One of the latest initiatives for rural growth launched by the Indian government is the Gramodyog Vikas Yojana (GVY), which was initiated under the Khadi and Village Industries Commission (KVIC). This scheme was launched with an aim to foster the development of village industries in India, and as a part of this initiative, on one recent occasion, the Lieutenant Governor of Delhi distributed Honeybee-Boxes and Toolkits to 130 recipients.
Understanding GVY
The Gramodyog Vikas Yojana, launched in March 2020, is a component of the Khadi Gramodyog Vikas Yojana, a Central Sector Scheme. The aim of GVY is to encourage the development of village industries via the establishment of common facilities, introducing technological modernization, and arranging training programmes.
The industries included in the GVY are diverse, encompassing sectors such as agro-based and food processing, mineral-based industry, wellness and cosmetics, handmade paper, leather and plastic sector, and even rural engineering and new technology.
GVY’s major components include: R&D and Product Innovation, Capacity Building, and Marketing & Publicity. With these, GVY helps village institutions provide market support and build the capacity of staff and artisans.
About KVIC
Known as the Khadi and Village Industries Commission, KVIC is a statutory body functioning under the Ministry of MSMEs. Established under the Khadi and Village Industries Commission Act of 1956, it is responsible for planning, promoting, organising and implementing programmes for developing Khadi and other village industries in rural areas, in coordination with other agencies working on rural development.
Village Industries in Indian Economy: Their Significance
Village industries play a crucial role in India’s economy. As they are labour-intensive, they provide ample employment opportunities in rural areas, reducing unemployment and underemployment. In addition, they absorb a substantial workforce, which can include skilled, semi-skilled, and unskilled workers.
More so, village industries contribute to the overall development of rural areas by establishing small-scale enterprises in these regions, creating local economic activities, reducing migration to urban areas, and preventing overpopulation in cities.
They also play a significant role in poverty alleviation by generating income for rural communities, providing livelihood options for people who have limited access to formal employment opportunities, and promoting entrepreneurship and self-employment, thereby empowering individuals to improve their socio-economic conditions.
What’s more, village industries typically utilize local resources and raw materials found in rural areas, promoting sustainable development and reducing external resource dependency.
Export Potential and Other Initiatives
Many village industries produce traditional crafts, handlooms, handicrafts, and other unique products that are in high demand domestically and internationally. The export of these products generates foreign exchange earnings and enhances India’s global trade competitiveness.
Apart from GVY, other initiatives focused on developing village industries in India include the Deen Dayal Upadhayay Grameen Kaushalya Yojana, Pradhan Mantri Kaushal Vikas Yojana, and National Rural Livelihood Mission.
These schemes were launched not only to bring about rural growth and development but also to enhance the various sectors of the economy and promote sustainability. They contribute significantly towards achieving rural-urban integration, which is an important factor in sustaining smart cities in India.
