Govt to promote KVIC to compete with Chinese imports

The government today said it intends to strengthen Khadi and Village Industries Commission (KVIC) by injecting new technologies through collaboration with industrial chambers to compete with cheap Chinese goods.     

For this, an agreement was signed between the industry body CII and Khadi and Village Industries Commission (KVIC), the apex body of small rural enterprises, to inject technology, brand building among the small enterprises.     

"Our industries are unable to compete with cheap Chinese products so KVIC will have to play a key role in bringing down the cost of production and improving quality of products and packaging," Minister of Small Scale Industries and Agro and Rural Industries Mahavir Prasad said after the signing of agreement.     

He said India has been flooded with cheap Chiense products, including watches, toys and bicycles.     

With an annual turnover of over Rs 13,000 crore, the KVIC is implementing many schemes for promotion of rural industries.     

Under the agreement, the CII would provide expertise to rural entrepreneurs in imparting training, technology apart from networking with corporate to facilitate market and backward linkages.     

Another agreement was also signed on this occasion between the KVIC and Ministry of Panchayati Raj for implementing the rural business hub programme of the ministry.     

A KVIC official said that the institution is expected to receive $150 million from the Asian Development Bank (ADB) to revitalise Khadi institutions and start new societies at an estimated cost of Rs 3,400 crore.     

The Commission has set a target of doubling the exports this fiscal to Rs 1,000 crore, he added.