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Gramodyog Vikas Yojana and Village Industries

  • 08 Jul 2023
  • 5 min read

For Prelims: Gramodyog Vikas Yojana (GVY), Khadi and Village Industries Commission (KVIC), Khadi Vikas Yojana (KVY)

For Mains: Fostering Rural Growth, Initiatives for Development of Rural Industries, Significance of Village industries in Indian Economy

Why in News?

What is Gramodyog Vikas Yojana (GVY)?

  • About:
    • It was launched in March 2020.
    • It is one of the two components of the Khadi Gramodyog Vikas Yojana which is a Central Sector Scheme (CSS).
      • The other component of Khadi Gramodyog Vikas Yojana is the Khadi Vikas Yojana (KVY) which includes two new components such as Rozgar Yukt Gaon, Design House (DH)
  • Aim:
    • GVY aims to promote and develop the village industries through common facilities, technological modernization, training etc.
  • Included Activities:
    • Agro-Based & Food Processing Industry (ABFPI)
    • Mineral-Based Industry (MBI)
    • Wellness & Cosmetics Industry (WCI)
    • Handmade Paper, Leather & Plastic Industry (HPLPI)
    • Rural Engineering & New Technology Industry (RENTI)
    • Service Industry
  • Components:
    • R &D and Product Innovation: R&D support is given to institutions that intend to carry out product development, new innovations, design development, product diversification processes etc.
    • Capacity Building: The existing MDTCs (Master Development Training Centers) and institutions of excellence address the capacity building of staff and artisans as part of the Human Resource Development and Skill Training components.
    • Marketing & Publicity: The village institutions provide market support by way of preparation of a product catalogue, industry directory, market research, new marketing techniques, buyer-seller meetings, arranging exhibitions etc.

What is KVIC?

  • KVIC is a statutory body established under the Khadi and Village Industries Commission Act, 1956.
  • The KVIC is charged with the planning, promotion, organisation and implementation of programmes for the development of Khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.
  • It functions under the Ministry of MSMEs.

What is the Significance of Village Industries in Indian Economy?

  • Employment Generation: Village industries are labor-intensive, providing ample employment opportunities in rural areas. They contribute to reducing unemployment and underemployment, particularly among the rural population.
    • These industries absorb a substantial workforce, including skilled, semi-skilled, and unskilled workers.
  • Rural Development: Village industries contribute to the overall development of rural areas. By establishing small-scale enterprises in villages, they help in creating local economic activities, reducing migration to urban areas, and preventing the concentration of population in cities.
  • Poverty Alleviation: Village industries contribute to poverty alleviation by generating income for rural communities. They provide livelihood options for people who have limited access to formal employment opportunities, particularly in agriculture.
    • By promoting entrepreneurship and self-employment, these industries empower individuals to improve their socio-economic conditions.
  • Utilisation of Local Resources: Village industries typically utilize local resources and raw materials available in rural areas. This helps in promoting sustainable development and reducing dependence on external resources.
    • It encourages the utilisation of locally available skills, traditional knowledge, and natural materials, thus preserving local heritage and culture.
  • Export Potential: Many village industries produce traditional crafts, handlooms, handicrafts, and other unique products that have high demand in domestic as well as international markets.
    • The export of these products generates foreign exchange earnings and enhances the country's global trade competitiveness.

What are the Other Initiatives for Development of Village Industries?

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. Smart cities in India cannot sustain without smart villages. Discuss this statement in the backdrop of rural-urban integration. (2015)

Source: PIB

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