Government's FDI policy will boost khadi sales: KVIC

03 Oct '12

1 min read

Entry of foreign investors in domestic retail market following Government of India’s Foreign Direct Investment (FDI) policy would boost sales of khadi items in domestic as well as international markets, Khadi Village Industries Commission (KVIC) President Devendra Desai, has said.

Announcing the launch of khadi rebate scheme from October 2 to next March-end, he said allowing FDI in retail would lead to healthy competition, which would not only boost the country’s economy, but also khadi sales.

The KVIC is organizing several exhibition-cum-sales in foreign countries and it has already met positive response in Brazil and France.

KVIC expects khadi item exports to rise to about Rs. 2 billion in the next few years from the current exports of around Rs. 700 million per annum.

Mr. Desai hailed the Government of Gujarat’s move of announcing 10 percent rebate on khadi material produced within the state. He informed that the Saurashtra Rachnatmak Samiti has fixed a target of selling khadi products worth Rs. 60 million in Gujarat during the current year.

KVIC has joined hands with India’s prominent designing institutes like NID and NIFT to make khadi items more popular by producing innovative designer khadi apparel.

Fibre2fashion News Desk - India

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