This document summarizes Lok Sabha Unstarred Question No. 4748, addressed to the Minister of Micro, Small and Medium Enterprises on August 21, 2025, regarding Direct Benefit Transfer (DBT) to artisans. The response, provided by the Minister of State for Micro, Small and Medium Enterprises, Sushri Shobha Karandlaje, addresses inquiries about DBT implementation, artisan classification, social security expansion, and associated budgetary provisions.
The Khadi and Village Industries Commission (KVIC), established in 1957, plays a central role in promoting and developing khadi and village industries in rural areas. The Khadi Vikas Yojana (KVY), a key scheme under the Khadi Gramodyog Vikas Yojana (KGVY), utilizes the Modified Market Development Assistance (MMDA) component to provide financial aid to Khadi Institutions, artisans, and Karyakartas. KVIC has implemented a DBT system for MMDA, directly transferring funds to beneficiaries' bank accounts to enhance transparency and efficiency.
The response clarifies that artisans' earnings, based on a piece-rate system tied to production capacity and the type of Khadi produced, are not directly comparable to those of skilled laborers. The MMDA scheme provides financial incentives proportional to production.
Key Entities Referenced
Direct Benefit Transfer: A system implemented by Khadi and Village Industries Commission to directly transfer financial assistance to artisans and Karyakartas, eliminating intermediaries.
Khadi and Village Industries Commission: A statutory body established in 1957 under the Khadi and Village Industries Commission Act, 1956, responsible for the development of khadi and village industries.
Khadi and Village Industries Commission Act, 1956: The legislative act under which the Khadi and Village Industries Commission was established.
Khadi Vikas Yojana: A key scheme under Khadi Gramodyog Vikas Yojana for the promotion and development of the Khadi sector.
Khadi Gramodyog Vikas Yojana: An umbrella scheme for promotion and development of Khadi sector.
Modified Market Development Assistance: A component of Khadi Vikas Yojana through which financial assistance is given to producing Khadi Institutions, Khadi Artisans and Khadi Karyakartas.
Sushri Shobha Karandlaje: Minister of State for Micro, Small and Medium Enterprises
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for policies related to micro, small, and medium enterprises.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No. 4748
TO BE ANSWERED ON 21.08.2025
DIRECT-BENEFIT TRANSFER TO ARTISANS
4748. SHRI ESWARASAMY K:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether any suggestion was made to explore ways to transfer the wages directly to the bank
accounts of the artisans through Direct-Benefit Transfer (DBT);
(b) if so, the details thereof;
(c) whether the Government proposes to classify artisans as skilled labourers for the purpose of
wage and other benefits;
(d) whether the Government is considering to expand the ambit of social security schemes for the
artisans; and
(e) if so, whether there are any budgetary provisions made for the same?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) & (b): The Khadi and Village Industries Commission (KVIC) is a statutory body established
in 1957 under the Khadi and Village Industries Commission Act, 1956. The primary role of KVIC is
to plan, promote, facilitate, organize, and assist in the establishment and development of khadi and
village industries across rural areas, thereby generating sustainable employment opportunities and
strengthening the rural economy. Khadi Vikas Yojana (KVY) is one the key scheme under the
umbrella scheme of Khadi Gramodyog Vikas Yojana (KGVY) for promotion and development of
Khadi sector. Modified Market Development Assistance (MMDA) is one of the component of KVY
through which financial assistance is given to producing Khadi Institutions, Khadi Artisans and
Khadi Karyakartas. To ensure transparent and timely transfer of MMDA to artisans and Karyakartas,
KVIC introduced the Direct Benefit Transfer (DBT) system based on bank accounts of the
beneficiaries, eliminating intermediaries and ensuring that the intended beneficiaries receive the
benefits of the scheme.
(c) to (e): Artisans are supported through financial incentives under the Modified Market
Development Assistance (MMDA) Scheme, which are released in proportion to the production
undertaken. Khadi activity is a decentralized and normally part time activity in which the earnings of
Khadi artisans are based on piece rate system which depends on the production capacity of the
artisans and also varies according to variety of Khadi they spin or weave, such as cotton Khadi, silk
Khadi, muslin Khadi, woolen Khadi, etc. Hence, the earnings cannot be compared with the skilled
labours.
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