Apart from establishing organisations like the All India Handloom Board, The Khadi and Village Industries Commission, etc. to improve the status of the Khadi industry, the government has also taken certain specific measures which are as under.
1. The government itself issues orders for the supply of khadi and handloom products.
2. The government levies a cess on the cotton and synthetic textile mills and uses the revenue for the promotion of the khadi and handloom industry.
3. The government also reserves certain lines of production for the khadi industry. For example, it places a limit on the saree production by mills.
4. Assistance is made available to improve techniques of production and management.
5. Financial aid is provided to the industry. Also, the government charges lesser taxes on the production of khadi and handloom products.
6. The government itself undertakes the marketing of the khadi and handloom products.
