Khadi And Village Industries’ Growth Likely To Decline In FY23: Govt Data
The MSME Ministry has said that the Khadi and Village industries’ growth rate is expected to decline in Financial Year 2023 with turnover growth to be 13.8 per cent, down from 20.54 per cent in Current Financial Year ending on March 31 (FY 2022-23).
Presenting the FY23 annual report released, the ministry said Village industries are expected to churn out INR 1.25 lakh crore turnover in FY23 — 95.8 per cent of the projected turnover, growing 14.07 per cent from INR 1.10 lakh crore in FY22. In comparison, khadi units are likely to report the remaining INR 5,500 crore share of the total turnover, up 8.87 per cent from INR 5,051 crore turnover in FY22.
It also stated that the khadi and village industries are projected to achieve INR 1.31 lakh crore in turnover in the current financial year, up from INR 1.15 lakh crore achieved in FY22.
According to the report, the Khadi sector’s turnover stood at INR 3,822 crore while village industries recorded INR 92,987 crore turnover till December 2022.
“Compared to INR 59,182 crore khadi and village industries’ turnover in FY18, the FY23 turnover is expected to register 122 per cent growth. Moreover, the sector’s production is also expected to grow 14.9 per cent in FY23,” it added.
Khadi and village industries are represented by the Khadi and Village Industries Commission (KVIC) under the aegis of the MSME ministry for providing employment opportunities in rural areas.
In terms of jobs, the sector’s employment is expected to grow to 1.75 crore in FY23 from 1.67 crore in FY22 with the khadi sector employing 4.98 lakh people and village industries employing 1.70 crore, the report showed.
In order to increase the income of workers associated with khadi, KVIC had earlier this month decided to increase the wages from INR 7.50 per hank to INR 10 per hank for income generation, which would increase the monthly income of artisans by around 33 per cent and 10 per cent increase in the wages of weavers. The move will come into effect on April 1, 2023.