Real planning consists in the best utilisation of the whole

man-power of India and the distribution of the raw products of

India in her numerous villages instead of sending them outside and ,

re-buying finished articles a t fabulous prices.

Harijan, 23.3.1.947, p .79.

CHAPTER - I

VILLAGE INDUSTRIES - A HISTORICAL REVIEW

1.1 Introduction

1.2 Definition of Village Industry

1.3 Evolution of Village Industries in India

1.3.1 Pre-British Period

1.3.2 British Period

1.3.3 Post Independent Ferlod

1.4 Khadi and Village Industries in the Five Year Plans - An Overall View.

CHAPTER I

VILLAGE I N D U S T R I E - A HISTORICAL REVIEW

1.1. Introduction

India is predominantly a country of vi l lages . The majority

of her population reside in vil lages. Agriculture and allied

activit ies constitute their major occupation. However the

replacement of agriculture and craftsman production by the

superimposed colonial mode of production destroyed the occupational

structure of India . The destruction of agr icul ture and domestic

industries is the root cause of the socio-economic c r i s i s confronting

the nation. The number of unemployed is increasing every year.

With a view to reduce the problem of unemployment, to eradicate

poverty and to improve the living s tandard of people, the planners

have implemented various strategies through Five Year Plans.

However these programmes do not solve the r e a l problem of India ,

i.e., m a s s poverty. Because the s t ra tegies so f a r implemented a r e

development oriented ra ther than human centered, human welfare i s

of least concern. I n t h i s regard the development strategy a s

visualised by the Father of the Eiation seems t o be t h e need of the

hour.

Mahatma Gandhi wrote ,"there is no doubt i n my mind that

i n a country like ours, teeming with millions of unemployed,

something is needed to keep their hands and feet engaged inorder

t h a t they may earn a n honest l iving. It is for them tha t khadi

and cottage industries a r e needed".' I n a county l ike India where

capi ta l is scarce and labour is abundant , the strongest argument

along the l ines of employment can be put forward through village

industries. "In view of the meagreness of capi ta l resources, there

is no possibility i n the short run, for creating much employment

through the factory industries. . . . Now consider the household or

cottage industries. They require very l i t t l e capital". 2

I n India , the cause of vil lage industr ies was initiated by - Mahatma Gandhi. To him village industry is a way of l i f e rather

:.Ian a means of l i fe . "The idea behind vi l lage industr ies scheme

is t h a t we should look to the vil lages for t h e supply of our daily

need^".^ He realised that :

vi l lage economy cannot be complete without the essent ia l vil lage industries, such as hand-grinding, hand-pounding, soap making, paper making, match making, tanning, oil pressing etc . .. Given the demand, there is no doubt t h a t most of our wants can be supplied from our vil lages. When we have become vil lage minded, we w i l l not want imitations of the West or machine made products but we w i l l

1. E!.K. Gandhi. Harijan, 2.1.1937.

2. F .C. Mahalonobis, quoted by Gunnar Myrdal, Asian Drama. Kalyani Publications, New Delhi, p .1290.

3. M . K . Gandhi, Harijan, 23.11.1937.

develop a t rue national tas te i n keeping with the vision of a new India i n which pauperism,

starvation and idleness w i l l be unknown . 4

1.2. Definition of Village Industry

Zince the present study is on the problems and prospects of

vi l lage industries i n Kerala, it is necessary to discuss the

conceptual definitions of the terms ' small scale industries ' ,

' cottage and village industries ' and ' t iny sector ' .

"How is a s m a l l - ~ u s i n e s s defined? This perfectly normal

question doesnot have a precise answer. It depends upon who

provides the definition". "Small firm cou?.i not be adequately

defined in terms of employment assets, turnover, output or any

other a rb i t r a ry single quantity, nor would the same definition be

appropriate throughout any economy". 6

\ I n India , industries i r e broadly classi f ied into four; l a rge

scale, medium size, small scaie and t i ny and cottage industries.

"Industries having an investment of Rs.5 crores o r more a r e

considered as large, those having a n investment of Rs.35 l akhs to

4. D .G. Tendulkar. Mahatma. Vol:VI, Publications Division, Delhi, p.78.

5. Dan Steinhgff a John F. B a r g ~ e s , "Small Business Management y ' 3 0 u r t h Edition. h l c G r a w H i l l International Fundamentais

Students Editiun, p .8.

6. Bolton 3.E , Small Firms Report of the Con~mittee of Inquiry on Small Firms, London, Her Majesty's Stationary Office, 1978, p.28.

R s . 5 crores a re referred to a s medium sized. Those industries

having a n investment upto Rs.35 lakhs i n p lan t and machinery a r e

termed a s s m a l l scalev7 and "all industr ies with a capi tal

investment of Rs.2 l akhs i n plant and machinery and located i n

r u r a l areas and towns with a population of less than 50,000 a re

included i n t iny sector".' There is no well marked distinction

between tiny sector and village industr ies according to th is

definition. Hence the definition given by Khadi and Village

Industries Commission is accepted for the present study.

The Khadi and Village Industries Commission defined vil lage

industries a s "any industry located i n a r u r a l a rea which produce

any goods or renders any service with or without the use of power

and i n which the fixed capi tal investment i n plant and machinery

and land and building per head of an a r t i s an or worker does not

exceed 15,000 rupees". 9

1.3. Evolution of Village Industries in Ind ia

From time immemorial, the vil lage industries have played a

predominant role i n the development of Indian economy and its

7. Govt. of India . , "Seventh Five Year Plan 1905-90, Vol.11, Plann- ing Commission, New Delhi.

8. Directorate of Industries and Commerce, Govt. of Kerala.

9. KVIC - brief information - 88, Directorate of Publicity, Khadi and Village Industries Commission, Gramodaya, I r l a Road, Vile Parle (W). Bombay, p.4.

civilisation. Here a historical analysis of the evolution of vil lage

industr ies i n India is necessary to have a c lear understanding of

its place during var ious periods. For va l id reasons the growth of

vi l lage industr ies over the years can be studied under three heads,

namely Pre-British, British and Post Independant periods.

1.3.1 Pre-British Period

India had a glorious past of vi l lage industr ies . Writings

of ear l ier vis i tors l ike Phahian contain detailed descriptions of

vil lage a r t i s ans i n India . According to them Ind ia was one of the

chief manufacturing centres of the world. The people of India had

produced a l l the goods needed for a good l iv ing i n the vil lages.

Prof. R.C. Majumdar testif ies t h i s i n h i s description of Indus-valley

civilisation :

Among the indus t r ia l a r t s and craf t s , spinning of wool and cotton seems to have been very popular both among the poor and the r ich , for the whorls made of cheap a s well a s costly materials have been found. That the dyeing of the fabrics was well known i s proved by the actual f ind of dyers ' vats . Fine wheel-made wares of var ious shapes and designs show the high development of pot ter ' s

a r t . 10

The Aryans also gave importance to weaving and ofher

skilled production jobs:

10. R.C. Majumdar, Ancient India , Motilal Banaras i Das, Delhi, 1977. p.24.

.. . both men and women were engaged i n th i s work a s well a s i n the subsidiary process of dyeing and embroidery . Next came the carpenter who constructed houses and supplied household utensils and furniture. They also bui l t chariots, car t s . boats and ships. Many of them were skil led i n wood carving and produced a r t i s t i c cups. They supplied various necessities of l i fe , from the fine needles and razors to the sickles, plough shares , spears and swords. .. The leather workers tanned leather and made out of it a r t ic les such as

bow-string and casks for holding l iquor . 11

A l l these give insight into the self-sufficient, self-reliant nature of

vi l lages i n ancient India .

With the advent of t rade and commerce, the skilled

a r t i sans of the ancient vil lages could produce more than sufficient

to m e e t the i r local demands. I n other words, the human s k i l l could

produce a surplus over consumption, but h i s wants could not,

however be satisfied within the household productions. Thus, there

arose the a r t i s an production to meet the wants of others. With the

growth of a r t i s an industry or handicraf ts , there arose division of

labour between different t rades and vocations. I n Ind ia , such

division of labour took the form of caste system and all castes

In a vil lage or group of vil lages were bound together by economic

ties:

Generally peasant castes a r e numerically preponderant i n vi l lages and they need t h e carpenter, blacksmith with leather-worker castes . . . .

11. Ibid. , p.47.

Artisan castes produce goods which a r e wanted by everyone. The essential a r t i s an and servicing

castes a r e paid annually in gra in at harvest . 12

During Maurya period, the gui ld organisation was i n a

flourishing condition. The principal industr ies were mining,

weaving, manufacture of l iquor and ship building. The art of the

carpenter and of the stone cutter was well developed, the l a t t e r is

best i l lustrated by Maurya sculpture. The other industr ies were

shoe-making, dyeing, pottery, f ishing, manufacture of flour and

suga r and extraction of oil. The guild organisation of

industry made fur ther progress i n Guptha period.

The t rad i t iona l organisation of industry and t r ade i n the

form of gui lds remained intact and continued to function during

Mughal period. "The s ta te gave full encouragement to industy and

r a n extensive workshops of its own. It was therefore possible to

give employment to hundreds of weavers of s i lk and to other people

i n connection with the production of ar t ic les needed at the court". 13

Among other pr incipal crafts, mention could be made of making of

wooden bedsteads, chests, stools and boxes, leather goods,paper,

pottery and bricks:

12. Gazettier of Ind ia , Social Structure, Vol.IV, Publication Division Government of India, 1969, pp.13-14.

13. K.A. Nilakantasastri , G . Sr inivasasastr i , History of South Ind ia , Oxford University Press, Delhi, 1980, p .123.

A t th i s period, Indian looms had a pract ical monopoly of the home market for cloth and i n addition had export markets. India supplied cotton goods to the east coast of Africa, Arabia, Egypt, Burma, Malacca, the Strai ts and other Asiatic markets. I n the course of the 17th century, the European demand for cotton goods led to increased production and Madras Calicos became a leading

item of the export t r ade of the eastern coast. 14

Thus the sk i l l and work of Indian a r t i s ans got approval and

appreciation i n various par t s of the world. But the importance of

guild system of Industries declined during the emergence of British

rule i n India .

1.3.2 British Period

The ru le of the British i n Ind ia can be divided into two

epoches; f i r s t the rule of the East Ind ia Company ranging from 1757

to 1857 and the ru l e of the British from 1857 to 1947. Before the

beginning of Industr ia l Revolution i n England, the East India

Company concentrated on the export of Indian manufactured goods.

textiles, spices etc. to Europe where these ar t ic les were i n grea t

demand. After the Industr ia l Revolution the tremendous expansion

of productive capacity of manufacturers resulted i n increased

demand of raw materials for British industry. This resulted i n the

flow of raw materials from India to Europe and efforts were made

to commercialise agriculture and indus t ry . Thus:

14. Ibid. , p.538.

One of the most momentous consequences of the establishment of British supremacy i n India was the disruption of the centuries old union between agriculture and manufacturing industry, a s a result of the progressive decline and destruction of the Indian town handicrafts and village ar t isan

industries. 15

The l a rge scale production tha t grew a s a result of the

Industrial Revolution met a heavy reduction in costs. It also

created a gigantic indus t r ia l organisation and consequently, the

machine-made goods began to compete with the products of Indian

industries and handicrafts. It striped the ar t isans of their means

of livelihood. Under these circumstances the village ar t i sans who

lost their traditional occupations began to move to agricul tural

sectors i n search of their livelihood which increased pressure of

population depending on land.

In 1870's the Indian leaders began a n intensive

investigation into the economic ills of their community:

A s a matter of fact , almost every Indian publicists of the day wrote ar t icles or books on the economic situation i n India or declaimed on the subject from the public platforms or i n the Council of Chambers and practically the whole field of Indian political l i terature of the period w a s concerned mainly with

economic ,a f fa i rs . 16

15. D.R. Gadgil, The Indust r ia l Evolution of India i n Recent Times, 1860-1939, Oxford University Press, Delhl, 1971.P.5

16. Bipin Chandra, The r i se and Growth of Economic Nationalism i n India. Peoples ' Publishing House. New Delhi , 1977, 88, pp .4-5.

Soon the subject of poverty began to dominate al l discussions of

economic problems in India and the Indian leaders began to attach

the highest importance to it. It was a t this time that Gandhiji

entered into Indian politics and he realised the urgency of reviving

traditional handicrafts. the decline of which impoverished the

Indian villages. From this time the movement for the revival of

village industries started.

During the early years, ie., upto 1947, the revival of

village industries was entirely a non-governmental effort under the

guidance of Gandhiji. In a revealing passage he said "our

villages are on the verge of destruction owing to the disappearance

of village industries. They can be revivified only by the revival

of village industries". l7 Gandhiji was of the opinion that

"industrialisation on a mass scale w i l l necessarily lead to passive

or active exploitation of the villagers". H e asserted the

importance of khadi and village industries i n a country like ours

teeming with millions of unemployed, and consequently with this

intention he started Khadi movement in 1918. In 1923 Gandhiji

formulated the A l l India Khadi Board. This organisation was an

integral part of the Indian National Congress and worked under its

direction and supervision. The objective of this organisation was

to ensure co-ordinated development of khadi throughout the country.

17. M . K . Gandhi, Harijan, 25.3.1939.

18. M.K. Gandhi, Harijan, 29.8.1936 .

The second phase of Khadi Movement opened i n 1925 with the

formation of a n autonomus organisation called A l l Ind ia Spinners

Association (AISA) of Akhil Bharat Charka Sangh. AISA did

commendable work with regard to the production, promotion, sales,

technological development and welfare of ar t isans. "Although

several Congressmen continued to play a n important role i n the

affairs of AISA, it w a s organisationally independent of Congress". 19

I n the thir t ies Gandhiji turned h i s attention to other

vil lage industries and established A l l Ind ia Village Industries

Association (AIVIA) i n 1935. The main objective of A l l Ind ia ,

Village Industries Association was the resucitation of languishing

industr ies through improvement i n tools and t raining.

Gandhiji was not entirely satisfied with the progress of the

two organisations and the programmes implemented for the

development of khadi and vil lage industries. So he merged them

together i n one organisation called Akhil Bharat Sarva Seva Sangh

(ABSSS). He was of the opinion tha t "khadi is the central sun

around which other village industries revolve l ike planets. They

have no independent existence, nor khadi can exist without other

vil lage industries. They a re absolutely interdependant". 20 In the

la t te r half of the forties he realised an imperative need for a new

19. S.K. Jaju, History of AISA, Sevagram, 1950, p.7.

20. M . K . Gandhi, Khadi - Why and How, Navajivan Publishing House, Ahmedabad, 1955. p.223.

approach and thus incorporated the development programmes of

khadi and village industries a s a part of the rural reconstruction

programme. H e named it a s 'Samagra Seva' and advocated lchadi

for the economic uplift of Indian villages. Gandhiji wrote in the

Harijan:

khadi (including village industries) i s the only true economic proposition in terms of the millions of villagers until. such time, i f ever, when a better system of supplying work and adequate wages for every ablebodied person above the age of sixteen, male or female, i s found for his field, cottage or even factory in every one of our villages or displaces the vFllages so a s to give the villagers the necessarv comforts and amenities that well

regulated life demands and is entitled to. 21

1.3.3 Post Independent Period

The second period in the history of revival of village

industries starts with the participation of the Government in Khadi

Movement. A s a part of this "the Government of Madras deputed a

senior officer to obtain advice from Gandhiji to setup a department

of khadi. This was followed by the Central Government's

recognition of the importance of rural cottage industries in

Industrial Policy Resolution of 1948". 22 The Constituent Assembly

also included development of cottage industries in ru ra l areas

21. M.K. Gandhi, Harijan, 20.6.1940.

22. Report of Khadi and Village Industries Review Committee, Ministry of Industries, Government of India, New Delhi, 1987, p.3.

among the Directive Principles of the Constitution in Article 43.

Realising the role of village industries in our national economy,

the planners give prime importance to the development of village

industries i n our national planning.

1.4. K h a d i and V i l l a g e Industries i n the Five Y e a r Plans - An

Overall V i e w

In the first Five Year Plan, for giving close attention to

the programmes of village industries and to create favourable

conditions for action, the Government of India set up A l l India

Village Industries Board. In the First Five Year Plan Draft, the ,

Planning Commission has stated:

while organisation in village industries requires d r i v e and direction from the Central and State Governments, the primary responsibility for carrying out programmes for village industries rests with the state Governments, but in many aspects, the framework within which they execute the programme for individual village industries is set by policies followed by the Central Government. In the Central Government, there is , therefore, need for an organisation which w i l l give close attention to the programmes of these industries and help to create favourable conditions for action by state Governments, constructive organisations and village -- co-operatives. LJ

In accordance with the recommendations of the Planning Commission,

the Government of India set up the A l l India Khadi and Village

23. First Five Year Plan Draft, Planning Commission, New Delhi, 1953, p.316.

Industries Board i n January 1953. The main functions of the Board

were to prepare and organise the programmes for the development of

khadi and vil lage industries: including t ra in ing of personnel,

manufacture , supply of raw materials, marketing and research

and study of economic problems of different vi l lage industr ies i n

the state.

The second Five Year Plan (1956-61) gave high pr ior i ty to

the development of heavy industry, but a l a r g e investment of public

funds was utilised for the promotion of v i l lage industr ies . It was

observed t h a t the Khadi and Village Industr ies Board was suffering

from several procedural handicaps including the lack of proper

f inancial arrangements. It was, therefore, decided i n 1955 t h a t the

Board should, be replaced by a statutory body. A Bill was

accordingly introduced i n Parliament, proposing the establishment of a

Commission with 'power executive a s well as administrative' for

proper development of khadi and vi l lage industr ies . It also

provided:

for the A l l India Khadi and Village Industr ies Board functioning a s an advisory body, which will advise the Commission generally i n the discharge of their duties. With the passing of t h i s Bill and the Promulgation of Act No.LXI of 1956, the Khadi and Village Industries Commission came into existence i n

April 1957. ?b

24. Report of Khadi and Village Industr ies Review Committee. O p . ci t . p.22.

Besides khadi , ini t ia l ly ten vil lage industr ies such a s Bee keeping,

Cottage match, Fibre works, Agarbathis. Pottery, Non-edible oil and

Soap, Flaying, Curing and Tanning of hides and skins and

Leather, Ghani O i l , Hand-Made paper , Gur and Khandasari, Palmgur

making and other palm products, Processing and Marketing of

Cereals, Pulses, Spices, Masalas etc. were included i n the schedule.

Subsequently 16 other vil lage industr ies were added to the

schedule. Consequently, the vil lage industr ies sector was viewed

a s a progressive and efficient decentralised sector, closely

integrated with agriculture.

I n 1955 the Government of India appointed a committee

under the chairmanship of Karve to examine the problems of vil lage

industr ies i n the country. The committee has recommended the

organisation of industr ia l co-operation for the implementation of

expanded programmes of vil lage industr ies and the initiation of

steps for faci l i ta t ing transit ion to higher technology. Accordingly

attempts were made t o ass is t r u r a l a r t i s ans for allocations under

r u r a l a r t s and craf ts i n the Community Development Block budgets

and to set up the training-cum production centres by the Block

administrations. But tine Khadi Evaluation Committee appointed i n

1960 noticed tha t the programmes did not come up to the expectation

due t o inadequate t ra ining, lack of proper pre-processing,

non-standardisation of spinning equipment and inadequacy of the

organisational structure. The committee also found t h a t the activit-

ies i n most a reas were confined to one or two vil lages.

The Third Five Year Plan (1961-66) l a id stress on

improvement of ski l ls , supply of technical guidance, better

equipment and liberalised credit, with a view to reduce cost of

production and achieve high productivity. It also suggested to

take necessary measures to ensure subsidies and other financial

assistance so as to motivate production uni t s to achieve economic

viability even from the initial years .

The Fourth Five Year Plan (1969-74) drew special attention

to regional dispari t ies i n the development of khadi and village

industries and to the need for special efforts i n backward areas . ,

In 1971-72, Khadi and Village Industr ies Commission approached the

State Governments requesting them to formulate schemes for

providing full-time employment to a r t i s a n s i n khadi and vil lage

industries. However only the Maharashtra State Khadi and Village

Industries Board took steps for its implementation and registered

294 block level multipurpose co-operatives. Under the scheme,

capital expenditure was borne by Khadi and Village Industries

Commission and the working cap i t a l w a s secured from the

institutional financing agencies.

The Fifth Five Year Plan (1974-79) highlighting the needs

of traditional a r t i sans who were getting displaced, suggested l a rge r

employment of insti tutional finance for vil lage industries i n the

wake of the expansion of the banking s t ructure after nationalisation.

Although great concern w a s expressed i n Fourth and Fifth plans, a t

the rising unemployment i n r u r a l a reas and special programmes like

Crash Schemes for Rural Employment (CSRE) and Drought Prone Area

Programme (DPAP) were introduced, they remained confined to land

based activities oriented to agriculture. Khadi and Village

Industries Commission with its charter for skill-based activities

oriented to a r t i sans was, by and la rge , not drawn into these

special employment programmes.

The Sixth Five Year Plan (1980-85) l a i d down specific

targets for vil lage industr ies to be developed under the Industry,

Service and Business (ISB) sector. But it was recorded ( in Seventh

Plan proposal) t h a t the target under the one p a r t of ISB sector

could not be achieved i n the Sixth Plan due to var ious reasons.

The Seventh Five Year Plan gave s t ress for the generation

of productive employment i n r u r a l areas . The Khadi and Village

Industries Commission has set itself an employment target of 23.31

lakhs in khadi and 40.25 lakhs i n vil lage industr ies during this

period. It w i l l be pertinent to analyse the progress achieved by

the KVIC in different plan periods For th i s purpose some selected

indicators a r e presented i n Table-1 .l.

It is evident from the table that while there were two state

Khadi and Village Industries Boards, 242 registered insti tutions and

60 co-operatives i n 1955-56, their number increased to 28 State

Khadi and Village Industries Boards. 1,300 registered institutions

Table - 1 . I

Production, Sales and Employment of Khadi and Village Industries in India During Plan Periods

Sr. Subject 1955-56 19GO-61 l91;i66 19ih?-6:) 1973-7s Nn. -- ..~ . . -- .- -

I. Villages Covcrcd (Lnkl~s~ K.4 KA N.4 N.% X.\

11. ORGAERSAllONS

(i) State KVI h r d s (Sm.j 2 14 15 I5 20 (ii) Instihlrions (Nos.) 242 720 1,037 673 62 I

(iii) Caopcmtivrs (Kos.) - GO 1 1,765 19,37 1 20,0i9 23,i15 -- Total 304 12,499 20,423 20,772 24,416

111. PRODUCnON (Rs. in C:rorcs) . . (i) Khadi 5.54 14.23 26.80 23.%? 32.72

(ii) Villagc Industrirs 10.93 33.16 55.87 75.12 122.40

Total 16.47 47.39 82.67 93.50 155. I2

1V. SALES (Rs. in Crorcs)

(i) Khadi 4.37 14.07 19.67 20.74 45.95 (ii) Village Indtfstries 0.90 28.36 49.13 63.98 115.64

Total 5.27 42.43 69.40 84.72 161.59

V. EMPLOYhlENT (LaW,

A. aLIi (i) Fun time 1.61 2.05 1 . D l 1.32 1.07 (ii) Part time 5.96 15.08 17.14 12.01 7.77

Total 6.57 17.13 18.95 13.36 8.84

B. Vill y Industries

- (i) ,Full time 0.0s 0. i 3 0.81 0. i 9 1.32 (ii) Part time 2.99 6.08 7.96 6.93 i .96

Total 3.07 6.81 8.77 7.72 9.28

1 . TOTAL EMPLOYMENT (.4 +B;

(ij Full lime 0.69 2.78 2.62 2.11 . 2.39 (ii) Part time 3.95 21.16 25.10 18.97 15.73

Tot;tl 9.M 23.94 27.72 21 .@I 18.1: ,.

I . WAGESiEARNINGS (Rs. in Crorrj)

(i) Khzdi 3 . 3 5 8 .54 16. I4 13.27 li.OS (ii) Village Industrieh 3 . 6 4 6.55 10.74 i 2 . 2 ~ 1 22.16

Toral 6.93 15.07 26.88 25. G7 39.24

Sr. Subject xu.

I I. ORGANISATIONS

!ij State KVI Bo..rds (Xos.) 24 24 24 27 28 :ii) Institutions (Sos.) 694 739 851 1,127 1.300 ..... I C:ooperatives (So%) 27,07 1 27,842 28,941 31,000 32,000

. Tot.11 77,789 28.603 29.816 32.154 33.328 .

III. PRODUCTION (Rs. in Cmrrsj

(ij Khadi 64.89 76.54 92.03 157.62 300.00 (iij Village Indlrrtrirs 192.54 242.97 347.98 e07.06 1,700.00

Total 257.43 319.51 440.01 964.68 5000.0

IV. SALES (Rs. in C:rot.rs)

(i) Khadi 66.52 78.26 87.13 159.52 310.00 (ii) Village Indtstrics 190.29 242.01 338.97 880.45 1,785.00

V. m5'LOYMENT (Lnk11 Persons)

.I. KLpdi

(i) Full time 2.39 2.53 3.41 4.24 7.00 (ii) Part time 6.83 7.81 7.79 8.81 13.00

Total 9.22 10.34 11.20 13.05 20:00 +

B. V i Idastries

(i) Full time 3.16 5.04 5.66 8.22 10.00 (ii) Part time' 11.78 9.92 10.47 16.60 20.00

Total 14.94 14.96 L6.13 . 24.84 30.00

\'I. TOTAL EMPLOYMENT (A i B;

(i) Full time 5.53 7.57 9.07 12.48 17.00 (ii! Part time 18.61 17.73 18.26 23.41 33.00

Source : Report of Khadi and Village Industries Review Committee, 1987. February, Government of India. pp .l3-14.

and over 37,000 co-operatives i n 1989-90. The production of khadi

and vil lage industr ies was increased from 16.47 crores i n 1955-56 to

2,000 crores i n 1989-90. But the employment opportunities provided

by khadi and vi l lage industries varied year af ter year. The

Figure 1.1 shows tha t though the employment in village industries

increased yea r af ter year , tha t i n the khadi sector reduced

rapidly:

The main reason for the sharp decline in employment after 1965-66 w a s inordinate delay i n the introduction of 6 and 12 spindle New Model Charkha (NMC) i n place of old and 4 spindle wooden Ambar Charkhas withdrawn earl ier , thereby creating a technology gap , fall i n real wages resultina i n a drop i n t h e . number of traditional -

25 spinners. .

The 'above facts reveal the importance of khadi and vil lage

industries i n improving the conditions of r u r a l people. In th is

context we can recall Gandhiji 's statement:

I have no doubt i n my mind t h a t we add to the national wealth if we help the smallscale industries. I have no doubt also t h a t t rue swadeshi consists i n encouraging and reviving these home industries. That alone can help the dumb millions. It also provides an outlet for the creative faculties and resourcefulness of the people. It can also usefully employ hundreds of youths i n the country who a r e i n need of employment. It may harness all the energy t h a t at present runs to

waste. 26

25. Ibid., p.10.

26. M . K . Gandhi. Cent Percent Swadeshi, Navajivan Publishing House, Ahmedabad, 1958, p.5.

FIGURE - 1.1

E m p l o y m e n t in K h a d i and Village Industries

26

24

22 -

20 - 19 - 16 - 14 - 12 - 1 0

8 - 6 - 4 - 2

Source: Report of Khadi a n d Vil lage I n d u s t r i e s Review Committee, 1987, F e b r u a r y , Government of India. p . l 4 ( a ) .

-

V- Village Industries

In the present study, an attempt is made to analyse the

nature, status, scope and problems and prospects of village

industries with special reference to Kerala. Kerala has been the

traditional home of village industries for centuries in the past.

However at present the programme of village Industries was mainly

being carried out by K V I B .Board. There are 21 village industries

within the purview of the Board. The present work is based on the

programmes implemented by the Board in the State.