Indian Khadi Industry

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INDIAN KHADI INDUSTRYGROWTH PERSPECTIVES
CHALLENGES
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Content
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What is Khadi?

• It is a traditional Indian fabric, which is
  handmade out of natural fibre like cotton or
  silk.
• It is mainly produced in India.
• It is a versatile fabric that is cool in summer
  and warm in winter because hand spinning a yarn
  makes the fabric soft and supple as it has very
  low twist.
• For India, it is a symbol of self-reliance and
  freedom.
• The best part of Khadi is its organic and zero
  carbon footprint image.

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Steps involved in production of Khadi

• It involves 8 steps
• 1. Farming Cotton balls are handpicked from
  fields
• 2. Cleaning Separation of fibres from cotton
  seeds
• 3. Carding The final traces of trash from fibre
  is removed and the final product is known as
  Slivers.
• 4. Spinning The slivers are spun into yarn on
  CHARKHA where they are thinned out and twisted at
  the same time to strengthen it
• 5. Reeling The spun yarns are then wounded into
  reels to transport it to weavers
• 6. Weaving The reels are hand woven into fabric
  by skilled artisans
• 7. Dyeing The fabric is sent to skilled laborers
  for dyeing. Majorly, organic vegetable dyes are
  used to avoid any chemicals
• 8. Finish The finished fabric is ready to be
  sold to the government to be made into garments
  by retailers and designers.

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Brief history of Khadi in India

• In India, the word Khadi conjures up images of
  Mahatma Gandhi and the Swadeshi movement he led.
  Gandhi made the Swadeshi Movement synonymous with
  Khadi.
• With Khadi, Gandhiji Boycotted foreign goods. All
  India Spinners Association was launched with the
  intention of propagation, production and the
  selling of khadi in 1925.
• Since independence, Khadi was struggling to
  maintain a balance between tradition and
  modernity, but from last 4 years or so, the Khadi
  fabric has gone a number of transformations and
  is now globally accepted.
• After yoga, Khadi has second most recollection by
  non-Indians towards India in the world.
• About 15 lakh Indians in villages depend on Khadi
  Industry either directly or indirectly for their
  livelihood.

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Khadi on International platform Recent examples

• Gavin Najah, a noted fashion designer,
  choreographed a 20-minute textile event in
  Sandton Convention Centre in Johannesburg in
  April 2018. This was aimed to project Khadi in a
  modern and trendy style.
• In March 2018, Khadi and Village Commission of
  India participated in the India Sourcing Fair
  in St Petersburg, where KVIC products won
  accolades.
• Raymond has already started selling Khadi in its
  stores abroad.
• KVIC had also approached the United Nations (UN)
  to promote Khadi in their various rehabilitation
  programs as it is one of the environment-friendly
  products and provides sustenance to millions of
  people.
• KVIC plans to open Khadi outlets to promote the
  products in global markets. The queries have been
  received from Dubai, Chicago, Mauritius and South
  Africa, under the franchisee model. 

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Khadi in Indian domestic market

• KVIC has set up a garment designing and stitching
  unit at Ghaziabad in Uttar Pradesh. In this unit,
  72 global designers will showcase their creations
  in the presence of 35 Ambassadors/High
  Commissioners in India.
• To support the movement, the All India Khadi and
  Village Industries Board was created which later
  culminated in the formation of Khadi, Village and
  Industries Commission.

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Khadi in Indian domestic market

• In India, a large number of corporate brands and
  PSUs are involved to promote the use of Khadi.
  A) Recently, Raymond purchased more than 2.5
  lakh meters of grey fabric and showcased it in
  its 150 stores across India. B) Similarly, the
  Aditya Birla Fashion and Retail Ltd (ABFRL) is
  tying up with KVIC to develop a product line
  Khadi Peter England. C) KVIC had already
  inked MoUs with Cotton Bazaar and Big Bazaar in
  January 2018. Big Bazaar has started Khadi
  Korners at their seven stores in Mumbai.
• KVIC appointed Ritu Beri as their advisor in
  March 2016 to innovate Khadi fabric into chic.
• KVIC has also signed an MoU with NIFT for better
  design development and training at different
  Khadi institutions.

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Khadi in Indian domestic market

• In the FY 2017-18, the sale of Khadi grew to Rs
  2,503 crore, 25 up from Rs 2,007 crore in FY
  2016-17.
• It is the only sector in the Indian economy to
  register a double-digit growth in the last three
  years in both production and sales.
• The average growth of production in the Khadi
  sector was only 6.24 in the decade 2004-14,
  which jumped to 26.43 in 2015-17.

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Efforts made by KVIC to skill Khadi artisans

• 4.6 lakh genuine artisans work to create Khadi
  and receive subsidy directly to their bank
  accounts.
• Another innovation is in form of Khadi Mitra on
  cards, where homemakers could sell Khadi with a
  very nominal capital investment initially.
• Khadi workers get assisted by UDAANSKILL, a
  start-up engaged in imparting digital skills to
  micro, small and medium industry (MSME) units.
• As many as 375 new Khadi institutions were
  established after 2015.

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Khadi exports from India

• Textile sector of India contributes 15 to the
  total exports of the country but Khadis
  contribution in exports is just 0.22.
• In 2016-2017, Khadi textile and garment exports
  to different countries was around Rs 3 crores (US
  400,000) that includes readymade garment
  exports of Rs 104.5 lakhs (US 120,000) and
  Khadi (woolen silk and muslin) exports of Rs
  196.97 lakhs (US 330,000).

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Growth and future targets for Khadi in India

• Khadi has now a sales target of Rs 4,000 crore
  for 2018-19 and Rs 5,000 crore for 2019-20.
• With the help of various initiatives taken up by
  KVIC, it intends to double its exports in the FY
  2018-19.

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Why Khadi is still unpopular among people in
India and abroad

• In the present form, Khadi is not acceptable for
  use as formal wear. It gets crushed easily and
  gets wrinkles quickly once wore.
• Khadi clothes shrink easily therefore one needs
  to iron it after every wash.
• Since Khadi is made of coarse fibre hence it is
  not skin friendly.
• Internationally, people require comfort, easy
  care, smell repellent and wrinkle-free clothing,
  whereas Khadi is anything but with these
  properties.
• It is expensive to use Khadi as trademark and
  also KVIC wishes to keep its exclusivity as it is
  an expensive fabric.

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