KVIC reports record high turnover of Rs95,742 cr in FY'21 amidst pandemic
18 June 2021
Khadi and Village Industries Commission (KVIC) has recorded its highest-ever gross annual turnover of Rs95,741.74 crore in the financial year 2020-21, a year completely marred by the Wuhan virus-led pandemic, compared with Rs88,887 crore in 2019-20, an increase of 7.71 per cent.
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 25 March last year. During this period, all Khadi production units and sales outlets too remained closed that severely affected the production and sales. KVIC swiftly rose to the prime minister’s clarion calls for “Aatmanirbhar Bharat” and “Vocal for Local”. The innovative marketing ideas of minister for micro, small and medium enterprises, Nitin Gadkari further diversified KVIC’s product range, scaled up local production and paved the way for Khadi’s successive growth.
Compared to the year 2015-16, the overall production in Khadi and Village Industry sectors in 2020-21 registered a whopping 101 per cent growth, while gross sales during the period increased by 128.66 per cent.
A host of initiatives like launch of Khadi e-portal, Khadi masks, Khadi footwear, Khadi Prakritik Paint, Khadi hand sanitisers, etc, setting up of a record number of new PMEGP units, new SFURTI clusters, 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 Rs65,393.40 crore in 2019-20, production in the village industry sector increased to Rs70,329.67 crore in FY’21. Similarly, in FY’21, the sales of village industry products stood at Rs92,214.03 crore compared to Rs84,675.29 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 Rs1,904.49 crore as compared to Rs2,292.44 crore in 2019-20, while the overall Khadi sales stood at Rs3,527.71 crore compared to Rs4,211.26 crore in the previous year.
KVIC chairman 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, sales of Khadi and village industry products grew significantly following the prime minister’s appeal to buy Swadeshi products.