Khadi sector hits record Rs 1.87 lakh crore sales as digital transformation begins
27 May 2026, Mumbai
The Khadi and Village Industries Commission (KVIC) has reported a watershed moment for the Indian rural economy, with cumulative sales across the sector reaching a historic Rs 1,87,105 crore in FY25-26. This performance represents a substantial year-on-year expansion from the Rs 1.70 lakh crore recorded in FY25, highlighting a 501 per cent rise since the 2013-14 baseline. The textiles segment has been a significant contributor to this upward trajectory, with production value increasing to Rs 3,974 crore and sales reaching Rs 7,869 crore. Manoj Kumar, Chairman, KVIC notes, this growth is a testament to the robust success of ‘Vocal for Local’ initiatives, which have successfully repositioned heritage hand-spun fabrics as contemporary staples within the modern Indian wardrobe.
Modernizing the heritage marketplace
To sustain this momentum and capture the burgeoning interest of Gen Z consumers, KVIC is accelerating its digital integration. The commission is finalizing a comprehensive overhaul of its e-commerce infrastructure, moving toward a Shopify-powered platform that prioritizes a mobile-first user experience. This digital migration aims to streamline product discovery through high-resolution visuals and interactive ‘Shop the Look’ features. Beyond digital sales, the integration of artisanal expertise with fashion-forward designs - supported by partnerships with institutions like the National Institute of Fashion Technology (NIFT) - is expanding the brand’s reach. With artisan remuneration per hank rising 275 per cent over the last decade, the sector is effectively balancing its social mandate of rural livelihood support with the commercial requirements of a modern, competitive fashion retail landscape.
Khadi and Village Industries Commission (KVIC)
KVIC is a statutory body under the Ministry of MSME, mandated to plan and promote rural industrialization. It oversees a vast network of artisans and clusters producing heritage handloom, organic apparel, and village goods. With a focus on sustainable fashion and rural employment, KVIC drives the ‘Khadi India’ brand.
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