25L KVIC Subsidies for Artisans is best suited for startups in India seeking non-dilutive funding of ₹80,000 – ₹25L. If that describes your startup, review the eligibility criteria above before applying.