Definition of "Village Industry" Under Khadi and Village Industries Commission Act, 1956: Investment Caps and Location Criteria Explained
A "Village Industry" under the Khadi and Village Industries Commission Act, 1956, refers to industries in rural areas producing goods or services, with or without power, where the fixed capital investment per artisan or worker does not exceed one lakh rupees, subject to changes by the Central Government. Industries recognized before the 1987 amendment remain classified as village industries, even if not in rural areas. In hilly areas, the investment cap is increased to one lakh and fifty thousand rupees. It also includes non-manufacturing units that support or manage village industries.
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