How New Reform in Khadi Would Help in its Export Business

New code formed for Khadi Business in India will transform the export process and its outcome resulting in better figures.

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Khadi and Village Industries (KVIC) items are eco-friendly and natural, and are in great interest in the International Markets. Perceiving its capability to create exports and its eco-friendly significance, the Ministry of Commerce had concurred esteemed Export Promotion Council Status (EPCS) to KVIC in 2006, to support the export of Khadi items. 


In a long awaited move to make a reforms in the Khadi export, solely categorized from the general class of material items, the service of trade and enterprises has formed a different HS code for this signature texture of India this week. 

What is HS? 

HS Stands for Harmonized System and it is a six digit distinguishing proof code. It was created by the WCO (World Customs Organization) and custom officials use HS Code to clear every product that enters or crosses any international border. 

Also Read: Here's Why Nitin Gadkari is Pushing MSMEs

Benefits of HS Code

By falling under the HS Code, Khadi Export figures will remain under the constant check of the customs officials. The amount, quantity and quality of the signature fabric will be significantly categorized and will not be counted among the normal fabric under textile head 

Also Read: Will Khadi Modernization attract Youth Entrepreneurs and Jobs

Through HS Harmonized System, it will be advantageous for the administration to work upon its export strategies. A separate committee would be formed to look into or if in need to reform the export strategy related to the Khadi Business. 

According to the KVIC Chairman, Vinai Kumar Saxena, this decision will begin a new chapter in the Khadi export. Earlier, Khadi Business did not have its exclusive HS code. As a result, the consolidated data related to the Khadi texture used to fall under the category of a normal fabric under textile head. Now, it will be easy to keep a check on our export figures as well as maintain strategies.


Adding into this, KVIC Chairman stated that it would have remained a mirage for Khadi Business world in India if MSME Union Minister Nitin Gadkari, Union Commerce Minister Piyush Goyal and Finance Minister Nirmala Sitharaman would not have shown their interest in it.