With the liberalisation and globalisation of the economy and the removal of quantitative restrictions, the smaller units of the khadi and village industry sector are facing stiff competition. A large portion of India’s population lives in the villages where illiteracy still prevails and large industry is not in a position to absorb the work force from rural areas. In view of this, it is necessary to create more employment opportunities in villages by utilising
local resources and skills so that rural people can get work in the villages itself
production and employment in village industries have grown from
Rs. 3,895 crore in 1997-98 to Rs. 7,140.52 crore in 2001-02 and new job creation has been reported.
