It is now obligatory to purchase at least 20 per cent of the minimum textile requirement from the KVIC (Khadi Village and industries Commission), handloom clusters and registered weavers.
This move aims to boost up the country’s Khadi industry.
As of now, the Central Government had set aside all the hand spun and hand woven textiles for exclusive purchase from KVIC. Rule 153 of General Financial Rules (GFR) 2017 was amended so as to put into practice, this change.
As per a recent circular from Ministry of Finance, Department of Expenditure Procurement Policy Division, handloom clusters consist of co-operative societies, self-help group federations, joint liability groups, producer companies, corporations including weavers having ‘pehchan cards’.
The amended rule states that out of all the textile items of handloom origin required by the Central Government departments, at least 20 per cent of products have to be brought exclusively from KVIC and/or handloom clusters.
According to the Union Budget, Finance Minister Nirmala Sitharaman increased the allocation for ‘khadi, village and coir industries’ to Rs. 1,525.94 crore for the current fiscal.
Bharat Tex Special Report 2026 
