§1What this business is
Khadi fabric is layered, cut, stitched, finished with buttons and trims, thread-cut, steam-pressed and packed. Khadi breathes well in summer and is body-friendly, says the report; the same line can make suits, shirts, tops and tunics.
Capacity: 100 kurtis a day, 30,000 a year (8 hours, 300 days).
§2Is it right for you?
Who it is for
A garment maker or women's group with access to khadi institutions and boutiques.
Who it is not for
Someone who plans to sell mill fabric as khadi — that breaks the Khadi Mark rules.
Advantages
- Khadi has strong government and public backing
- Natural, breathable fabric in demand
- Many jobs for tailors, especially women
- Profit grows well after year 2
Drawbacks
- Very small profit in year 1
- Genuine khadi fabric costs more and must come from certified sources
- Large selling cost (about 10% of sales)
- Fashion risk
Skills you need
- Pattern making and stitching
- Khadi fabric sourcing
- Design for modern buyers
- Retail and exhibition selling
Why difficulty 2/5: Simple stitching unit; selling at a good price is the work.
§3Market
Who buys
- Women who prefer natural fabrics
- Khadi Bhandars and boutiques
- Offices and institutions for uniforms
How it sells
- Khadi outlets and exhibitions
- Online marketplaces
Good to know
- The report says India produces about ₹600 crore of khadi a year with sales of about ₹900 crore.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Stitching machine | 10 | ₹7,00,000 (₹70,000 each) |
| Cutting machine | 4 | ₹60,000 (₹15,000 each) |
| Steam pressing machine | 4 | ₹3,20,000 (₹80,000 each) |
| Needle lock stitch machine | 4 | ₹36,000 (₹9,000 each) |
| Overlock machine | 2 | ₹20,000 (₹10,000 each) |
From: PMEGP sample project report — Khadi Kurti (prepared by Udyami/Samadhan)
- Khadi cotton fabric₹300 a running metre, one metre a kurti
- Buttons, threads and packagingpackaging ₹10 a piece; ₹310 a kurti in all
From: PMEGP sample project report — Khadi Kurti (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Bijapur Khadi Cluster · Belagavi →Bijoypur Silk Khadi Cluster · Murshidabad →Chak Islampur Muslin Khadi Cluster · Murshidabad →Chitrashali Khadi Cluster · Nadia →Eri Silk Cluster · East Siang →Harihara Khadi Cluster · Davangere →Hudli Khadi Cluster · Belagavi →Indore Mahila Garment Leather Toys And Jute Product Cluster · Indore →Kangayam Khadi Cluster · Tiruppur →Lakhimpur Silk Cluster · Lakhimpur →Psk Silk Khadi Cluster · Kamrup →Sandur Khadi Cluster · Ballari →
§5Licences & registration
- Udyam registration
- GST registration
- Use the Khadi Mark only for khadi bought from KVIC-certified institutions
- Trademark for your brand name (optional)
§6Schemes & subsidies
Prepared for PMEGP (run by KVIC); CGTMSE covers collateral.
§7Money
How the investment is worked out: Shed (1,200 sq ft) ₹4.00 L + plant & machinery ₹11.36 L + furniture ₹1.25 L + working capital ₹7.22 L = ₹23.83 L. Term loan ₹14.95 L, working capital ₹6.50 L, own ₹2.38 L.
Working capital: Working capital ₹7.22 L (bank ₹6.50 L): 12 days of fabric, 7 days of finished stock; most is money owed by buyers.
Year not printed in the report — check current machinery and raw-material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: AEPC (Apparel Export Promotion Council)
- Check the exact heading for your kurti length and style with your customs broker.
§9Risks — where people fail
- Unsold designs
- Fabric supply gaps
- Shrinkage and colour complaints
- Wage costs
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working khadi kurti stitching unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Khadi Kurti Stitching?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.