28  Khadi and Village Industries Commission (KVIC), Technical Consultancy Organization (TCO)

Entrepreneurship in India has historically thrived at both grassroots (village-based industries) and professional levels (technical consultancy support). The Khadi and Village Industries Commission (KVIC) and Technical Consultancy Organizations (TCOs) represent two complementary institutional supports—one focusing on sustainable rural development and the other on professional guidance for entrepreneurs.

Khanka (2020) notes that KVIC has been central to promoting self-reliance in villages, while Desai (2014) emphasizes that TCOs bridge the knowledge and resource gap by offering specialized consultancy services.

28.1 Role of KVIC

Established in 1957 under the Khadi and Village Industries Commission Act, KVIC promotes khadi (hand-spun cloth) and village industries.
- Employment Generation: Provides livelihood opportunities in rural areas.
- Self-Reliance: Encourages cottage industries for decentralized development.
- Skill Development: Offers training in spinning, weaving, handicrafts, and agro-based industries.
- Marketing Support: Provides branding, certification, and retail outlets for khadi and rural products.
- Financial Assistance: Coordinates credit and subsidy schemes through PMEGP (Prime Minister’s Employment Generation Programme).
- Sustainability: Encourages eco-friendly, low-carbon industries.

Case: KVIC’s “Khadi India” brand has revitalized khadi sales, making them popular among urban consumers and global markets.

28.2 Role of TCOs (Technical Consultancy Organizations)

TCOs were established jointly by state governments and financial institutions to provide professional support for entrepreneurs.
- Project Identification: Suggesting viable business opportunities.
- Project Appraisal & Feasibility Studies: Assessing the commercial and financial viability of ventures.
- Technology Transfer: Guiding entrepreneurs in selecting and adopting appropriate technologies.
- Training & Capacity Building: Organizing EDPs (Entrepreneurship Development Programs).
- Advisory Services: Helping entrepreneurs access finance, markets, and compliance assistance.

Case: Andhra Pradesh Industrial and Technical Consultancy Organisation (APITCO) provided consultancy to MSMEs in agro-processing and tourism sectors.

28.3 Comparative Roles of KVIC and TCOs

Institution Primary Role Example
KVIC Rural employment, khadi, and village industries Khadi India, PMEGP beneficiaries
TCOs Professional consultancy, feasibility studies, technology support APITCO supporting MSMEs in Andhra Pradesh

28.4 Institutional Support Diagram

graph LR
    A["Institutional Support"] --> B["KVIC"]
    A --> C["TCOs"]

    B --> B1["Rural Employment & Self-Reliance"]
    B --> B2["Skill Development & Training"]
    B --> B3["Marketing & Financial Support"]

    C --> C1["Project Identification"]
    C --> C2["Feasibility & Appraisal Studies"]
    C --> C3["Technology Transfer & Advisory Services"]

    %% Style
    classDef dark fill:#004E64,color:#ffffff,stroke:orange,stroke-width:3px,rx:10px,ry:10px;
    class A,B,C,B1,B2,B3,C1,C2,C3 dark;

28.5 Indian Perspective

  • KVIC supports rural entrepreneurship through khadi, handicrafts, and agro-based industries, aligned with Gandhian ideals of self-reliance.
  • TCOs provide modern business consultancy services, bridging the gap between financial institutions and entrepreneurs.
  • Together, they enable balanced entrepreneurship across rural and urban contexts.

28.6 Global Perspective

  • Similar institutions exist globally:
    • Bangladesh: Grameen enterprises promoting rural industries.
    • China: Village enterprises supported by rural industrialization policies.
    • OECD nations: Consultancy firms and incubators offering structured business advisory services.

28.7 Challenges

  • KVIC: Struggles with modernization, limited youth participation, and branding beyond niche markets.
  • TCOs: Face issues of underutilization, lack of awareness among small entrepreneurs, and funding constraints.

28.8 Future Outlook

  • Digital Khadi: E-commerce platforms expanding KVIC’s reach.
  • Green Entrepreneurship: KVIC promoting eco-friendly industries.
  • Public-Private Partnerships: Strengthening TCO services through corporate collaboration.
  • Technology Integration: AI-driven consultancy tools enhancing TCO effectiveness.

28.9 Summary

  • KVIC fosters grassroots entrepreneurship, focusing on rural employment, skill development, and sustainability through khadi and village industries.
  • TCOs provide professional, technical, and advisory services, enabling modern entrepreneurs to identify opportunities, access finance, and adopt technology.

Together, KVIC and TCOs represent a dual approach—supporting traditional village-based enterprises while also facilitating modern, technology-driven entrepreneurship. Strengthening both will ensure inclusive and sustainable entrepreneurial growth.