The Asian Development Bank (ADB) is lending $150 million to help India revive the popularity of ‘khadi', a widely-revered handspun and hand-woven cloth promoted by Mahatma Gandhi. This move seems to be a fitting tribute to Father of the Nation Mahatma Gandhi, on his birth anniversary.

The khadi industry has been left behind due poor production and marketing and therefore revival of this industry is expected to boost employment opportunities in India, particularly in the rural areas where 73% of the country's poor live. India's 11th Five Year Plan notes khadi production has huge employment prospects, particularly for women and minorities.

ADB has approved an aid of Rs 600 crore to the Khadi and Village Industries Commission for technological upgrade of over 300 khadi and village industrial units. "The money will be utilized for technological upgrade of over 300 khadi and village industrial units," said Kumud Joshi, Chairperson of Khadi and Village Industries Commission.

The Khadi and village industries production during 2006-07 stood at Rs 491 crore employing 8.8 lakh persons. Village industries turnover during the year stood at Rs 13,537 crore.

ADB pointed that sales of khadi have declined over the years because of factors such as ageing equipment, inconsistent product quality and lack of professional expertise and funding.

A loan sanction by ADB will help the khadi industry by establishing a "khadi mark" to promote brand awareness, setting up a privately controlled marketing organization and enabling the purchase and processing of raw materials to bring down costs and improve quality.

Delhi based designer Sunaina Suneja, a self-confessed Mahatma Gandhi fan, is also on a mission to revive the popularity of Khadi.

"Khadi is more than a fabric - it's a concept. By encouraging people to wear Khadi which is hand woven, Gandhiji encouraged self-reliance and empowerment. Unfortunately, its popularity is dwindling. A National Khadi Day which will encourage people to wear the fabric at least once a year will help revive the concept and in turn pay homage to the father of the nation," said Suneja. Suneja strongly recommends wearing Khadi as it suits Indian weather conditions.

Khadi is Indian handspun and hand-woven cloth promoted by Mahatma Gandhi in 1920s for rural self-employment in India. The raw materials may be cotton, silk, or wool, which are spun into threads on a spinning wheel called a charkha. Khadi is a versatile fabric, cool in summers and warm in winters.