Soon Swadeshi goods will be in vogue as Asian Development Bank has declared to provide USD 150 million (Rs 675 crore) loan to India in order to revive and enhance the nation’s khadi industry.

The re-emergence of the industry will not only provide rural employment but also encouragement to Small Scale industries. The loan, which will be given in four installments over a period of three years will entail success of 11th year plan, which emphasized on khadi production and the significance it holds for the women and the minorities from employments perspective.

The declining Khadi industry, which is responsible for less than one percent of the nation’s textile industry is undergoing huge losses due to lack of quality and good production unit, the age old equipment, lack of funds and expertise.

Realizing the gravity of the situation a senior finance specialist of ADB's South Asia department pointed out that, "Even with the recognition of khadi in India and the large and diverse potential market the country provides, sales have nearly stagnated and fallen behind the overall strong market demand enjoyed by the textile market."

In order to support and scrutinize the implementation of the program, the Japan Special Fund is contributing USD 2 million (Rs 9 crore) in this aid. The revival of this industry will provide impetus to rural employment where around 73 per cent people are poor.