New Delhi, Oct. 29 -- The Ministry of Micro, Small and Medium Enterprises (MSME) has sought Rs.6,000 crore to continue its flagship scheme for khadi and village industries for five years through March 2031, as the government weighs further support for a sector that underpins millions of rural livelihoods.

The proposed outlay for the Khadi Gramodyog Vikas Yojana is intended to support artisans, predominantly women, unemployed rural youth, self-help groups and thousands of village industries, three people aware of the development said. Continuing the scheme with adequate funding is also critical to preserving khadi's legacy as a symbol of India's freedom struggle, they said.

About 20.4 million people were engaged in khadi and village indu...