What question did this study set out to answer?

To explore the transformation of khadi into a modern, viable platform for entrepreneurship and sustainable development.

January 23, 2026Open Access

Khadi Reimagined: Enterprises, Startups and India's Sustainable Future

Key Points

To explore the transformation of khadi into a modern, viable platform for entrepreneurship and sustainable development.
Analysis of khadi's historical background and current relevance in the MSME sector
Examination of institutional support from the Khadi and Village Industries Commission
Assessment of technological and market interventions to enhance productivity
Evaluation of socio-economic impacts on rural employment and livelihoods
Sales of khadi increased by 447 percent from 2013–14 to 2024–25
Overall turnover is approximately ₹1.7 lakh crore
Khadi has a high participation rate of women artisans, contributing to non-farm employment
Integration of traditional skills with modern technology has improved market access and income stability

Abstract

Khadi holds a distinctive place in India’s historical, social, and economic development. While it symbolised self-reliance during the freedom movement, the contemporary phase marks its reimagination as a modern, enterprise-driven sector within the MSME framework. This paper examines how khadi is being repositioned as a viable platform for entrepreneurship, start-up growth, rural industrialisation, and sustainable livelihoods. Particular emphasis is placed on the role of institutional support, especially initiatives undertaken by the Khadi and Village Industries Commission, in promoting micro and small enterprises, decentralised production, and inclusive economic growth. The study highlights that rising global awareness of sustainable lifestyles and ethical consumption has significantly enhanced khadi’s relevance. Its low carbon footprint, minimal water usage, and labour-intensive production processes align closely with green economy objectives, creating new market opportunities for enterprises and start-ups. Supported by strong government schemes and wage reforms, the sector has recorded notable expansion, with sales increasing by 447 per cent between 2013–14 and 2024–25 and overall turnover reaching approximately ₹1.7 lakh crore. The paper further analyses the evolving entrepreneurial ecosystem of khadi, where traditional skills are combined with modern design, technology, and business practices. Technological interventions such as improved and solar-powered charkhas, along with digital platforms and institutional marketing networks, have enhanced productivity, market access, and income stability for artisans. From an employment perspective, khadi remains one of the most labour-intensive sectors in rural India, with high participation of women artisans, contributing to non-farm employment generation and reduced migration. The study concludes that khadi has the potential to function as a sustainable start-up ecosystem that integrates heritage-based production with contemporary enterprise models, thereby advancing inclusive entrepreneurship and employment-led growth in India. Keywords: Khadi, Start-ups, Innovation, socio-economic & Sustainable Development, Rural Employment, MSMEs

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