Study Material | Test Series
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
prelims Test Series 2019
बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. KVIC vs FabIndia on Khadi: Discuss the legal fight between Khadi India and FabIndia on the issue of Khadi.
Feb 15, 2017 Related to : GS Paper-3

Ans :


Recently the Khadi and Village Industries Commission (KVIC) threatened legal action against ethnic wear retailer Fabindia for selling its cotton garments as Khadi products without proper approvals from the Commission. KVIC  is the nodal Agency for promotion of Khadi products. 


  • According to KVIC, Fabindia Overseas Pvt Ltd, a chain of ethnic wear retail outlets, is selling its ready-made cotton garments as Khadi products without approvals.
  • KVIC has accused Fabindia for allegedly using unfair trade practice by using and selling its cotton products unauthorisedly under its registered brand name ‘Khadi’.


  • In 2015, the Commission had asked the retailer to stop advertising and selling products in the name of Khadi. 
  • The KVIC’s in its legal notice to Fabindia Overseas said the retailer was continuing to sell its garments in the name and style of Khadi despite earlier warnings by KVIC and assurances by Fabindia that it will not do so. 
  • According to KVIC, the sale of fabric/garments by unauthorisedly using the name of ‘Khadi’ without obtaining Khadi mark registration from KVIC is in the contravention of the provisions of the Khadi Mark regulation and as such the same is unlawful.
  • But many observers, there is no unanimity about definition khadi. By definition of Khadi is handspun, handwoven fabric. But many observers raises questions about the authenticity of what’s paraded as Khadi is most of Khadi sold by KVIC institutions is from semi-mechanised Ambar Charkhas. 
  • Desi charkhas have been forsaken because they are slow in production. So most of the khadi prepared by Ambar Charkha Khadi is being sold as Khadi. In reality there are very few Khadi centres that still make handspun, handwoven Khadi.
  • Many feel that KVIC is in the name of protection of rural artisans unnecessarily restricting other players entering into the market. The khadi sold by KVIC is also not khadi, hence it should be brought out of prerogative KVIC. 


In a modern world most of the items are prepared by using machineries, even KVIC prepares khadi using semi-mechanised Ambar Charkhas. The recent notice by KVIC against fabIndia is quite regressive step and it discourages the promotion of khadi. Instead, KVIC should promote khadi products by encouraging others in joining hands with them.

Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.